Influence of Marketing Strategies on Competitive Advantage of

i

INFLUENCE OF MARKETING STRATEGIES ON COMPETITIVE

ADVANTAGE OF SUGAR MANUFACTURING COMPANIES IN KENYA.

A CASE OF SONY SUGAR COMPANY

by

Ruth Ommala

A thesis presented to the School of Business and Economics

of

Daystar University

Nairobi, Kenya

In partial fulfillment of the requirements for the degree of

MASTER OF BUSINESS ADMINISTRATION

in Marketing and Strategic Management

October 2021

Daystar University Repository

Library Archives Copy

ii

APPROVAL


ADVANTAGE OF SUGAR MANUFACTURING COMPANIES IN KENYA:


by

Ruth Ommala

17-1030

In accordance with Daystar University policies, this thesis is accepted in partial

fulfillment of the requirements for the Master of Business Administration degree.

Date:

____________________________ _____________________

Michael Opok, MSc.,

1st Supervisor

_____________________________ ____________________

Evans Amata, PhD,

2nd

Supervisor

_____________________________ _____________________

Joseph Munyao, MSc.,

HoD, Commerce Department

_____________________________ _____________________

Evans Amata, PhD,

Dean, School of Business and Economics



iii

Copyright©2021 by Ruth Ommala



iv

DECLARATION


ADVANTAGE OF SUGAR MANUFACTURING COMPANIES IN KENYA.


I declare that this thesis is my original work and has not been submitted to any other

college or university for academic credit.

Signed: _____________________ Date: ______________________

Ruth Ommala

17-1030



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ACKNOWLEDGEMENTS

I thank the Almighty God for the gift of life and good health during the writing of this

thesis. I wish to express my gratitude to my supervisors, Mr. Michael Opok and Dr.

Evans Amata, for their advice and guidance in the process of writing this study. I also

wish to thank my classmates and friends who offered me inspiration and constant

support.



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TABLE OF CONTENTS

APPROVAL .............................................................................................................. ii

DECLARATION ...................................................................................................... iv

ACKNOWLEDGEMENTS ....................................................................................... v

TABLE OF CONTENTS .......................................................................................... vi

LIST OF TABLES ................................................................................................. viii

LIST OF FIGURES .................................................................................................. ix

LIST OF ABBREVIATIONS AND ACRONYMS .................................................... x

ABSTRACT ............................................................................................................. xi

DEDICATION ........................................................................................................ xii

CHAPTER ONE........................................................................................................ 1

INTRODUCTION AND BACKGROUND OF THE STUDY ................................... 1

Introduction .......................................................................................................... 1

Background to the Study ....................................................................................... 2

Statement of the Problem .................................................................................... 10

Purpose of the Study ........................................................................................... 12

Objectives of the Study ....................................................................................... 12

Research Questions ............................................................................................. 12

Justification for the Study ................................................................................... 13

Significance of the Study .................................................................................... 13

Assumptions of the Study ................................................................................... 15

Scope of the study ............................................................................................... 15

Limitations and Delimitations of the Study ......................................................... 16

Definitions of Terms ........................................................................................... 16

Summary ............................................................................................................ 17

CHAPTER TWO ..................................................................................................... 18

LITERATURE REVIEW ........................................................................................ 18

Introduction ........................................................................................................ 18

Theoretical Framework ....................................................................................... 18

General Literature Review .................................................................................. 23

Empirical Literature Review ............................................................................... 33

Conceptual Framework ....................................................................................... 39

Discussion .......................................................................................................... 39

Summary ............................................................................................................ 40

CHAPTER THREE ................................................................................................. 41

RESEARCH METHODOLOGY ............................................................................. 41

Introduction ............................................................................................................. 41

Research Design ................................................................................................. 41

Population ........................................................................................................... 42

Target Population ................................................................................................ 42

Sample Size ........................................................................................................ 43

Sampling Techniques .......................................................................................... 44

Data Collection Instruments ................................................................................ 45

Data Collection Procedures ................................................................................. 46

Pretesting ............................................................................................................ 47

Data Analysis Plan .............................................................................................. 49

Ethical Considerations ........................................................................................ 50

Summary ............................................................................................................ 51



vii

CHAPTER FOUR ................................................................................................... 52

DATA PRESENTATION, ANALYSIS, AND INTERPRETATION ....................... 52

Introduction ........................................................................................................ 52

Analysis and Interpretation ................................................................................. 53

Summary of Key Findings .................................................................................. 74

Summary ............................................................................................................ 76

CHAPTER FIVE ..................................................................................................... 77

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS ......................... 77

Introduction ........................................................................................................ 77

Discussions of Key Findings ............................................................................... 77

Conclusion .......................................................................................................... 85

Recommendations ............................................................................................... 86

Recommendations for Further Research .............................................................. 87

REFERENCES ........................................................................................................ 89

APPENDICES ......................................................................................................... 94

Appendix A: Questionnaire ................................................................................. 94

Appendix B: In-depth Interview Guide ............................................................... 97

Appendix C: Researcher’s Letter Seeking Permission to Collect Data ................. 98

Appendix D: Ethical Clearance ........................................................................... 99

Appendix E: Research Permit ........................................................................... 100

Appendix F: Plagiarism Report ......................................................................... 101



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LIST OF TABLES

Table 3.1: Distribution of Target Population and Sample Size ................................. 43

Table 3.2: Cronbach’s Alpha Coefficients for Multiple Likert Scale Items ............... 49

Table 4.1: Current Position in the Company ............................................................ 53

Table 4.2: Period Worked in the Company .............................................................. 54

Table 4.3: Period Worked in the Current Position ................................................... 54

Table 4.4: Market Strategies Adopted by Sugar Company ....................................... 55

Table 4.5: Measures of Competitive Advantage ....................................................... 57

Table 4.6: Pricing on Competitive Advantage .......................................................... 58

Table 4.7: Promotion Strategy on Competitive Advantage ....................................... 59

Table 4.8: Product and Competitive Advantage ....................................................... 61

Table 4.9: Place on Competitive Advantage ............................................................. 62

Table 4.10: Sale Volume on Competitive Advantage ................................................ 64

Table 4.11: Influence of Marketing Strategies on Competitive Advantage ................ 66

Table 4.12: Model Summary of the Regression Analysis .......................................... 69

Table 4.13: Model Summary of the Regression Analysis .......................................... 70

Table 4.14: Coefficient of correlation: Marketing Strategies-Competitive Advantage

............................................................................................................... 71



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LIST OF FIGURES

Figure 2.1: Conceptual Framework ......................................................................... 39

Figure 4.1: Response Rate ....................................................................................... 52



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LIST OF ABBREVIATIONS AND ACRONYMS

COMESA Common Market for Eastern and Southern Africa

ERB Ethical Review Board

GDP Gross Domestic Product

NACOSTI National Commission for Science, Technology, and Innovations

SONY South Nyanza

SPSS Statistical Package for the Social Sciences

SWOT Strengths Weaknesses Opportunity Threats

VRIO Valuable, Rare, Inimitable, and Organization



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ABSTRACT

This study focused on exploring the marketing strategies used by sugar manufacturers

in Kenya to improve their performance by gaining a suitable competitive edge in the

marketplace. The objectives of the study were to identify the marketing strategies

used by Sony Sugar Company, assess how competitive advantage was measured at

the company, and examine how the company’s marketing strategies influenced its

competitive advantage in the market. The study was anchored on three theories,

namely resource-based theory, game theory in marketing strategies, and the Ansoff

matrix. This research adopted the descriptive design, and the population was 1,300,

comprising employees and the management of Sony Sugar Company. A sample of

117, composed of permanent employees and three key informants, was selected

through simple random and purposive sampling respectively. Data were collected

using questionnaires and interview guides. The collected data were analyzed using

descriptive (frequencies and percentages) and inferential (regression model) statistics

with the aid of the Statistical Package for the Social Sciences (SPSS), version 25.0.

Findings were presented through statistical tables. The findings revealed that the

major marketing strategies that had been adopted by Sony Sugar Company to enhance

competitive advantage were product strategy (72.9%), pricing strategy (61.7%),

promotion strategy (60.7%), place strategy (23.4%), and sale volume strategy

(15.9%). Overall, the study found that when all the five marketing strategies are

combined, they influence competitive advantage of sugar manufacturing companies in

Kenya by up to 65.8% (Adjusted R2=0.658). The study recommended that sugar

manufacturing companies should consider the marketing mix and sales volume if they

hope to have an edge over their competitors.



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DEDICATION

This thesis is dedicated to the Almighty God for His love and care throughout my life.

I also dedicate it to family members, particularly my beloved parents, Mr. and Mrs.

Ommala, for their unwavering moral, social, and spiritual support throughout the

entire writing process.



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CHAPTER ONE

INTRODUCTION AND BACKGROUND OF THE STUDY

Introduction

Businesses and whole industries are continually facing challenges caused by the

dynamic and turbulent economic environment all over the world. On a global scale,

competition, and globalization of international markets, coupled with the changing

trends of trade relations as well as government policies, create an unpredictable

business environment for sugar manufacturing firms (Atingo and Kwasira, 2018).

Consequently, market structures shaped by interdependence, technological

advancement, liberalization, and strategic marketing have been built. Atingo and

Kwasira (2018) reported that in an increasingly competitive industry, sugar firms have

to swiftly adapt and take advantage of any emerging opportunities, respond to threats,

outdo their competitors and mitigate any disasters.

In Kenya, the sugar industry is one of the most critical sectors in agriculture within

the Western and Nyanza region and it plays a very substantial role in the national

economy (Obasan, Ariyo, & Hassan, 2015). The current study sought to explore how

marketing strategies influence the performance of sugar-producing firms in Kenya.

Thus, this chapter looks into the background information that this study was based on

with particular focus on the marketing strategies and performance of companies.

Additionally, the chapter focuses on the research problem that the study sought to

address, the research objectives, and the study questions to be answered. Similarly,

the chapter provides the justification, significance, scope, assumptions and the

limitations and delimitations of the study. Lastly, the chapter gives the definitions of

the study’s key terms.



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Background to the Study

Over the last decade, the sugar sub-sector is faced with emerging challenges that

affect the competitiveness, performance, and survival of the manufacturing

companies. This is the case even when the subsector is one of the essential

agricultural sectors in Kenya. As Atingo and Kwasira (2018) reported, it provides a

significant source of income to more than 10,000 farmers in the Nyanza and Western

region and supports the livelihoods of more than two million people. The role of

sugar, as a major contributor of people’s livelihoods and the country’s economic

growth is being threatened by various economic challenges in the sugar sub-sector

and the nation as a whole. The marketing strategies adopted by sugar companies in

Kenya directly influence their competitive advantage by determining how they fare in

the sector as well as their market share. To achieve organizational and sales

performance within the scope of sustainable competitive advantage, managers have to

implement appropriate marketing strategies (Obasan et al., 2015).

Marketing strategy practices have been developed and adopted by Kenyan sugar

companies in response to the rising challenges caused by the turbulent business

environment (Moraa, Senaji, Mbithi, 2017). The strategy helps companies to cope

with business environmental changes by designing and implementing relevant

responses to improve the performance of the sugar-producing firms. Challenges are

forcing the sugar subsector to seek the best marketing strategies and management

practices so that they can boost their shareholder value and grow their market share

(Moraa et al., 2017). Formulation of marketing strategies is a policy factor and

company managers are developers and implementers of such policies.



3

Marketing strategies comprise methods of focusing on a company’s resources on a

specific course of action, which can bring about market domination and increased

sales (Obasan et al., 2015). Marketing strategies can only influence the performance

of an organization positively if they are integrated in the company’s marketing

objectives, policies, and actions. In a challenging business environment, sugar

companies in Kenya have tried to attain competitive advantage by initiating strategic

management and marketing strategies (Obasan et al., 2015). Such include

differentiation strategies, cost leadership strategies, focus, and generic strategies.

Often, marketing strategies are interactive and highly dynamic and can serve as the

foundation of an organization’s marketing plan.

Marketing Strategies

A marketing strategy is part of the management discipline and focuses on the

company’s mission, seeks potential opportunities, and establishes whether or not they

are fit for the firm (Obasan et al., 2015). Marketing strategy requires the allocation of

resources to help companies gain a competitive advantage in the target larger market

where there is stiff competition.

One marketing strategy involves competitive marketing strategies, which measure

both the radical and incremental changes taking place in the work processes (Obasan

et al., 2015). They are the backbone of any business as they lead to increased

performance and productivity. Marketing strategy relates to the allocation of

resources to help a company gain a favorable position in the market (Obasan et al.,

2015). The influence of marketing strategies can be witnessed on the turnover rate in

the firm and its performance. The current study investigated the different marketing



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strategies used by Kenyan sugar manufacturing firms and how they give them a

competitive advantage (Moraa et al., 2017).

Additionally, there is market development strategy, which is another significant factor

that influences the way in which sugar companies in Kenya perform. Mbithi, Muturi,

and Rambo (2017) defined market development as the process of taking the existing

products of a business and finding new markets by exploring previously neglected

market segments. Mbithi et al. (2017) further reported that a market development

strategy can be implemented by either moving the current product into new

geographical regions or by expanding company sales to attract new markets. The next

section will discuss how the competitive advantage of a company facilitates the

achievement of high-performance standards in the industry.

Competitive Advantage

The competitive position and its subsequent improvement for any business is a

dominant theme in marketing strategies. The performance of sugar firms in terms of

productivity and returns, directly determine the economic development of the

agricultural sector and the country as a whole (Waswa, Mukras, & Oima, 2018). The

performance of the manufacturing companies is a direct pointer to the growth of the

economy and national Gross Domestic Product (GDP). Essentially, company

performance is a function of several factors, such as the selected marketing strategy

that enhances market expansion and accessibility such as the marketing mix. The

development of a market strategy assists company managers in making well-informed

decisions and taking initiatives that are successful and effective in an ever-changing

external environment (Waswa et al., 2018).)



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According to Obasan et al., (2015), the competitive position is a complex and multi-

faceted phenomenon, and no particular measure of performance is sufficient to

represent organizational performance holistically. A strong competitive position must

comprise efficiency, adaptability, and effectiveness. Additionally, there is a crucial

connection among strategic orientations, competitive positioning, and interactive

control system (Obasan et al., (2015).

Competitive advantage is realized when a firm’s strategy helps it maintain and sustain

a desirable market position as well as perform exceptionally. The favorable position

in the industry translates into improved sales and higher revenue when compared to

those of competitors in the same sector (Moraa et al., 2017). There is a lack of

extensive and satisfactory research on the competitive position and performance of

sugar firms in the Kenyan market. These issues call for research into the status and

competitive advantage of sugar manufacturing companies in the country

Relationship between Marketing Strategies and Competitive Advantage

The 21st century is an era of drastic changes in the business environment especially at

the macro-level, thus, organizations continuously need a sustainable competitive

advantage to adapt to the turbulent changes and succeed (Aghazadeh, 2015).

Organizations can create and sustain a competitive position in the market through

marketing strategies and management (Obasan et al., (2015). They can develop

strategies based on their internal strengths and external positions in the sector in

which they are operating. Next, the businesses implement these strategies to earn a

competitive advantage using their primary competencies by creating value for the

market, attracting and satisfying new customers. To sustain an organization’s

competitive position, marketing strategies play a crucial role in encouraging and



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persuading customers to come back for return purchases as proven by the market-

based view (Aghazadeh, 2015). Additionally, it also helps in creating distinctive and

unique competencies by making the main competencies VRIO, which stands for

valuable, rare, not imitable, and the ability to organize.

In the current dynamic business environment, VRIO, as well as customer retention are

important but not necessarily sufficient in sustaining an organization’s competitive

position and helping it attain superior performance (Aghazadeh, 2015). To this end,

the organization has to implement marketing strategies that ensure that it is market

and customer-oriented, and that it thinks and acts on innovative knowledge as well as

develops and maintains long-term relationships with the customers (Aghazadeh,

2015). Superiority in the market can only be achieved through sustaining a

competitive advantage and developing informed marketing strategies. Furthermore, a

business can earn its competitive edge by lowering the cost of production relative to

that of rival companies (Aghazadeh, 2015).

Sugar Industry in Kenya

Records from the Kenya Sugar Board reveals that sugarcane farming started being

practiced in Kenya in 1902. However, in Western parts of Kenya, the first sugar

manufacturing company was established in 1922, that is, Miwani Sugar Company. In

1927, another sugar manufacturing company by the name Ramisi was established.

Later, Muhoroni Sugar Company was established in 1966, Chemelil Sugar Company

in 1968, Mumias Sugar Company in 1973, Nzoia Sugar Company in 1978, South

Nyanza Sugar Company in 1979, West Kenya Sugar Company in 1981, Soin Sugar

Company in 2006, Kibos Sugar and Allied Industries Limited in 2007 and Butali

Sugar Company in 2011. In 1988, Ramisi Sugar Factory Ltd collapsed while Miwani



7

Sugar Factory Ltd indefinitely closed in February 2001. Trans-Mara Sugar Company

and Sukari Industries were also registered in 2011.

According to the Kenya Sugar Industry Strategic Plan 2010-2014, the sugar

manufacturing factories were at first established by the government with an aim of

ensuring that there was self-reliance in sugar production and its by-products, which

include but not limited to: industrial sugar, animal feeds, and alcohol. Secondly, the

government established sugar manufacturing factories in order to promote the socio-

economic well-being of people living in rural areas, thus, limiting rural-urban

migration. Thirdly, the government aimed at creating employment for the population.

Finally, the government at first established sugar manufacturing companies so as to

save on foreign exchange resulting from import substitution (Kozlenkova, Samaha, &

Palmatier, 2014).

The state of the sugar industry in Kenya is influenced by external and internal factors

(Bulitia, 2017). For the external factors, there is the high cost of production, barriers

to trade and limited access to markets. The internal factors include the embracing of

market liberalization which led to the removal of price controls and competition from

small-scale sugar manufacturers in big markets such as the Common Market for

Eastern and Southern Africa (COMESA) (Kozlenkova et al., 2014).

During the 1980s, sugar manufacturing companies were restricted from selling

directly to retail outlets and other distributors. Consequently, the firms did not

develop their marketing strategies. The lack of marketing strategies and the

deprivation and erosion of consumers’ purchasing power by economic recessions has

contributed to the decline in the performance of Kenyan sugar companies (Bulitia,

2017). To this end, the current study sought to examine how marketing strategies



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adopted by sugar manufacturing firms influence their performance and gives them a

competitive advantage. The success and performance of any business is directly

affected by its external core competencies and its position in an industry with

competing firms (Kozlenkova, et al., 2014).

Successful marketing strategies can help sugar companies to expand their market

share and earn a competitive edge over their rivals even from foreign companies.

Strategy significantly determines whether sugar companies excel, survive, or collapse

in the Kenyan economy (Bulitia, 2017). With the implementation of marketing

strategies, the firms become more proactive as opposed to being reactive in the

industry, as they account for any fundamental changes in the macro-environment

(Bulitia, 2017). This study focused on government owned sugar company, South

Nyanza Sugar factory (SONY).

Sony Sugar Company Limited

Various sugar manufacturers have adopted different marketing strategies to remain

competitive in the Kenyan industry. According to past research findings, Kenyan

sugar companies use competitive marketing strategies to acquire a substantial market

share in the sector (Obado, 2005). Primarily, they utilize differentiation strategies by

putting significant emphasis on distribution and branding, as well as customer service.

Sony Sugar is one of the main sugar firms in Kenya, which has implemented various

marketing strategies that have enabled it to continue being competitive in a highly

dynamic industry and economy. Its growth has been promoted by the sustained,

extensive demand for branded sugar and molasses and effective pricing strategies.

The company has employed generic marketing strategies for example differentiation

strategies, focus strategy and cost leadership strategy. Nevertheless, the marketing



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strategies have not been completely effective because of the company’s challenges

hence it is still not doing so well (Obado, 2005).

Sony Sugar took the initiative to adopt differentiation strategies through branding,

which helps in distinguishing the product from those of other companies due to its

unique packaging (Obado, 2005). Additionally, the firm offers assorted sugars which

are properly differentiated, and customers can choose between purchasing the Sony

Sugar White or the Sony Sugar Brown. According to Nthenya (2016), they also pack

the sugar in sachets and packets of different weights to meet the different consumer

needs. The product also contains molasses which gives the sugar an unmistakable

taste of sweetness and a unique color. Besides, the firm engages in aggressive

marketing campaigns through continuous advertisements in local media outlets, which

helps in reinforcing the product in consumers’ minds and reminding them of its

availability (Nthenya, 2016).

Moreover, the company participates in corporate social responsibility which helps in

publicity and improving the brands image (Nthenya, 2016). It sponsors local football

clubs, such as the Sony Sugar Football Club, education, healthcare, and road

construction. This paints a positive image in the market, resulting in customer loyalty

and improved sales. Further, the company has embraced competitive pricing by

putting the price of their products below the market value to get customers’ attention

and increase their sales (Nthenya, 2016). The company is able to reduce its production

costs and prices subsequently, through productive research and development. For

instance, it produces its own electricity using its molasses, which reduces its power

and manufacturing cost. Consequently, the firm is able to sell its products at lower

prices.



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Nevertheless, Sony Sugar faces a couple of challenges that hinders the success of its

marketing strategies (Nthenya, 2016). For instance, political interference is a

substantial obstacle because the firm is largely owned by the Government. The

Government appoints all the board of directors without proper vetting and since the

appointed individuals are mostly motivated by greed for money, they work for

personal gains rather than for the company’s benefits. The firm further faces financial

constraints such that management is not able to increase the factory’s capacity and

enjoy larger economies of scale (Nthenya, 2016). In the strategy implementation

process, the management faces resistance to change from employees, who are

comfortable with the status quo. Consequently, though Sony Sugar has effective

marketing strategies it faces internal challenges that hinder successful

implementation.

From Sony Sugar company, it is evident that sugar companies are struggling in the

market whether they implement marketing strategies or not. The company has

resorted to diversifying its revenue by venturing into other income generating projects

such as the production of electricity to help reduce the costs of production and offer

competitive prices. Evidently, the sugar industry in Kenya is quite hostile to local

companies, which are facing very stiff competition domestically, as well as from

cheap, contraband imports.

Statement of the Problem

The agricultural sub-sector is among the significant contributors to Kenya’s GDP. The

sub-sector serves more than 25% of the country’s GDP (Atingo & Kwasira, 2018).

The sugar industry, which is under the agricultural sub-sector, is undergoing

substantial changes globally brought about by liberalization and deregulation. Policy



11

reforms in many countries producing sugar products have caused the elimination of

agricultural subsidies and led to flexible sugar prices and marketing.

In Kenya, the sugar industry is deteriorating and is on the verge of collapse due to low

production capacities, huge debts as a result of corruption and bankruptcy, unreliable

and fluctuating weather conditions and outdated technologies among other factors.

Additionally, market competition in the sugar industry in Kenya is on the rise,

especially from foreign producers as a result of liberalization, following the

multilateral and regional trade treaties, specifically those associated with East African

Community (EAC) and COMESA (Atingo & Kwasira, 2018). The economic

liberalization due to these treaties has engendered the importation of sugar into Kenya

at minimal zero tariffs from producer member states, thus, the increased stiff market

competition for sugar companies in Kenya. Atingo and Kwasira (2018) and Koech

(2012) noted that the real problem in the sugar production sector in Kenya lies in lack

of understanding, adoption and implementation of appropriate marketing strategies

employed by sugar manufacturing companies. The companies need to understand how

different marketing strategies and practices can influence their competitive advantage

in the current stiff competition in the sugar industry environment.

Review of previous empirical literature shows that there is limited research in Kenya

on how adoption of appropriate marketing strategies influences competitive

advantage. This has severely affected the sugar manufacturing companies in Kenya.

Most previous researchers have primarily focused on production factors affecting the

industry’s stability, which include unfavorable climatic conditions, production costs

and governance factors such as mismanagement by the Board of Directors (Atingo &

Kwasira, 2018). There are insufficient marketing efforts by most companies in the



12

sugar industry in Kenya, for example in Butali and Transmara Sugar companies, yet

the industry is characterized by very stiff competition both domestically and

internationally. To this end, the study sought to explore the marketing strategies

adopted by the sugar manufacturers in Kenya to improve their performance by

earning them a suitable competitive edge in the marketplace. The study investigated if

there was a connection between marketing strategies employed by sugar

manufacturing companies in Kenya and the companies’ competitive advantage in the

existing stiff market competition both nationally and internationally.

Purpose of the Study

The purpose of this study was to determine the influence of marketing strategies on

competitive advantage of sugar manufacturing companies in Kenya, with particular

focus on Sony Sugar Company.

Objectives of the Study

1. To identify the marketing strategies adopted in Sony Sugar Company.

2. To assess how competitive advantage was measured at Sony Sugar Company

3. To examine how marketing strategies adopted by Sony Sugar Company

influenced its competitive advantage in the market

Research Questions

1. What were the marketing strategies adopted in Sony Sugar Company?

2. How was competitive advantage measured at Sony Sugar Company?

3. How did the marketing strategies adopted by Sony Sugar Company influence its

competitive advantage in the market?



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Justification for the Study

Previous studies, for instance, Badi (2018), Mbithi et al. (2015), and Obasan et al.

(2015) have suggested that effective marketing practices can give a company

competitive advantage even when the organizations face challenges. Amidst business

challenges, marketing strategies manifest themselves to achieve objectives such as

product quality, big market-share, increased profits, improved financial results and

pre-determined time for survival using appropriate marketing strategy for action. With

such kind of benefits, there is no doubt that marketing strategies are vital for an

organization. However, there has been limited research in Kenya examining the

influence of marketing strategies on competitive advantage among sugar

manufacturing companies. Due to the limited empirical research findings on the

effective marketing practices that can be adopted to enhance company competitive

advantage, there was need for further research investigating the relationship between

effective adoption of marketing strategies and competitive advantage among sugar

manufacturing companies. Therefore, this study endeavors to fill that gap by studying

in-depth the different marketing strategies their roles and effects on competitive

advantage on the sugar companies

Significance of the Study

The sugar industry is an important sub-sector in the Kenyan economy. To this end, it

is expected that the current study findings would be beneficial to various parties as

outlined below.

The findings could awaken the sugar industry players to lobby the government to

modify its policy and legal framework favorably towards the sugar industry. The

current market in the industry is very competitive, thus, the marketing strategies



14

adopted by sugar manufacturing companies are still evolving. Therefore, the

knowledge generated by this study on the appropriate marketing strategies in the

sugar industry in Kenya can be adopted by sugar manufacturing companies in Kenya

to improve their strategic marketing practices and enhance their competitiveness.

The findings would also benefit consumers of sugar because sugar is an essential

commodity in any Kenyan household and there is an increase in sugar consumption

with rising population levels. Households are not the only consumers of sugar as other

manufacturers in the foods and beverage sector also use it as an input in their

production processes. Therefore, establishing the influence of marketing strategies on

competitive advantage of sugar manufacturing companies in Kenya can help in

informing consumers about the sugar companies with appropriate marketing

strategies:

Consequently, this study’s findings are expected to share marketing strategies that

sugar producers can adopt so that they can serve their growing consumers effectively.

As a result, consumers can benefit from the study by getting improved services and

products from the manufacturers.

The current study is expected to contribute to the improvement of the overall

performance of firms in the sugar industry and the marketing strategies adopted and

used. In turn, the implementation of the recommendations can contribute to increased

productivity and higher profitability. The companies would be capable of meeting

their obligations to different stakeholders such as employees, farmers, and

shareholders. Furthermore, implementation of the proposed marketing strategies

would lead to a successful and profitable sugar sub-sector in Kenya.



15

This research contributes to the body of knowledge by validating or otherwise the

resource-based view theory (RBV), game theory in marketing strategies, and the

Ansoff matrix model by probing into the comparative degree of the significance the

company allocates resources towards having a competitive edge in the market share.

Further, this research would contribute to the literature by offering further

understanding of the mentioned theories in the context of the sugar industry in a

developing country like Kenya. It is expected that the study shall open up this area for

further research.

Assumptions of the Study

1. That each employee was exposed to different marketing strategies and that he/she

had influenced the productivity.

2. That the respondents provided accurate information as required of them.

Additionally, that the necessary assistance the research assistants sought was

accorded to them.

Scope of the study

The study was conducted at Sony Sugar Company, which is a government owned

sugar Company. Sony Sugar Company is located in Awendo Sub-County, Migori.,

Kenya. The management officers are located in Nairobi City, Kenya. The company

has 1,300 employees 800 of whom are permanent, while 500 are on contract (Sony

Sugar Human Resource Department, 2019). Therefore, the population of this study

included all employees of Sony Sugar Company, who included senior staff (the

management), middle level and lower-level employees. The study concentrated on the

marketing strategies employed by Sony Sugar Company and their influence on

competitive advantage in the market.



16

Limitations and Delimitations of the Study

Some respondents were reluctant in filling the questionnaires as required of them

because of suspicion that this kind of research is normally linked with. To curb this,

the respondents were guaranteed maximum confidentiality and by declaring that the

information provided was purely for academic purposes.

The study was conducted in one government owned sugar manufacturing company,

hence, limiting the generalization of the study results. This implies that the findings of

this study are only directly applicable to Sony Sugar Company, thus, did not serve as

an accurate representation of other government and privately owned sugar

manufacturing companies in Kenya, such as Muhoroni, Chemelil, Mumias, Nzoia,

South among others. To curb this limitation, the researcher sought to generalize the

findings so as to make them relatable to the national and global context. Therefore,

the model needs to be replicated in other government and privately owned sugar firms

in Kenya. These limitations, however, did not diminish the study’s authenticity.

Definitions of Terms

Marketing strategy: According to Obasan et al. (2015), marketing strategy relates to

the allocation of resources to support a company in gaining a favorable position in the

market. For this study, the term marketing strategy referred to the practices developed

and adopted by Kenyan sugar manufacturing as a way of gaining competitive

advantage in the rising challenges caused by the turbulent business environment in the

sugar industry.

Competitive advantage: This term refers to the degree to which an enterprise or

market entity exploits the opportunities in the market and neutralizes the competitive

threats (Sigals, Pekka-Economou, & Georgopoulos, 2013). For this study, the term



17

referred to what makes a sugar manufacturing company’s goods or services superior

to all other goods or services of other sugar manufacturing companies in the sugar

industry.

Influence: Defined as the power or capacity of indirectly or intangibly causing the

effect (Goncalves, 2013). In this study, the term referred to the power or capacity of

marketing strategies to indirectly or intangibly affect sugar manufacturing company’s

competitive advantage in the larger market in the sugar industry.

Summary

This chapter has brought out the background of the study from a general perspective

narrowing it to marketing strategies influencing competitive advantage in Sony Sugar

Company. Additionally, the chapter has outlined the research problem that the study

sought to address, the specific objectives addressed, and the research questions the

study sought to answer, its justification, its significance, scope, assumptions made and

the limitations and delimitations. Lastly, the chapter has provided definitions of the

study’s key terms



18

CHAPTER TWO

LITERATURE REVIEW

Introduction

Chapter two focuses on the existing models and theories in marketing, as well as

empirical findings from studies that previously explored the influence of marketing

strategies on the performance of business organizations. The section demonstrates the

relationship between various marketing strategies and how they earn businesses a

sustainable competitive advantage in a highly competition marketplace.

Theoretical Framework

Scholarly research in marketing strategies is primarily driven by developed theories,

concepts, and previous findings. Marketing is defined as a social and managerial

action of promoting and selling services or products by which the parties involved

obtain what they need by creating, offering, and exchanging products of value with

others. The process comprises all practices developed to generate and facilitate the

required exchange for satisfaction of human needs and wants. Marketing strategies

involve ensuring that all the marketing resources, activities, and efforts go hand in

hand with the overall organizational plan. This study is based on three theories:

resource-based theory, game theory in marketing strategies, and the Ansoff matrix.

Resource-based Theory

It is one of the prevailing theories in marketing, which is a famous model used in

predicting and explaining the basis of a company’s competitive position and its

performance (Kozlenkova et al., 2014). Past research has proven that organizational

resources are crucial to its success, but the resource-based theory was fully chosen

into use in the 1980s. Previously, it was firmly held that only the industry-level



19

factors determined the potential and performance of a business. However, researchers

later discovered that internal factors within a company, precisely its capabilities, and

resources, considerably determined profits.

Ideally, a marketing strategy should have an internally integrated and externally

focused concept that target how the business handles its customers and prospective

target market in a highly competitive environment. According to Isoraite (2016),

adoption of marketing strategies is a managerial process, whose aim is to maximize

value for shareholders by creating a competitive advantage. It achieves this by

communicating and delivering value to customers who, in return, create a long-term

relationship. The contribution of marketing activities within the company depends on

the formulation of strategies tailored to target the right consumer demand base, build

trust and connections, and earn a competitive edge in the market.

Game Theory in Marketing Strategies

Having a successful marketing strategy plays a crucial role in an industry where

competitors are targeting the same target segment with similar or identical products.

Every business or brand operating in such a competitive industry needs to choose

between the two key marketing strategies, namely product discounting or

advertisement expenditure. Product discounting involves selling the brand at a

cheaper price than the actual market rate and helps in attracting a large consumer base

that would want to buy the product at a discounted price (Kozlenkova et al., 2014).

Conversely, expenditure on advertisement assists the business to differentiate its

product, enhance a positive consumer perception and ensure that potential consumers

have knowledge regarding the value proposition of the product. The two strategies

cause the business to incur costs through losses and expenditure. Therefore, an



20

organization needs to determine the best way to balance between the two while

maximizing payoffs and profits.

Management can apply game theory to make the right decision in the case of a highly

competitive situation (Kumar & Pansari, 2016). Predictable outcomes of different

marketing strategies can be shown in the game matrix and the preferred solutions

established under different assumptions. For instance, game theory can be used to

help decide between pricing and decision making. Game theory mandates the making

of assumptions about the other players’ behavior, the most resourceful insight into

their counterstrategies and strategies, the results and rules of the game-matrix solution

incorporate data about business and sector behavior obtained from external sources

(Kumar & Pansari, 2016).) Although game theory can assist in showing the outcomes

of various marketing strategies, it is not very much likely to yield accurate solutions

to marketing challenges. The model requires selection of the appropriate set of market

variables or the available options, the anticipated outcomes, and the assumed goals of

all the firms under consideration. The inherent uncertainty in all these measures

hinders precision, just like the complexity involved in highlighting the decisions faced

by all rivals at the same time (Kumar & Pansari, 2016).

The Ansoff Matrix

The Ansoff Matrix is also known as the product-market expansion grid (Ansoff, 1965;

Ansoff, 1987). It was developed by H. Ignor Ansoff, a business manager and applied

mathematician. Harvard Business Review published the matrix in 1957 and helped

many business leaders and marketers in understanding better the risks associated with

upcoming business. It is a model used by companies to evaluate and plan their

marketing strategies for growth and continuous performance (Ansoff, 1987).



21

According to Meldrum and McDonald (1995), the matrix portrays four marketing

strategies that a firm can adopt to grow and analyzes the risks involved with each

option. The first strategy in the model is market penetration, where the business uses

its existing products to increase its market share in the existing markets. The approach

can be executed by reducing prices to attract new customers and retain existing ones.

The firm can also intensify its promotion and distribution efforts.

Secondly, there is product development where a company introduces a new product to

the current market. The strategy is implemented when a business has a long-standing

understanding of the existing market and can provide for unmet demands. Product

development can be executed by investing in intensive research and development

(Kozlenkova et al., 2014). Additionally, it can be done by obtaining the products of a

rival and merging resources to develop a new product that better meets the needs of

the current market. Product development can be done by forming strategic

partnerships with other organizations so that each can gain access to each other’s

brand or distribution channels.

For manufacturing companies, such as Sony Sugar Company, it is the products that

they produce that create a bond between them and their clients, resulting into the

amount of revenue generated. Additionally, the products of manufacturing companies

help in creating a synergy among the various internal functions of the company,

which include: production, sales and marketing, research and development, finance,

employee welfare, innovation among others. The mission of the synergy among these

internal functions of a manufacturing company is ensuring customer satisfaction.

This, therefore, justifies the use of product development strategy as one of the tools



22

that sugar manufacturing companies can employ enhance their competitive advantage

in the current highly competitive sugar industry environment.

Moreover, Ansoff matrix contains market development as a marketing strategy where

the business enters a new market with its existing product. Expansion into new

markets could mean that the firm is tapping into new geographical areas or customer

segments that had been previously unutilized. The strategy is most effective when the

organization owns advanced technology that it can use as leverage in new markets. It

can also be very successful if consumers in the new market are highly profitable by

possessing higher disposable income. McDonald (2016) affirmed that if consumer

behavior in the new market does not deviate from the current markets, market

development can be a very effective strategy. The strategy can be implemented by

catering to a different consumer segment or entering into a new domestic or foreign

market through regional and international expansion, respectively.

Lastly, there is diversification where a business decides to use its new product to go

into a completely new market. This kind of business venture where a business enters a

new market with a new product is one of the riskiest ventures since it demands

effective market and product development. However, such a risk can be managed by

the use of similar diversification, which comprises possible synergies that can be

integrated in the already existing market and the new product or market (Lopez,

2014). For example, a company that manufactures leather shoes and has started

making leather belts could decide to pursue similar diversification. Conversely, there

could be an occurrence of diversification that is not related when there are no

synergies between the newly product or market and the already existing variety of



23

businesses. For example, a sugar manufacturing company that seeks to start

manufacturing leather shoes is pursuing unrelated diversification.

Among the four marketing strategies portrayed by the Ansoff Matrix, product

marketing strategy was the most appropriate for this study. This is due to its

contribution to the improvement of the sugar manufacturing companies’ competitive

edge in an ever-increasing competitive business environment both nationally and

internationally. For a long time, sugar manufacturing companies in Kenya had been

experiencing a decline in profitability and market share. However, some sugar

manufacturing companies, such as Sony Sugar Company, have steadily formulated

and implemented product marketing strategy. Over time, this has resulted into

managing and curbing the decline in the market share and profitability. This implies

that product marketing strategy can help sugar manufacturing companies to conduct a

SWOT analysis and identify the company’s strengths, weaknesses, skills,

opportunities available, forecast on the market environment within the company’s

reach, and come up with marketing strategic and action plans (Lopez, 2014).

General Literature Review


The facets of competitive advantage and marketing strategies are intrinsically related.

Marketing strategies aims at delivering a competitive edge in the market (Kozlenkova,

Palmatier, Fang, Xioa, & Huang, 2017). It is crucial for a company to conduct

strengths, weaknesses, opportunities, and threats (SWOT) analysis in its business

market; both internally and externally. The SWOT analysis assists businesses in

developing the best marketing strategies since they are aware of the competitive

advantage, they can use in the market to compete favorably against rivals



24

(Kozlenkova et al., 2017). Further, Porter (1985) explored the essential sources of

competitive advantage, namely cost leadership, differentiation, and focus. The three

elements provide a foundation for all the processes of developing marketing strategies

and also underpin the several marketing strategies at a businesses’ disposal.

To earn a competitive edge using marketing strategies, a company has to develop a

deep understanding of consumers and discover which one motivates their purchasing

decisions and behavior (Kozlenkova et al., 2017). Additionally, the business should

position its commodities effectively and continuously evaluate the performance of the

existing positioning strategies. Marketers should also maximize customer engagement

using experiential marketing, as well as understand their role in a holistically

integrated strategic marketing plan (Tan & Sousa, 2015). Within its marketing

strategy, a business considers the marketing mix as a tactical marketing tool that helps

it acquire the desired response from its target segment. The marketing mix is an

instrument that helps in marketing, planning and execution and comprises all efforts

that can help influence the demand for its product offering positively. Of the four Ps

of the marketing mix, the current study will explore price, promotion, and place as

factors that determine the competitive advantage of an organization and boost its

performance.

Pricing as a Marketing Strategy

Price is the value placed on a product and is set after thoughtful consideration and

market research. An effective pricing strategy accounts for all market segments,

competitor practices, prevailing market conditions, consumers’ ability to pay, and cost

of production. Pricing directly affects the ability of a company to earn a competitive

edge because it directly targets a defined consumer base and is set against rival



25

companies. A pricing strategy is a model that helps in determining the best cost for a

product and earns it a competitive position in the market (Ismail, Zainol, Daud,

Rashid, & Afthanorhan, 2018). Different pricing strategies help businesses to choose

prices that maximize returns and add on to shareholder value, while taking into

consideration market demand and consumer needs.

Types of Pricing as a Marketing Strategy

This section discusses value-based pricing, price penetration, and price discounting as

determinants of a company’s competitive position.

Value-Based Pricing

The pricing strategy involves setting a price based on how much the target market or

consumer believes is the worth of the product or service. The company prices its

products based on what the customer is willing to pay for. The price is set based on

consumer demand data and interests even if the business can charge for more. Lopez

(2014) asserted that when used appropriately, value-based pricing can improve

consumer loyalty and sentiment. Additionally, it can help the organization prioritize

its customers in other areas of marketing strategy. That notwithstanding, the strategy

requires the firm to be in touch with the customer profiles and persona continually and

apply price discrimination where customers vary.

Price Penetration

Price penetration is a strategy that businesses use to swiftly gain market share by

setting an initial low price to attract customers so that they can purchase the product.

The method is typically used by new entrants in an industry so that they can compete

favorably in the market because the price is one of the facets in business that help

differentiate new market entrants from those of existing players. The rationale behind



26

price penetration is for firms to acquire a market share for themselves and build brand

loyalty (Davcik & Sharma, 2015). The strategy is used to capture or switch customers

from other competitors or generally drive rivals out of the market. Additionally, the

approach enables organizations to acquire significant demand and eventually take

advantage of the economies of scale.

Price Discounting

Most businesses use the price discounting strategy to sell the low-priced commodities

in large volumes. The main idea behind price discounting is reducing costs so that the

company can stay competitive in the market (Tan & Sousa, 2015). In particular, large

retailers can demand price discounts from their suppliers and make a price

discounting strategy successful because they purchase in bulk. Discount pricing

makes it possible to compete with such retailers. While occasional discounts and

those used to reward loyal consumers are effective, when they are used too much,

there can be a downward pricing spiral that can ruin the business’ ability to return to

full price.

Promotion as a Marketing Strategy

The marketing communication methods employed by businesses make up the

promotion function and may include strategies such as advertising, sales promotions,

direct marketing, and public relations. The technique of promotion used should suit

the product, the price, and the targeted user (Sinha & Sheth, 2018). Promotion is the

communication aspect of the entire marketing strategy as it entails the dissemination

of relevant product information to help differentiate the product from others in the

market.



27

Approaches/Methods of Promotion

There are various methods or approaches that companies use to enhance promotion as

a marketing strategy, which include advertising, sales promotion, direct marketing,

product, perceived product quality, attractive packaging, and branding.

Advertising

Advertising is one sure marketing strategy used by marketers to earn a competitive

edge in the market as a promotion method. Effective advertising makes prospective

consumers aware of the items offered by the business and when used appropriately, it

helps companies gain an upper hand. Advertising acts as a communication tool that

connects the seller with a prospective buyer. Advertising plays the role of educating,

informing, persuading, and reminding market segments about the commodities on

offer (Sinha & Sheth, 2018). When a business executes its advertising strategy

smartly and effectively, it is likely to outshine its rivals. Sugar companies in Kenya

can use vigorous and productive advertising strategies to capture the attention of a

larger market share and ensure that they earn a competitive position in both the

domestic and international markets.

Sales Promotion

Sales promotion is marketing curated to entice a prospective buyer to take a particular

step such as a request for additional information or a purchase. The strategy is

executed in short-term, thus, involves free samples, coupons, and discounts. The

method can give a company a competitive advantage as it lures new customers away

from competitors with reduced prices or free trials. When customers receive

exceptional service during the purchasing process, they are likely to make return

purchases (Familmaleki, Aghighi, & Hamidi, 2015). Further, sales promotion helps a

company to entice the reluctant potential customers by offering them discounts and



28

free samples, which may lead to repeat purchases. Sugar manufacturing companies

can employ this as a marketing strategy to lure customers away from rival firms and

earn a competitive position in the marketplace.

Direct Marketing

To ensure that a business has a competitive advantage using direct marketing,

businesses need to capitalize on creating and delivering targeted and relevant direct

messages, which, in turn, result in increased purchases and brand loyalty from

consumers (Sinha & Sheth, 2018). Kenyan sugar manufacturers can earn a

competitive edge by sending the correct offer to right consumers and at the right time.

To maximize on the strategy, marketers should gather and analyze relevant

information to portray a clear personalized and attractive picture to consumers.

Product

A product refers to a commodity that is tangible or a service that is intangible, which

specific consumer demands that might satisfy a want or a need. Marketers need to

understand the market gaps and problems the product is attempting to solve so that

they can tailor their marketing strategy along with the product features. Isoraite

(2016) affirms that the benefits offered by the item should be understood and used as

a selling point. Further, the prospective consumers of the commodity should be

identified and understood beforehand.

Perceived Product Quality

The perceived quality of a product refers to the consumer’s judgment about an

organization’s general superiority and excellence, as well as the quality of the

commodity. There is a direct connection between the perceived product quality and

consumer satisfaction. Product quality as an essential determinant of the buyers’



29

satisfaction is a significant pointer of competitiveness achieved through repeat sales

and superior economic returns (Kumar & Pansari, 2016). The perceived quality of a

product by customers is related to the satisfaction expected when the commodity is

compared with a certain level of performance. To this end, the company’s products

and services need to supersede the average standard in the industry. When the

perceived quality of a product increases, the business enjoys higher brand loyalty, and

this earns it a competitive position in the marketplace. Sugar producing firms in

Kenya need to raise their perceived product quality so that they can increase their

customers’ satisfaction and ultimately win their loyalty.

Attractive Packaging

Consumers view the packaging design of an item as part of the product they are

purchasing. According to Isoraite (2016), attractive packaging design can create a

competitive advantage, especially when the design outshines that of rival products.

Ideally, the packaging of an item should communicate and offer convenience to the

buyer, user and the distributor. The pack plays the role of a silent sales representative

by capturing their attention and highlighting essential details as well as giving helpful

tips on the usage of the product. Packaging design tends to be more evolutionary than

revolutionary; thus, marketers ought to review it regularly so that they can keep up

with industry trends and dynamics. Good packaging and attractive design can deliver

a competitive edge to sugar companies in Kenya if they utilize it appropriately as part

of their marketing strategies.

Branding

Branding involves the process of creating and maintaining a brand, through a

summation of all the strategies a business employs to communicate with its target



30

audience and attain a sustainable competitive advantage. The brand of a company is

the most critical asset of an organization and the greatest battle in marketing is usually

between brands. Therefore, all players in the marketplace strive to possess the largest

market share by creating and sustaining a powerful brand. Branding is an excellent

determinant of an organization’s competitive position in the industry because it helps

distinguish the company’s product from those of rival firms in a unique manner that is

relevant to its targeted market (Sinha & Sheth, 2018). Additionally, it increases the

product perception among consumers, thus, building brand loyalty. Branding is a

beneficial marketing strategy for any Kenyan sugar company as it helps in product

differentiation and building loyalty due to the distinct recognition it has earned in the

market.

Place as a Marketing Strategy

A place is a particular position of the marketing mix elements that include distributing

channels, storage facilities and forms of transportation, assortment, logistics and

management of inventory control. Marketing strategy implementation does not

depend only on production goals achievement, price fixing or promotion. It also deals

with a productive distribution process that allows the company to meet the goal of

delivery of the item in the right place and at the right time. According to (Badi, 2018)

Place is the mechanism through which goods and services are moved from the

producer or manufacturer to the consumer. Place is not only about the point of sale, it

is about the channels of distribution and consideration of movement of raw materials

to the customer. As such, Place as marketing mix function is one of the most

functional areas in terms of the process’s aspect.



31

Channels

A distribution channel is defined as activities and the processes involved in moving a

product from the producers to the consumers. It involves four main distribution

channel types: First is direct distribution where the company directly provides the

product to consumers, hence it owns all distribution channel elements, or it sells

through specific retail location. Direct distribution can also be through Internet sales

or one-on-one meetings. Second is indirect distribution where a business enterprise

makes use of intermediaries to avail its products to the consumers. Additionally, the

business enterprise may sell its products to the wholesalers, who then sell to the

retailers. Third is dual distribution where a business enterprise makes use of both

indirect and direct methods of selling its products. This implies that the products can

be sold directly from the business enterprise to the consumer, or the business

enterprise makes use of intermediaries to penetrate its products to the consumers.

Fourth is the reverse distribution, whereby a business enterprise encourages

consumers to send a product directly to the producer.

Therefore, a company can have a competitive advantage if it chooses the right

distribution channel and intermediaries in that time and resource wastage through the

channel can be reduced, it can reach small and large stores in as many locations as

possible both in remote rural outlets, urban center outlets and even petrol stations.

Measures of Competitive Advantage

A business is said to have achieved sustained competitive advantage when it is

generating more value economically than the marginal company in the market and

when other firms cannot duplicate the benefits of its marketing strategy. Kozlenkova

et al., 2017) report that an organization attains a competitive edge when it is capable



32

of creating more economic value than the competitor in the industry. Some of the

factors that would determine whether a sugar company has a competitive position in

the industry through marketing strategies include pricing, promotion, place and the

product itself.

There is a lot of literature found on measurements of competitive advantage in

relation to various sectors or industries. Competitiveness could be analyzed by using

past performance indicators or potential competitiveness indicators like the market

share, productivity, which is either land productivity, labour productivity or capital

productivity, product cost, gross margin, returns on assets, net income, unit cost ratio,

total factor productivity, financial performance, profitability among many others

(Sachitra, 2017). Any measurement indicator of a firm’s competitiveness should take

into account a long-term rather than short-term orientation.

A competitive advantage distinguishes a company from its competitors. It contributes

to higher prices, more customers, and brand loyalty. Establishing such an advantage is

one of the most important goals of any company. In today’s world, Competitive

advantage is essential to business success, without it, companies will find it difficult

to survive. Competitive advantage enables a firm to earn profits that are higher than

the average profit earned by its competitors (Sachitra, 2017).

Organizational Culture as the Intervening Variables between Marketing Strategies and


Culture is defined as a system of rules, values, suppositions, and attitudes that come

up as a result of collective experiences among employees and that they can help in

determining the meaning surrounding the world, thus, leading to specific behavior of

an employee (Gelfand, Erez, & Aycan, 2007). The employees of any particular



33

company or organization can ascribe meanings to the external and internal happenings

that the company holds for them through the use of structures that are explainable. As

noted by Janićijević (2012), the kind of image that an organization portrays to its

members largely determines the interactions, behaviors, and actions of the employees.

Organizational culture is a system of collective informative framework that members

ascribed to a particular organization share, based on the values they are attribute to,

the organization’s events and occurrences, and the people within and outside the

organization. Therefore, the culture that is manifested within an organization implies

that every member comprehends the entity and the suitable ways of handling,

changing, and functioning. Gelfand et al. (2007) noted that the manner in which

employees and the management of an organization comprehends the reality of the

organization and adapt to it is influenced by the traits of several factors that describe

the organization and the facet of management. Such traits include; organizational

schemes of motivation, strategy, structures, organizational learning, and leadership

styles. Therefore, organizational culture contributes in structuring key components of

organization and management, thus, affecting organizational performance

Empirical Literature Review

There are various studies and research that have been previously done by other

scholars in relation to marketing strategies and competitive advantage in the

manufacturing industry. This section outlines and discusses some of the relevant

previous studies in the relation to the topic of this study.



34

Adewale, Adesola, and Oyewale (2013) did a study investigating how marketing

strategy influenced performance of selected SMEs in Oluyole Local Government,

Ibadan, Nigeria. The study findings indicated that marketing strategies employed by

SMEs in Oluyole Local Government were significantly independent and they

determined business performance of the SMEs. However, Adewale et al. observed

that promotion, as a marketing strategy, did not have any positive significant

influence on the performance of the SMEs. This signals that business enterprises such

sugar manufacturing companies should put more emphasis on marketing strategies

such as product quality, appropriate location, pricing of their products, attractive

packaging of products, customer loyalty, and provide customers with other benefits

Ndlangamandla, Kibirige, and Rugambisa (2016) conducted a study on the

determinants of competitiveness of the Swaziland sugar industry. The study revealed

that the factors which enhance competitiveness of the sugar industry include;

networking and relationship with clients, the way businesses approach the human

resource factor, product quality, and availability of unskilled labour. Some factors that

have a major constraining effect on the competitiveness were the small local market

size, cost of transport, and cost of supply of inputs. Ndlangamandla et al.’s (2016)

study concluded that government in consultation with the industry representatives

should consider development and implementation of an industry policy strategy for

the sugar industry intended to ensure its survival. In order to counteract the effects of

global market prices and the exchange rate. Therefore, the current study was specific

on the effect of marketing strategies on competitive advantage of sugar manufacturing

industries.



35

Badi (2018) did a study focusing on the impact of marketing mix on the competitive

advantage of the SME sector in the Al Buraimi Governorate in Oman. Study findings

showed that all of the marketing mix elements (product, price, place, and promotion)

have a significant impact on achieving competitive advantage in the case of Al

Buraimi’s SMEs (p value for all marketing mix elements is less than α = .05). The

most effective element when it comes to achieving competitive advantage was price.

Therefore, Badi’s (2018), study recommended that the SME sector in Al Buraimi

should develop its product’s quality, distribution channels, and promotion policies to

face the local and international competitors. This could also be the same case in sugar

manufacturing companies in Kenya whereby sugar products’ quality, distribution

channels, and promotion policies should be developed and strengthened to face the

local and international competitors, thus, enhancing competitive advantage. Despite

Badi’s (2018) study examining the impact of marketing matrix (product, price,

promotion, and place) on competitive advantage, focus was on SMEs while the

current study’s focus was on sugar manufacturing companies.

A study was conducted by Khushk, Memon, and Saeed (2011) at Technology

Transfer Institute, Tandojam, to analyse sugar industry competitiveness in Pakistan.

For this study data was collected both from primary and secondary sources. The

primary data were collected from sugarcane growers and sugar industry using a well-

structured pre-tested questionnaire from Sindh, Punjab and NWFP (now Khyber

Pakhtunkhwa). Secondary data were collected from published annual reports of

Pakistan Sugar Mills Association (PSMA). As per the findings, the competitiveness of

sugar industry indicates that sugar industry of Punjab had the advantage in total

quantity of sugar production. Sugar industry of Sindh had the advantage in extraction

rate of sugar per ton of sugarcane and industry of NWFP had advantage in molasses



36

recovery percentage. Transportation was found as affecting the production costs of

commodities. The study concluded that low sugar recovery percentage was the most

serious problem faced by sugar industries followed by de-zoning. While Khushk et al.

(2011) focused on the analysis of sugar industry competitiveness in Pakistan, the

current study examined the influence of marketing strategies on competitiveness of

sugar manufacturing companies.

In Kenya, the first most relevant study to the current research was conducted by

Kassamani (1999), who focused on the state of strategic marketing in Kenya’s sugar

companies. This study established that in Kenya, there was no serious marketing that

was done in most of the sugar manufacturing companies. However, this could not be

the case in the current 21st century where there is stiff competition in the market on

sugar products. Nevertheless, Kassamani noted that while the sugar industry in Kenya

faced competition especially from imports, domestic sugar manufacturing companies

did not regard themselves as real competitors fighting for similar markets as their

production was often below the required consumption.

As a result, many sugar manufacturing companies in Kenya did not see the need of

spending resources on marketing strategies. Kassamani’s (1999) study leaves a

research gap on the relationship between marketing strategies and competitive

advantage since the main focus was only on the state of strategic marketing in

Kenya’s sugar companies and it had nothing to do with marketing strategies nor

competitive advantage. The current study filled the research gap.

Hussein (2011) conducted a study on competitive strategies employed by Mumias

Sugar Company in Kenya to develop competitive advantage. This research was

conducted through a case study to enable the researcher to explore the matter in depth.



37

Primary data was collected using the interview guide method. Study findings

indicated that very innovative strategies were applied by the company in order to

sustain sales and market penetration. Further, the study found out that Mumias Sugar

Company’s strategy of ensuring that quality management systems are in place was

critical in meeting international quality standards.

Besides, Hussein’s (2011) study found that Mumias Sugar Company corporate social

responsibility strategy was one of the best in the sugar manufacturing industry in

Kenya. This study therefore recommended that in order to avoid many impediments,

the Mumias Sugar Company should make sure that its marketing strategies are

sufficient to enable administration and management prudence and getting them advice

promptly. This could be a replica in the current study’s case study of Sony Sugar

Company. Additionally, the current study provides findings on the influence of

marketing strategies on competitive advantage which Hussein’s (2011) study did not

establish since its main focus was on competitive strategies employed by Mumias

Sugar Company in Kenya to develop competitive advantage and not marketing

strategies.

Mbithi, Muturi, and Rambo (2015) also did research on market development strategy,

and they found out that most sugar companies in Kenya operate within Kenya only in

order to help meeting the sugar deficit in the country. COMESA regulations provide

room for export, but this can only be possible if the full utilization of capacity is

achieved in the operations of the factory. The study further verified that opening up

more channels of distribution through agencies and promotions has proven to be the

current approach to the acquisition of new market regions without necessarily opening

up business outlets. They concluded that repackaging in different amounts has been



38

found to lead to reaching new market segments that have not traditionally used the

brand.

Misigo (2017) did a study on the influence of strategic capabilities on competitive

advantage of sugar companies in Western Kenya. The study adopted descriptive and

correlation research designs and the target population was composed of six sugar

companies from Western Kenya and the respondents were 88 senior and middle level

managers. Both descriptive and inferential statistics were used to analyze the data.

Hypothesis testing established that government regulatory policy statistically

significantly moderates the relationship between strategic capabilities and competitive

advantage of sugar companies in Western Kenya. The key conclusion drawn from

Misigo’s (2017) study findings was that the Government regulatory policy determines

the extent to which the sugar companies in Western Kenya enjoy competitive

advantage. It is recommended that the Government should encourage sugar

manufacturing companies to develop and adopt more advanced marketing strategies

in order to enhance their local and international competitive advantage. Thus, the

current study focused on Misigo’s recommendation by examining the influence of

marketing strategies on competitive advantage of sugar manufacturing companies in

Kenya.



39

Conceptual Framework

Figure 2.1 shows this study’s conceptual framework based on the relevant literature

reviewed.

Figure 2.1: Conceptual Framework

Source: Author (2021)

Discussion

Figure 2.1 shows the connection between the study variables. Marketing strategies

that sugar companies employed were the independent variables for this study. Review

of literature revealed two main marketing strategies played a major role in

determining the competitive advantage of a sugar company, they include marketing

mix (4p's) and sales volume. Effective implementation of the two marketing strategies

leads to improved competitive advantage, which was measured in terms of

productivity and market share/growth. In this case, therefore, competitive advantage

was the dependent variable for this study.

However, other intervening factors influenced the manner in which the

implementation of marketing strategies enhanced completive advantage. These factors

were the intervening variables of this study and they included organizational culture


Marketing mix

(4p's)

Sales volume

Organizational culture


Productivity

Market growth/share

Independent Variables Dependent Variable

Intervening Variables



40

and strategic leadership. The shared beliefs, customs, attitudes, philosophy,

expectations, and experiences of an organization as articulated in the values, vision

and mission constitute the organizational culture of a company. This influences how

an organization adopts and implements its marketing strategies with the goal of

gaining competitive advantage in the market. On the other hand, strategic leadership

deals with the creation of an organization’s core elements, such as the long-term

vision and mission. Therefore, an organization’s strategic goals and management

approach defines an organization’s strategic leadership. When an organization has a

strategic management approach that recognizes the importance of embracing and

investing in marketing strategies, then it stands a better chance of gaining competitive

advantage in the market.

Summary

This chapter has largely highlighted two critical components of the study: assessment

of literature along with conceptual framework. Evaluation of literature was broken

down into theoretical framework whereby very important theories applicable to the

study were discussed, and empirical literature review where the focus was on the

various studies that have been undertaken in the general area of the topic under study.

The next chapter provides the research methodology adopted by this study.



41

CHAPTER THREE

RESEARCH METHODOLOGY

Introduction

This chapter presents the research methodology used in the study. The first section

defines and describes the research design used in detail. The second gives a

description of the population for this study as well as providing a criterion for sample

size determination. The third describes the sources of data and how they were

collected. The fourth looks at the diagnostic tests to ensure that there is no violation of

the Ordinary Least Square (OLS) assumptions while the last provides the approach

used to measure the data in order to meet the study’s objectives.

Research Design

Research design is a strategic plan that is employed in investigating the relationship

between the variables under a study with the aim of addressing the objectives of that

study (Cooper & Schindler, 2011). Research design is the structure of the research,

that is, the component that comprises of all the essentials in a research project

(Kombo & Tromp, 2006). This study adopted a descriptive research design.

According to Bryman and Bell (2003), a descriptive research design involves

planning, organizing, collection and analysis of data so as to provide information

being sought. Mugenda and Mugenda (2003) also noted that descriptive research

design describes and portrays characteristics of an event, situation of a group of

people, community, or a population.

Therefore, descriptive research design enabled the researcher to obtain the

information that describes the influence of marketing strategies employed by Sony



42

Sugar Company on its competitive advantage in the market. Cooper and Schindler

(2011) argued that descriptive research design aims at providing information relating

to the current status of the phenomena as it exists. Therefore, descriptive research

design helped the researcher to obtain real-time information relating to the influence

of marketing strategies employed by Sony Sugar Company on its competitive

advantage in the market.

Population

Population refers to a set of individuals, subjects or objects that display a similar

characteristic to which research seeks to generate the results of the study (Kothari,

2004). This study’s population included employees and the management of Sony

Sugar Company in Kenya. According to the Human Resource Department of Sony

Sugar Company (2019), the company has 1,300 employees; 800 of whom are

permanent and 500 on contract. Therefore, the population of this study comprised all

the 1,300 employees of Sony Sugar Company who include senior staff (the

management), middle level, and lower-level employees.

Target Population

A target population is well-defined as the population with observable characteristics

to which a researcher wants to generalize the results (Mugenda & Mugenda, 2003).

The target population in this study was permanent employees of Sony Sugar

Company, who include the top management, middle level, and lower-level

employees. The researcher targeted permanent employees only because of the

assumption that they were more knowledgeable and insightful when it comes to the

marketing strategies employed by the company and their influence on competitive

advantage as compared to contract employees who were in the company for a short



43

period. According to the Human Resource Department of Sony Sugar Company

(2019), the company had 800 permanent employees, and this figure was the target

population for this study.

Sample Size

A sample is a section of the population that has been selected by use of scientific

procedures (Kothari, 2004). According to Saunders, Lewis, and Thornhill (2009),

sample size is very important in making inferences about a population especially in an

empirical study. Generally, when choosing a sample size, considerations on the

budget must be made since it is statistical considerations (Sekaran & Bougie, 2010).

Sample sizes larger than 30 and less than 500 are appropriate for most empirical

research (Sekaran & Bougie, 2010).

In a study, the number of respondents accepted depended on the type of research

being carried out, that is, whether it was correlational, descriptive, or experimental

(Sekaran & Bougie, 2010). In descriptive research, 10-30% of the target population is

adequate for a sample size (Mugenda & Mugenda 2003). Due to budgetary

considerations, including time and financial limitations, this study used 15% of the

target population. Since the target population for this study was 800 permanent

employees of Sony Sugar Company, then the sample size for this study was 120 (15%

of 800) respondents, as shown in Table 3.1.

Table 3.1: Distribution of Target Population and Sample Size

Respondents’ cluster Target Population Sample Size

(15% of the target

population)

Middle and lower employees

(Primary respondents)

780 117

Senior staff: Directors & Managers

(Key informants)

20 3

Total 800 120

Source: Human Resource Department of Sony Sugar Company (2019)



44

Sampling Techniques

Sampling is defined as the statistical process used in research in selecting suitable

representative individuals of the larger population of the study (Mugenda, 2008). A

criterion that is used by the researcher to guide in the selection of a sample is referred

as the sampling technique (Mugenda, 2008). A sampling procedure defines the rules

that specify how the sample size will be drawn. In this study, simple random sampling

and purposive sampling were used in selecting respondents of this study.

Simple random sampling is a completely random method of selecting a sample in

which each element and each combination of elements in the population have an

equal probability of being selected as a part of the sample (Mugenda, 2008). In this

study, simple random sampling was used to select the 117 respondents (middle and

lower-level permanent employees). The 117 respondents were randomly selected to

fill the questionnaires. This implies that every middle and lower-level employee of

Sony Sugar Company had an equal chance of being selected to participate in this

study.

Purposive sampling implies that a sample is chosen due to its relevance to the purpose

of the study topic rather than their representativeness, which determines the way in

which the population to be studied is selected (Neuman, 2006). In purposive

sampling, the decision relies on the judgement of the researcher when it comes to

selecting the units (e.g., people, cases/organizations, events, pieces of data) that are to

be studied. In this study, purposive sampling was used to select the three (3) key

informants, who included one (1) Director of Marketing, and two (2) managers in the

Sales and Marketing Department. The three were selected based on the researcher’s

knowledge of the target population. In addition, the three key informants provided



45

relevant information concerning the marketing strategies employed by Sony Sugar

Company and their influence on competitive advantage in the market.

Types of Data

Data in research is categorized into two broad categories: primary and secondary

data (Kothari, 2011). Primary data is raw data which is collected from the

respondents and has not been previous used while secondary data is data obtained

from a third party and is usually customized for different purposes. This study used

primary data, which was obtained through data collection exercise. The primary data

was collected using questionnaires and in-depth interviews and it was both

quantitative and qualitative. Quantitative data was collected through closed-ended

questions in the questionnaires, while qualitative data was obtained through in-depth

interviews with the key informants and open-ended questions in the questionnaire.

Data Collection Instruments

Data collection instruments involve the techniques used to collect data from the

respondents (Obwatho, 2014). There are many methods of data collection, and the

choice of a tool and instrument depends mainly on the attributes of the subjects,

research topic, problem question, objectives, design, expected data and results

(Mugenda, 2008). For this study, the researcher used questionnaires and in-depth

interview guides.

Questionnaires

Kothari (2004) noted that the use of a questionnaire in collecting primary data is by a

large extent the most broadly used in most research studies. This study used

structured questionnaires to collect primary data from the 117 middle and lower

employees of Sony Sugar Company. The questions in the questionnaire were designed



46

in a manner that most of them were quantitative (closed-ended) while a few were

qualitative (open-ended). Quantitative (closed-ended) questions provided precise data

on the marketing strategies, factors that determine competitive advantage and the

influence of marketing strategies on competitive advantage in Sony Sugar Company

in Kenya. Open-ended (qualitative) questions were used to collect respondents’ views,

opinions and thoughts on any other marketing strategies, factors that determine

competitive advantage, and influence of marketing strategies on competitive

advantage in Sony Sugar Company in Kenya.

In-depth Interview Guides

In-depth interview (IDI) guides were used to collect in-depth information with the

three purposively selected key informants, comprising; the Director of Marketing and

two managers in the Sales and Marketing Department. Therefore, three in-depth

interviews were conducted. The interviews provided more in-depth and insight

information on the marketing strategies, factors that determine competitive advantage

and influence of marketing strategies on competitive advantage in Sony Sugar

Company in Kenya.

Data Collection Procedures

According to Khan (2012), data collection refers to the process of collecting and

weighing feedback on directed variables in scientific approaches to enable an analysis

that answers the research questions. Prior to actual data collection, the researcher got

research approvals from the relevant authorities, which included Daystar University

Ethics Review Board (DU-ERB), the National Commission for Science, Technology

and Innovation (NACOSTI), and the Administration of Sony Sugar Company.



47

After obtaining all the research approvals, the researcher recruited and trained three

professional research assistants who helped in administering the questionnaires during

the actual data collection. Then the researcher, together with the research assistants,

conducted a reconnaissance to Sony Sugar Company to familiarize themselves with

the study site and arrange with the Company’s administration on the logistics of

collecting data from the employees.

The study employed ‘drop and pick’ method during questionnaire administration.

This implies that the respondents were given questionnaires to fill for themselves and

the research assistants collected the questionnaires after they had been duly filled.

However, before leaving the respondents with questionnaires to fill, the research

assistants explained to them the purpose of the study and what was expected of them.

Then the research assistants randomly distributed the questionnaires to 117 lower and

middle level employees as per the arrangements with the administration of the

company. The respondents and the research assistants had a mutual agreement on the

appropriate time to pick fully filled questionnaires, but it was within the time schedule

of the study. Questionnaire administration took a period of five working days.

The in-depth interviews with three key informants were conducted by the researcher

in their offices. First, the researcher booked appointments with the three key

informants who specified the appropriate time they were available for the interviews

but within the time schedule of the research. The researchers interviewed each of

them in their respective offices and wrote notes on their responses.

Pretesting

Pretesting certifies that items in the research instrument(s) are clearly detailed and

have the same meaning to all respondents (Mugenda & Mugenda, 2003). The pretest



48

sample in a descriptive study is between 1% and 10% depending on the sample size,

and the respondents that participate in the pretest exercise should not be part of the

respondents who participates in the actual data collection exercise (Mugenda &

Mugenda, 2003). In light of this information, the researcher conducted the pretesting

exercise with 11 respondents (lower and middle employees) that were drawn from

Mumias Sugar Company, which had similar characteristics as Sony Sugar Company.

In addition, the researcher conducted one in-depth interview with a senior staff of

Mumias Sugar Company.

Reliability and Validity of the Research Instruments

Validity is the degree to which results obtained from the analysis of the data

correspond to the objectives of the study (Mugenda, 2008). The study made use of

both construct validity and content validity. Construct validity was achieved by

dividing the research instrument into sections based on the objectives of this study.

On the other hand, content validity was achieved by closely examining the research

instruments to check the relevance of the questions in terms of their objectivity,

meaning and clarity. In addition, supervisors were given copies of the research

instruments to ensure that the questions were valid enough to achieve the objectives

of the study. Based on the findings from the evaluation of the research instruments,

the research instruments were adjusted accordingly before actual data collection

commenced.

For reliability, this study applied Cronbach test analysis, whereby, Cronbach’s alpha

coefficients were used to a measure the average internal consistency of the items in

the questionnaire, this is, the degree to which the questionnaire can yield consistent

results if this research can be repeated again (Mugenda, 2008). The findings of the



49

Cronbach alpha test analysis for all the variables that were on a Likert scale are

presented in Table 3.2.

Table 3.2: Cronbach’s Alpha Coefficients for Multiple Likert Scale Items

Factor Cronbach's Alpha No. of Items Verdict

Factors that determine

competitive advantage

.916 20 Excellent

Influence of marketing strategies

on competitive advantage

.815 7 Good

Measures of Competitive

Advantage

.828 2 Excellent

Table 3.2 shows that Cronbach's alpha coefficients for the variables that were on

multiple Likert scale were 0.916, 0.815, and 0.828 for factors that determine

competitive advantage, influence of marketing strategies on competitive advantage

and measures of competitive advantage respectively. Since all the Cronbach's alpha

coefficients were more than 0.7, it implies that the level of internal consistency for all

the items that were on multiple Likert scale was acceptable, thus, they were reliable

and could yield the same results whenever they are used. This means that the

questionnaire that was used in this study was reliable, thus, the findings were

accurate, valid, and relevant to this research according to the purpose of this study.

Data Analysis Plan

According to Kothari (2004), data analysis is a process of system data analysis,

organizing and the information obtained arranging them to facilitate coding and

tabulation. Quantitative data was cleaned, coded, and finally entered into SPSS

version 25.0 for analysis. Both descriptive (frequencies and percentages) and

inferential (regression) analysis were conducted.

Qualitative data from the open-ended questions in the questionnaire were analyzed

using thematic approach, where responses from each question were grouped into



50

themes that were coded, entered into SPSS version 25.0 and analyzed like quantitative

data. Qualitative data from in-depth interviews were analyzed manually, and then

reported as narratives and direct quotes.

Descriptive statistics was critical in providing information about the distribution of

the data, that is, describe the findings obtained without making any comparisons,

while inferential (multiple regression) analysis was performed to show the influence

of strategic marketing practices on the performance (competitive advantage) of sugar

manufacturing companies in Kenya. The panel regression model was specified in the

form:

𝑌𝑡 = 𝛽0 + 𝛽1𝑋1 + 𝛽2𝑋2 + 𝛽3𝑋3 + +𝜀………………….…3.1

Where:

Y=Competitive Advantage

X1=Promotion

X2=Pricing

X3=Product

X4 = Place

Ethical Considerations

In research, there are various acceptable and unacceptable behaviors, thus, the

importance of having research ethics. Research ethics are simply standards or norms

of conduct that help researchers to distinguish the wrongs and the rights when

conducting a research (Stringer,i2008).

Firstly, the researcher obtained research approvals/permissions to conduct research

from relevant authorities, which included DE-ERB, and NACOSTI. Using the

approvals, the researcher sought permission from the administration of Sony Sugar



51

Company to administer questionnaires with their employees and conduct in-depth

interviews with the director and two managers in the Sales and Marketing

Department. This ensured compliance with the laws of the country regarding

academic research.

Secondly, the researcher ensured that all parties that participated in this research

upheld utmost confidentiality and showed unquestionable integrity. The researcher

sought the consent of the respondents and assured them of anonymity and

confidentiality. Their names or contacts were not included in the research

instruments. The researcher also assured respondents that the information they

provided was for academic purposes only.

Summary

This chapter has provided a detailed discussion on the methodology that was used in

the study. It has described the type of research design used, the target population,

sample size, sampling design, research analysis and presentation of the research

findings. Additionally, it has described the procedure used in gathering the research

data, the data collection instruments used and the pre-testing. The chapter has also

captured a detailed data analysis plan and the research ethics that this study will take

into considerations. The next chapter presents the study findings, analysis, and

interpretation.



52

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS, AND INTERPRETATION

Introduction

This chapter presents data analysis, presentation, and interpretation of the findings.

The study was designed to assess the influence of marketing strategies on competitive

advantage of sugar manufacturing companies in Kenya with specific reference to

Sony Sugar Company. The chapter presents the characteristics of the respondents, the

analysis of the marketing strategies in Sony Sugar Company.

Response Rate

The study targeted a sample of 120 respondents, which included three (3) key

informants (Managers/Directors of Sony Sugar Company) and 117 middle and lower

employees. Out of the 117 questionnaires distributed, 107 of them were duly filled

and returned. In addition, two (2) out of the three (3) targeted key informants

participated in the in-depth interviews. This makes the total response rate for this

study 109 (91%) respondents out of the overall targeted sample of 120 respondents.

Figure 4.1 shows the overall response rate for this study.

Figure 4.1: Response Rate

9%

91%

Questionnaire response rate

Ruturned

Not returned



53

As per Figure 4.1, the overall response rate for this study is 109 (91%). Mugenda and

Mugenda (2003) noted that a response rate of 50% in descriptive research is adequate

for analysis and reporting, 60% is good and 70% or more is excellent. Therefore, this

study’s response rate of (91%) is excellent. This response rate confirms that the

respondents (employees of Sony Sugar Company) participated in this study willingly

and they correctly responded to the questions.

Analysis and Interpretation

Respondents’ General Background Information

The general background information about respondents is very important in most

social studies because the information enables the researcher (s) to gain a general

understanding of the respondents’ personal profile that could have determined the

manner in which they provided their responses. The general background information

of the respondents that this study was interested in comprised one’s current position in

the company, duration in the company and period worked in the current position.

Respondents’ Current Position in the Company

The study sought to know the current position of the respondents. This section

highlighted the department of work that1participants worked1with and the1results

were as presented1in the1Table 4.1.

Table 4.1: Current Position in the Company

Frequency Percent

Junior/lower-level staff 26 24.3

Middle level management 72 67.3

Senior level management 9 8.4

Total 107 100.0

The study revealed that the respondents held various positions. It was noted that 26

(24.3%) of the respondents were junior staff, 72 (67.3%) were middle level



54

management, and 9 (8.4%) were senior staff. It is, thus, clear from the above that most

participants were from middle and lower-level management, which was the primary

target population for this study. This finding further depicts fair representation from

various management levels.

Period Respondents Had Worked in the Company

The study sought to know the period respondents had worked with Sony Sugar

Company. The findings were as shown in Table 4.2.

Table 4.2: Period Worked in the Company

Frequency Percent

Less than 5 years 2 1.9

5-10 years 42 39.2

11-15 years 42 39.2

Over 15 years 21 19.7

Total 107 100.0

As shown in Table 4.2, 42(39.3%) of the respondents had worked at Sony Sugar

company for a period of 5-10 years, 42 (39.2%) had worked for between 11-15 years,

while 21 (19.6%) had had worked for more than 15 years. From the findings, almost

all the respondents at 105 (98.1%) had worked with Sony Sugar company for over 5

years, an indication and likelihood that they were more informed on how marketing

strategies affects competitive advantage in the marketing industry.

Period Respondents Had Worked in the Current Position

The study was interested to know how long the respondents had worked in their

current positions in the company. The findings were as presented in Table 4.3

Table 4.3: Period Worked in the Current Position

Frequency Percent

Less than 5 years 2 1.9

5-10 years 46 43.0

11-15 years 54 50.5

Over 15 years 5 4.7

Total 107 100.0



55

As shown in the Table 4.3, most of the respondents at 36 (39.1%) had worked in their

current position for more than 11 years, 36 (39.1%) had served for a period of 6-10

years, while 20 (21.7%) had served for not more than 5 years. Based on this finding, it

is probable to conclude that majority of the respondents had vast experience with the

company’s operations, thus, it was evident that they were in a better position to give

credible information relating to this study subject.

Marketing Strategies Adopted by Sugar Companies

The first objective of the study was to determine the market strategies adopted by

Sony Sugar Company. To achieve this objective, the researcher asked respondents to

highlight the marketing strategies that had been adopted by Sony Sugar Company to

enhance their competitive advantage. The findings were as presented as shown Table

4.4.

Table 4.4: Market Strategies Adopted by Sugar Company

Frequency Percent

Product 78 72.9%

Pricing 66 61.7%

Promotion 65 60.7%

Place 25 23.4%

Sales volume 17 15.9%

From the study finding shown in Table 4.4, the main marketing strategies that had

been adopted by Sony Sugar Company to enhance their competitive advantage were

product strategy at 78 (72.9%), pricing strategy at 66 (61.7%), promotion strategy at

65 (60.7%), place strategy at 25 (23.4%), and sale volume strategy at 17 (15.9%).

The respondents were further asked if there were other marketing strategies used by

Sony Sugar Company to enhance their competitive advantage. Five (4.6%) of the

respondents indicated that Sony Sugar Company had used the sponsorship deal Sony

Sugar Football Club to market itself countrywide. In addition, 3 (2.8%) respondents



56

indicated that the company had also sponsorship deals with students in various

schools, and this has been used as a marketing strategy. Finally, 2 (1.8%) respondents

indicated that the company had used branding of buildings in various towns as a

marketing strategy to boost their competitive advantage.

Further findings from in-depth interviews with key informants revealed that Sony

Sugar Company had used product strategy, promotions, sales volume, sponsorships,

and pricing as marketing strategies. For instance, when the Director of Sales and

Marketing Department was asked to highlight the marketing strategies used by the

company, he said, as follows:

Our company mainly uses product brand, sales volume, relative pricing of our

products, and promotions/sponsorships to market us. These strategies have

really worked for us for many years now.

The Manager of Marketing echoed the Director by saying the following:

Among the marketing strategies we use to boost our competitive advantages

include; promotions, pricing, discounts based on sales volume, cash payments,

use of social media platforms, service strategy, and personal branding. In

addition, we have sponsored a football club and many students in secondary

school and colleges. All these have helped us gain some competitive

advantage over our competitors.

These findings demonstrated that Sony Sugar Company used various marketing

strategies to boost their competitive advantage.

Measures of Competitive Advantage

Literature review revealed that there are many ways a company can use to measure its

competitive advantage based on the sector or industry the company operates.

Competitiveness could be analyzed by using past performance indicators or potential

competitiveness indicators, such as the market share, productivity, profitability,

returns on assets (RAO), unit cost ratio, financial performance, among many others.



57

Therefore, this study sought to address the second objective of this study by assessing

how competitive advantage of Sony Sugar Company was measured. In this regard, the

respondents were asked to indicate the extent to which they agreed or disagreed with

the statements in relation to measures of competitive advantage in reference to Sony

Sugar. Study findings were as shown in Table 4.5.

Table 4.5: Measures of Competitive Advantage

Statements 1 2 3 4 5 Total

Overall, our company’s productivity is higher compared

to competitors

N 4 19 8 43 33 107

% 3.7 17.8 7.5 40.2 30.8 100

Overall, our company’s market share is bigger compared to

competitors

N 2 22 9 38 36 107

% 1.9 20.6 8.4 35.5 33.6 100

NB: 1=Strongly disagree, 2=Disagree, 3=Not Sure, 4=Agree, 5=Strongly agree.

From the findings in Table 4.5, respondents generally agreed that their company’s

productivity and market share was higher compared to the competitors. Specifically,

43 (40.2%) of the respondents agreed and 33 (30.8%) strongly agreed that overall, the

company’s productivity was higher compared to competitors. Similarly, on market

share, 38 (35.5%) of the respondents agreed and 36 (33.6%) strongly agreed that the

company’s market share was bigger compared to its competitors.

These findings have demonstrated that Sony Sugar Company majorly used its levels

of productivity and market share as the key indicators of measuring its competitive

advantage in the sugar industry. The findings showed that the productivity and market

share of Sony Sugar Company was higher compared to their competitor, thus, giving

them a higher competitive edge. Probably, high productivity and bigger market share

of Sony Sugar Company could have been achieved through adoption and

implementation of appropriate marketing strategies as it has been established in our

earlier findings.



58

Influence of Marketing Strategies on Competitive Advantage

The third objective of the Study was to examine how marketing strategies adopted by

Sony Sugar Company influenced their competitive advantage in the market. To

achieve this objective, the researcher formulated statements pertaining to the general

influence of each adopted marketing strategy on competitive advantage of

manufacturing companies in the sugar industry and asked the respondents to indicate

the extent to which they agreed or disagreed with the statements in reference to Sony

Sugar Company. The extent of agreeing or disagreeing was on Likert scale ranging

from 1-5, where 1=Strongly disagree, 2=Disagree, 3=Not Sure, 4=Agree, 5=Strongly

agree.

Influence of Pricing Strategy on Competitive Advantage

The first marketing strategy that Sony Sugar Company had adopted was pricing of

their products. Therefore, the study further sought to examine the various perceptions

of the respondents on the influence of pricing strategy on competitive advantage of

Sony Sugar Company. The findings were as shown in Table 4.6.

Table 4.6: Pricing on Competitive Advantage


The prices of the sugar produced are

reasonable in relation to the Kenya’s living standards

N 2 7 3 48 47 107

% 1.9 6.5 2.8 44.9 43.9 100

The company’s customers get value for their money

N 0 1 2 50 54 107

% 0 0.9 1.9 46.7 50.5 100

The company has classified sugar

produced based on grades and each

of the grades have different prices

N 10 14 5 44 34 107

% 9.3 13.1 4.7 41.1 31.8 100

The company offers discounts

frequently

N 4 14 14 40 35 107

% 3.7 13.1 13.1 37.3 32.7 100 NB: 1= Strongly disagree, 2=Disagree, 3=Not Sure, 4=Agree, 5= Strongly agree

The findings in Table 4.6 show that 48(44.9%) respondents agreed that the prices of

the sugar produced at Song Sugar Company were reasonable in relation to the



59

Kenya’s living standards, 47 (43.9%) strongly agreed, while 9 (7.4%) disagreed and

strongly disagreed with the statement. The results further showed that 48 (52.2%)

respondents1agreed that the company’s customers got value for their money,

50(46.7%) strongly agreed, 54 (50.4%) agreed, while 1 (0.9%) disagreed with the

statement. Additionally, the findings indicated that the company had classified sugar

produced based on grades and each of the grades have different prices since 44

(41.1%) of the respondents strongly agreed, 34 (31.8%) agreed, while only 24

(22.2%) disagreed with the statement. These findings imply that pricing plays a major

role in influencing the competitive advantage of Sony Sugar Company. This finding is

supported by Lopez (2014) who asserted that when used appropriately, value-based

pricing can improve consumer loyalty and sentiment.

Influence of Promotion Strategy on Competitive Advantage

The second marketing strategy that Sony Sugar Company had adopted was promotion

of their products. Therefore, the study further sought to know how the strategy had

influenced the competitive advantage of Sony Sugar Company. To this end, the

researcher highlighted statements regarding the influence of promotion strategy on

competitive advantage and respondents were required to indicate the extent to which

they agreed or disagreed. The findings were as shown in Table 4.7

Table 4.7: Promotion Strategy on Competitive Advantage


The presentation of the company

through the media is of high quality

N 2 8 11 48 38 107

% 1.9 7.5 10.3 44.9 35.5 100

The company runs high quality

advertisements

N 3 4 14 56 30 107

% 2.8 3.7 13.1 52.3 28.0 100

The company has an online presence,

and it uses online platforms such as

social media and websites to run its

promotional activities

N 0 6 13 52 36 107

% 0 5.6 12.1 48.6 33.6 100

The company caries out direct

marketing campaigns through platforms

such as charity events or conference

N 3 11 19 39 35 107

% 2.8 10.3 17.8 36.4 32.7 100

NB: 1=Strongly disagree, 2=Disagree, 3=Not Sure, 4=Agree, 5=Strongly agree



60

From the findings in Table 4.7, 48 (44.9%) respondents agreed that the presentation of

the company through the media was of high quality, 38 (35.5%) respondents strongly

agreed with the same, while 10 (9.4%) disagreed and strongly disagreed with the

statement. Additionally, 56 (52.3%) of the respondents agreed that the company ran

high quality advertisements, 30 (28%) strongly backed the statement, while 7 (6.5%)

respondents disagreed. On whether the company had an online presence and used

online platforms, such as social media and websites to run its promotional activities,

52 (48.6%) of the respondents agreed, 36 (33.6%) strongly agreed, while 6 (5.6%)

disagreed. On whether the company carried out direct marketing campaigns through

platforms, such as charity events or conferences, 39 (36.4%) of the respondents

agreed, 35 (32.7%) strongly agreed, while a few at 14 (13.1%) disagreed.

Further findings from the in-depth interviews with two key informants who

participated in this study revealed that promotion strategy had increased sales of the

company’s products, ensured reliability of the company’s products, enhanced

sustainability, and increased brand awareness. This promoted the company’s

competitive advantage.

These findings showed that the respondents were in agreement to a great extent that

the promotion marketing strategy that had been adopted at Sony Sugar Company had

greatly influenced the Company’s competitive advantage in the business environment.

These findings are in line with Ng`ang`a (2015) who opined that the adoption of

various promotion marketing techniques, including online advertising, social media,

email marketing, website design and development, and display advertising enables

customers to easily reduce waiting time and track transactions.



61

Influence of Product Strategy on Competitive Advantage

The third marketing strategy that Sony Sugar Company had adopted was product

strategy. This study sought to establish how product strategy had influenced the

competitive advantage of Sony Sugar Company. In this regard, the researcher

highlighted statements in relation to the influence of product strategy on competitive

advantage and asked respondents to indicate the extent to which they agreed or

disagreed. The findings were as illustrated in Table 4.8.

Table 4.8: Product and Competitive Advantage


The quality of sugar the company

produces positively affects the image

of the company

N 1 10 1 32 63 107

% 0.9 9.3 0.9 29.9 58.9 100

The company packages its products

in ways that are appealing to the

customers

N 0 2 1 36 68 107

% 0 1.9 0.9 33.6 63.6 100

The company has an attractive and

unique branding that differentiates it

from that of competitors

N 0 1 0 36 70 107

% 0 0.9 0 33.6 65.4 100

Generally, the customers are aware

about the brand of the company’s products and where to find them

N 0 1 1 40 65 107

% 0 0.9 0.9 37.4 60.7 100


From the findings in Table 4.8, a majority, 63 (58.9), of the respondents strongly

agreed and 32 (29.9%) agreed that the quality of sugar the company produces

positively influenced the image of the company, while some at 11 (10.2%) disagreed

with the statement. Further, 68 (63.6%) of the respondents were in strong agreement

that the company packages its products in ways that are appealing to the customers,

and this was backed by 36 (33.6%) respondents who just agreed with the same.

However, 2 (1.9%) disagreed. Further findings show that 70 (65.4%) of the

respondents strongly agreed that the company had an attractive and unique branding

that differentiates it from that of the competitors, which was backed up by 36 (33.6%)

who just agreed on the same point, however, 1 (0.9%) disagreed. Consequently, 65



62

(60.7%) of the respondents strongly agreed that the customers were aware about the

brand of the company’s products and where to find them, 40 (37.4%) just agreed on

the same, while 1 (0.9%) disagreed. These findings imply that through the branding

techniques, the company gained more competitive advantage over their competitors.

This is supported by Obado (2005) who noted that Kenyan sugar companies primarily

use utilize differentiation strategies to acquire a substantial market share in the sector

putting significant emphasis on branding and distribution.

Place Strategy as a Factor Influencing Competitive Advantage

The fourth marketing strategy that was employed by Sony Sugar Company was place

strategy. The study sought to know the influence of place strategy on competitive

advantage of Sony Sugar Company. Therefore, four general statements in relation to

the influence of product strategy on competitive advantage were highlighted and

respondents were asked to indicate the extent to which they agreed or disagreed. The

findings were as presented in Table 4.9.

Table 4.9: Place on Competitive Advantage


Generally, are the products accessible

to your customers

N 0 1 0 60 46 107

% 0 0.9 0 56.1 43.0 100

The company has a unique

distribution strategy

N 1 5 13 52 36 107

% 0.9 4.7 12.1 48.6 33.6 100

The company has accessible channels

of distribution

N 0 5 8 60 34 107

% 0 4.7 7.5 56.1 31.7 100

The company sells products in many

different places

N 0 4 9 48 46 107

% 0 3.7 8.4 44.9 43.0 100


It is evident from Table 4.9 that a majority (more than 50%) of the respondents

generally agreed (strongly agreed + agreed) with the statement concerning the

influence of place strategy on competitive advantage. For instance, 60 (56.1%)

respondents strongly agreed and 46 (43%) just agreed that the Company’s products



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were accessible to their customers while only 1 (0.9%) had a contrary opinion. The

respondents also agreed that the company had a unique distribution strategy

represented by 52 (48.6%) respondents who agreed and 36 (33.6%) who strongly

agreed. Further, the findings showed that 60 (56.1%) of the respondents agreed that

the company had easy access to channels of distribution, which was supported by 34

(31.7%) respondents who strongly agreed.

The study findings also showed that a majority of the respondents at 48 (87.9%)

‘agreed’ and ‘strongly agreed’ that the company sold products in many different

places.

Findings from the in-depth interviews also revealed that the location of Sony Sugar

Company had put off competitors, thus, increasing its market share. They also noted

that the location of the company had eased distribution of their products, thus, making

them easily available to their customers. The study findings implied that place is a

crucial marketing strategy in enhancing high competitive advantage. . For instance,

one key informant said;

Sony Sugar is strategically located compared to other sugar companies in

Kenya. The company lives up to this reality by being the dominant sugar

distributer in Kenya and beyond especially in East Africa.

Influence Sales Volume Strategy on Competitive Advantage

The fifth marketing strategy employed by Sony Sugar Company was sales volume of

the company’s products in the market. The study aimed at establishing how sales

volume strategy had influenced the competitive advantage of Sony Sugar Company.

To achieve this, statements in relation to the influence of sales volume strategy on

competitive advantage were highlighted and respondents were asked to indicate the

extent to which they agreed or disagreed. Table 4.10 presents the findings.



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Table 4.10: Sale Volume on Competitive Advantage


Sales volume of the company are

largely driven by our favorable

prices

N 1 5 6 55 40 107

% 0.9 4.7 5.6 51.4 37.4 100

The customers are loyal to our brand N 0 1 4 49 53 107

% 0 0.9 3.7 45.8 49.5 100

Promotional activities and campaigns

have endeared the customers to our

products thus increasing sales

volume

N 1 4 7 60 35 107

% 0.9 3.7 6.5 56.1 32.7 100

The quality of the sugar produced by

the company makes our sugar

popular among the customers thus

translating to higher sales

N 0 2 3 43 59 107

% 0 1.9 2.8 40.2 55.1 100


Based on Table 4.10, it was established that 55 (51.4%) of the respondents agreed that

sales volume of the company was largely driven by the favorable prices, 40 (21.7%)

respondents strongly agreed with the statement, while 6 (5.6%) disagreed with the

statement. The results also showed that 49 (45.8%) of the respondents agreed that the

customers were loyal to the company’s brand, 53 (49.5%) strongly agreed with the

statement, 4 (3.7 %) were uncertain about the statement, while only 1 (0.9%)

disagreed. Further findings revealed that 60 (56.1%) of the respondents agreed that

promotional activities and campaigns have endeared the customers to their products

thus increasing sales volume, 35 (32.7%) strongly agreed, 3 (3.7%) disagreed, while 1

(0.9%) strongly disagreed with the statement. Further, it was established that 59

(55.1%) of the respondents agreed that the quality of the sugar produced by the

company made the Company popular among the customers thus translating to higher

sales, 43 (40.2%) respondents strongly agreed with the same, 2 (1.9%) disagreed,

while 2 (2.8%) were undecided.

From the in-depth interviews, the two key informants who participated in this study

highlighted the following as the ways sales volume had determined competitive



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advantage of their company: increased sales, reliability of sales, and customer

satisfaction. One of them noted thus;

Sony Sugar has a mission of being world-class manufacturer of quality sugar

and marketing it to the delight customers. This can only be achieved through

increased production and sales, thus, ensuring customers satisfaction. That is

what Sony Sugar Company is concentrating on recently.

These findings have showed that sales volume strategy played a major role in

marketing, thus, greatly influencing the company’s competitive advantage. Therefore,

sales volume strategy is one of the major marketing strategies sugar companies should

consider enhancing their competitive advantage.

Connection between Marketing Strategies and Competitive Advantage

After establishing the influence of each of the five marketing strategies on

competitive advantage of Sony Sugar Company, the study went further to determine a

general description on how the five adopted marketing strategies were positively or

negatively associated with the competitive advantage of Sony Sugar Company in

Kenya. This was achieved by formulating various statements that captured the

connection of marketing strategies to competitive advantage and asked the

respondents to indicate the extent to which they agreed or disagreed with the

statements using a scale ranging from 1-5, where 1=Strongly disagree, 2=Disagree,

3=Not Sure, 4=Agree, 5=Strongly agree. Table 4.11 presents the study findings.



66

Table 4.11: Influence of Marketing Strategies on Competitive Advantage


Our company has earned more

customers, thus, generating more profits

due to use of appropriate marketing

strategies

N 1 3 6 58 39 107

% 0.9 2.8 5.6 54.2 36.4 100

Prices for our products are higher

compared to prices for similar products

from other companies, but our customer

base is more

N 4 16 12 46 29 107

% 3.7 15.0 11.2 43.0 27.1 100

Through marketing strategies, we

managed to build brand loyalty among

our customers.

N 1 1 7 50 48 107

% 0.9 0.9 6.5 46.7 44.9 100

Through marketing strategies, we have

maximize customer engagement leading

to better understanding of their role in

our holistically integrated strategic

marketing plan

N 1 1 9 50 46 107

% 0.9 0.9 8.4 46.7 43.0 100

Marketing strategies have helped our

company to acquire the desired response

from our customers, thus, increasing our

market share

N 0 4 4 59 40 107

% 0 3.7 3.7 55.1 37.4 100

Marketing strategies have enabled our

company to differentiate the quality of

our products and services, even if at a

low cost, to create superior value for our

customers and to serve them better than

is the case with the products and

services of our competitors

N 1 5 6 56 39 107

% 0.9 4.7 5.6 52.3 36.4 100

Our promotion marketing process has

opened distribution channels that are

significant in terms of increasing the

level of availability of our products and

services

N 0 5 11 52 39 107

% 0 4.7 10.3 48.6 36.4 100

NB: 1=Strongly disagree, 2=Disagree, 3=Not Sure, 4=Agree, 5=Strongly agree.

The findings in Table 4.11 indicate that most of the respondents at 58 (54.4%) agreed

that Sony Sugar company had earned more customers, thus, generating more profits

due to the use of appropriate marketing strategies, 39 (36.4%) strongly agreed with

the same, while 6 (5.6%) were undecided. In general, a majority of the respondents at

97 (90.6%) agreed that Sony Sugar company had earned more customers due to the

use of appropriate marketing strategies, thus, generating more profits. Further, 46

(43%) of the respondents agreed and 29 (27.1%) strongly agreed that the prices for

the company’s products were higher compared to prices for similar products from



67

other companies, but their customers base was still high. This means that a majority of

the respondents at 75 (70.1%) agreed that prices for the company’s products were

higher compared to prices for similar products from other companies, but the

customer base remained high, an indication that the quality of the company’s sugar

products was high.

Further, 50 (45.6%) of the respondents agreed and 48 (44.9%) strongly agreed that

through the adopted marketing strategies, Sony Sugar Company had managed to build

brand loyalty among its customers. Additionally, most of the respondents, at 50

(45.6%), agreed and 46(43%) strongly agreed that through marketing strategies, the

company had maximized customer engagement leading to better understanding of

their role in its holistically integrated strategic marketing plan.

On the same note, slightly more than half 59 (55.1%) of the respondents at agreed and

40 (37.4%) strongly agreed that marketing strategies had helped Sony Sugar company

to acquire the desired response from its customers, thus, increasing its market share.

Similarly, 56 (52.3%) of the respondents agreed and 39 (36.4%) strongly agreed that

marketing strategies had enabled the company to differentiate the quality of its

products and services, even if at a low cost, to create superior value for their

customers and to serve them better than is the case with the products and services of

our competitors. Lastly, 52 (48.6%,) of the respondents agreed and 39 (36.4%)

strongly agreed that the company’s promotion marketing process had opened

distribution channels that were significant in terms of increasing the level of

availability of their products and services.

Moreover, the respondents highlighted that through the adopted marketing strategies,

Sony Sugar Company had gained competitive advantage through; creation of job



68

opportunities for locals in the community (1.9%), direct interaction with distributors

and supplies, thus, having a good rapporteur with its clients (2.8%), company growth

through branding slogans, mission, vision, and core values thus providing way

forward for the next level (0.1%), and creation of a good brand image in Kenya

through marketing slogans such as “simply the sweetest” (2.8%).

Generally, these findings have shown that marketing strategies adopted by Sony

Sugar Company had a great connection with the company’s competitive advantage.

Through the marketing strategies adopted, the company had earned more customers,

thus, generating more profits; had set higher prices for the company’s products, while

maintaining the customer base, had built brand loyalty among its customers, and had

maximized customer engagement leading to better understanding of their role in the

company’s holistically integrated strategic marketing plan. Additionally, the adopted

marketing strategies had helped the company to: acquire the desired response from its

customers, thus, increasing its market share; differentiate the quality of its products

and services, even if at a low cost, to create superior value for their customers and to

serve them better than is the case with the products and services of competitors and to

open distribution channels that were significant in terms of increasing the level of

availability of their products and services. All these benefits have enhanced the

company’s competitive advantage.

Connection of Each Marketing Strategy with Competitive Advantage

After describing the general connection between marketing strategies adopted by

Sony Sugar Company and its competitive advantage, the study sought to find out the

relationship between each of the marketing strategies adopted and the competitive

advantage of the Company. To achieve this, the researcher conducted inferential



69

statistics (regression analysis) between the independent variables (the five marketing

strategies) and the dependent variable (competitive advantage). Regression analysis

was applied to determine the predictive power of the influence of each of the

marketing strategies on competitive advantage of Sony Sugar Company.

Therefore, multiple linear regression analysis between the five marketing strategies

(product, pricing, promotion, place, and sales volume) as the independent variables,

and competitive advantage as the dependent variable was conducted. Results were as

presented below.

Model Summary

The results of the model summary of the regression analysis are presented in Table

4.12.

Table 4.12: Model Summary of the Regression Analysis Model R R

Squar

e

Adjusted

R Square

Std.

Error of

the

Estimate

Change Statistics

R Square

Change

F

Change

df1 df2 Sig. F

Chang

e

1 .803

a .645 .658 .38401 .660

313.14

7 4 103 .000

a. Predictors: (Constant): product, pricing, promotion, place, and sales volume

Findings in Table 4.12 indicate that the five independent variables (product, pricing,

promotion, place, and sales volume) that were studied explain only 65.8% (Adjusted

R2=0.658) influence on the dependent variable (competitive advantage). This,

therefore, means there are other marketing factors contributing to 34.2%, not

considered in this research, that are influencing competitive advantage at Sony Sugar

Company. Therefore, further research needs to be carried out to establish these other

marketing factors that influence the competitive advantage of sugar manufacturing

companies in Kenya.



70

ANOVA Results

Further, the researcher tested if the overall model summarized in Table 4.12 was

valid. Table 4.13 shows a summary of the ANOVA statistics obtained from the mean

of the five marketing strategies (product, pricing, promotion, place, and sales volume)

that influenced competitive advantage of Sony Sugar Company. ANOVA cross-

tabulated results were obtained based on the consideration of mean values of

respondents’ views and opinions on the measurement indicators of competitive

advantage of Sony Sugar Company. Estimates were made based on the respondents’

perception on the marketing strategies (product, pricing, promotion, place, and sales

volume) that had been adopted by Sony Sugar Company.

Table 4.13: Model Summary of the Regression Analysis

ANOVAa

Model Sum of

Squares

Df Mean Square F Sig.

Regression 198.525 4 49.631 313.147 .000b

Residual 55.889 103 .147

Total 254.414 107

a. Dependent variable: Competitive advantage

b. Predictors: (Constant): Product, pricing, promotion, place, and sales volume

The significance value (p) for the relationship between marketing strategies (product,

pricing, promotion, place, and sales volume) and competitive advantage at Sony

Sugar Company was p=0.000. Since the statistical significance (p) value of 0.000 is

less than the accepted standard statistical significance of 0.05 (p < 0.05), it can be

concluded that the relationship between marketing strategies and competitive

advantage at Sony Sugar Company was statistically significant, thus, the linear

regression model was valid.



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Coefficient of Correlation

The researcher sought to determine the influence of the five marketing strategies

(product, pricing, promotion, place, and sales volume) on competitive advantage

among sugar manufacturing companies in Kenya. The regression statistical results

were as presented Table 4.14.

Table 4.14: Coefficient of correlation: Marketing Strategies-Competitive Advantage

Model Un-standardized

Coefficients

Standardized

Coefficients

t

statistics

Sig.

Level

B Std. Error Beta

(Constant) 1.554 .385 3.615 .007

1 Product strategy .379 .408 .111 .916 .006

2 Pricing strategy .278 .403 .054 1.434 .011

2 Promotion strategy .218 .482 .026 2.396 .006

3 Place strategy .524 .453 .215 2.396 .006

4 Sales volume strategy .176 .562 -.037 2.396 .006 a. Dependent variable: Competitive advantage of sugar manufacturing companies in Kenya

As per the SPSS generated table above, regression equation

Y = β0 + β1X1 + β2X2 + β3X3+ β4X4 + β5X5 + ε

Where: Y is the competitive advantage as result of marketing strategies adopted by

sugar manufacturing companies in Kenya.

B0 is a constant

β1 to β4 are the coefficient of the independent variables

x1 to x4 are the independent variables where;

ε is the error term.

Therefore,

Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + ε, becomes:

Y= 1.554+ 0.379X1 + 0.278X2 + 0.218X3 + 0.524X4 + 0.176X5 + ε

From the established equation, it implies that if the five marketing strategies in the

sugar manufacturing industry in Kenya (product, pricing, promotion, place, and sales



72

volume) are considered and kept constant at zero, competitive advantage among sugar

manufacturing companies in Kenya will be effective at 1.554. However, the data

findings analyzed indicate that taking all other independent variables (marketing

strategies) at zero: a unit increase in product strategy will lead to a 0.379 (37.9%)

influence in competitive advantage among sugar manufacturing companies in Kenya;

a unit increase in pricing strategy will lead to a 0.278 (27.8%) influence in

competitive advantage among sugar manufacturing companies in Kenya; a unit

increase in promotion strategy will lead to a 0.218 (21.8%) influence in competitive

advantage among sugar manufacturing companies in Kenya; a unit increase in product

strategy will lead to a 0.524 (52.4%) influence in competitive advantage among sugar

manufacturing companies in Kenya; while; a unit increase in sales volume strategy

will lead to a 0.176 (17.6%) influence in competitive advantage among sugar

manufacturing companies in Kenya. From these findings, it can be concluded that,

marketing strategies adopted by the sugar manufacturing companies in Kenya have

great influence on competitive advantage of the companies in the market.

Further, at 5% level of significance and 95% level of confidence, the relationships

between all the five marketing strategies (product, pricing, promotion, place, and sales

volume) adopted by the sugar manufacturing industry and the competitive advantage

were all significant. This is because the statistically significant value (p) of each

marketing strategy was less than 0.05, implying that the relationship between each

marketing strategy and competitive advantage was statistically significant.

Organizational Culture as Moderating Variable

For this study, the moderating variable between marketing strategies and competitive

advantage of sugar manufacturing companies in Kenya was the organization culture



73

of the companies. Therefore, this study sought to understand the organizational

culture of Sony Sugar Company and its influence on competitive advantage of the

company from the marketing strategies perspective. To achieve this, the researcher

asked key informants about the organizational culture of Sony Sugar Company and

how it influenced their competitive advantage.

During the in-depth interview with the Director of Marketing and the Manager of

Sales, the researcher learned that Sony Sugar Company has shifted focus to

professional competencies in their human resource and production capacities in the

sugarcane industry thus enhancing their market share. The company also has a vision

of becoming the leading sugar producer in Africa, thus, adopting the marketing

strategies geared towards achieving that mission. The key informants further

explained that they have recently designed programmes for farmer support and

funding, investing in roads, quality management systems, among others. All these are

a part of the company’s recently acquired culture to enhance their competitive

advantage.

One of the strong organizational cultures of Sony Sugar Company is striving hard to

stand uniquely among its many competitors in the sugar industry. From the in-depth

interviews with Director of Marketing and the Manager of Sales, this study

established that Sony Sugar has an unwavering philosophy and commitment to its

business model. The Director of Marketing explained as below:

In our business, the philosophy that drives us is our belief that we can only

operate in continuously profitable and sustainable manner. We belief that this

can only happen through having competent and motivated human resource

with appropriate professional skills, as well as key partners that are motivated

by our operations, services and products.



74

The Manager of Sales also opined as follows:

The marketing strategic intent and direction of Sony Sugar Company has been

and will always be to climb up in the value chain through product

diversification in relation to the company’s main work in sugar production and processing. This will depend on the synergy that we have with our

partners in the broad market industry.

These findings have shown that Sony Sugar had a unique organization culture in

terms of their vision, mission, and philosophy that informs the type of marketing

strategies they employed, which gives them a competitive edge in the sugar industry.

Summary of Key Findings

1. The main marketing strategies adopted by Sony Sugar Company to enhance

their competitive advantage were product strategy (72.9%), pricing strategy

(61.7%), promotion strategy (60.7%), place strategy (23.4%), and sale volume

strategy (15.9%).

2. Findings established that the competitive advantage of Sony Sugar Company

was majorly measured by the company’s productivity being higher than its

competitors at 71% and having a bigger market share than its competitors at

69.1%.

3. Regarding the influence of each of the marketing strategies on competitive

advantage of Sony Sugar Company; product marketing strategy positively

affected the image of the company (88.8), enhanced customer base through the

appealing packaging of its products, ensured an attractive and unique branding

(65.4%), and created customer awareness on the brand of the company’s

products and where to find them (98.1%). Pricing strategy ensured that the

prices of the sugar produced at Song Sugar Company were reasonable in

relation to the Kenya’s living standards (88.8%), customers got value for their

money (90.6%); and sugar produced was classified based on grades and each



75

of the grades had different prices (72.9%). Promotion strategy ensured that the

presentation of the company through the media was of high quality and the

company runs high quality advertisements (81.4%), the company had an

online presence, and it uses online platforms such as social media and

websites to run its promotional activities (82.2%), and that the company

carried out direct marketing campaigns through platforms such as charity

events or conference (68.1%). Place strategy played the role of ensuring that;

the products were accessible to their customers (99.1%), the company easily

accessed channels of distribution with unique distribution strategy (82.2%),

and that the company sold products in many different places (87.9%). Lastly,

sale volume strategy ensured that the sales volume of the company was largely

driven by the favorable prices (88.8%), making the company popular among

the customers (95.3%), ensuring customers were loyal to the company’s brand

(95.3%), and adequate promotional activities and campaigns (88.8%).

4. There is a connection between each of the marketing strategies adopted by

sugar manufacturing companies and competitive advantage of the company: A

unit increase in product strategy led to a 0.379 (37.9%) influence in

competitive advantage; a unit increase in pricing strategy led to a 0.27

8(27.8%) influence in competitive advantage; a unit increase in promotion

strategy led to a 0.218 (21.8%) influence in competitive advantage; a unit

increase in product strategy led to a 0.524(52.4%) influence in competitive

advantage, while a unit increase in sales volume strategy led to a 0.176

(17.6%) influence in competitive advantage among sugar manufacturing

companies in Kenya. Overall, when all the five marketing strategies are



76

combined together, they influence competitive advantage of sugar

manufacturing companies in Kenya by up to 65.8% (Adjusted R2=0.658).

5. Sony Sugar had a unique organization culture in terms of its vision, mission,

and philosophy that informs the type of marketing strategies they employed,

which gives them a competitive edge in the sugar industry.

Summary

This chapter has provided the study’s findings based on the primary data that was

collected from the field. The chapter started by presenting the study’s response rate.

Then the background information of the respondents was presented and interpreted.

Subsequently, the findings that were presented included: the marketing strategies

adopted in Sony Sugar Company, measures of competitive advantage at Sony Sugar

Company, and how marketing strategies adopted by Sony Sugar Company influenced

its competitive advantage in the market. The chapter ended by providing a summary

of the study’s key findings. Chapter five provides the discussion of the key findings,

conclusions, recommendations, and areas for further research.



77

CHAPTER FIVE

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS

Introduction

This chapter presents the discussions of findings of information collected and

analyzed on the marketing strategies used by Sony sugar companies to gain a

competitive edge. The discussions are carried out within the contexts of existing

theories and other related empirical studies carried out by other scholars. The

discussions are in line with the objectives of the study. Conclusions and emerging

recommendations are also provided.

Discussions of Key Findings

Marketing Strategies Adopted by Manufacturing Sugar Companies

Studies and research done by other researchers on marketing strategy and competitive

advantage, such as Adewale et al. (2013) found out that marketing strategies were

significant independent and determinants to business performance. Thus, the first

objective of the study was to identify the marketing strategies adopted by Sony Sugar

Company. The study established that Sony Sugar Company used a variety of

marketing strategies to enhance its competitive advantage. According to the study

findings, the main marketing strategies adopted by the Company to enhance their

competitive advantage were product strategy (72.9%), pricing strategy (61.7%),

promotion strategy (60.7%), place strategy (23.4%), and sale volume strategy

(15.9%). Other marketing strategies adopted include sponsorship deal Sony Sugar

Football Club (4.6%), sponsorship deals with students in various schools (2.8%) and

branding of buildings in various towns (1.8%). However, while the marketing

strategies were similar, their applications differed significantly.



78

These findings are supported by Kvesic (2008), who noted that companies use

different types of marketing strategies to position themselves and attain a sizeable

market share. Similar to this study, Kvesics’ study revealed that almost ten different

marketing strategies were identified as being used in both industries. The strategies

used by Sony Sugar Company were similar to Fifield’s (2007) who argued that

companies adopt market leadership strategies in various ways where they increase

users of their products, defend market share, and attack competitors in various ways

thus gaining competitive advantage. To achieve the desired competitive advantage,

this study shows that companies should understand their market, which will inform

the appropriate marketing strategies that resonate with the customers thus increasing

their competitive advantage.

Measures of Competitive Advantage in Sugar Manufacturing Companies

In the business environment, sustainable competitive advantage of an enterprise or

company is said to have been achieved when the business operations generate more

economic value than the competitors in the market (Kozlenkova et al., 2017).

Additionally, competitive advantage of a company is achieved when competitors are

not able to duplicate the benefits of the marketing strategies employed by the

company. The literature review section revealed that measurements of competitive

advantage is based on the sector or industry under which a business enterprise carries

its operations. Nevertheless, past potential competitiveness indicators that are

commonly used by most businesses in the manufacturing sector include the market

share, productivity (land, labour or capital), product cost, gross margin, returns on

assets, net income, unit cost ratio, total factor productivity, financial performance, and

profitability (Sachitra, 2017).



79

The current study established that Sony Sugar Company measures its competitiveness

in the market using the company’s productivity being higher than its competitors at

71% and having a bigger market share than its competitors at 69.1%. Since Sony

Sugar Company is one of the leading companies in the sugar industry in Kenya, it is

probable to argue that using productivity and market share are the most appropriate

measures of competitiveness among manufacturing companies in the Sugar industry

in Kenya.

There are previous studies that were conducted in relation to measures of competitive

advantage, and some of them are in agreement with this study’s findings that

productivity and market share are the most appropriate measures of competitiveness

among manufacturing companies in the Sugar industry in Kenya. For instance,

Imbambi, Oloko, and Rombo (2017) conducted a study on the influence of material

capability on competitive advantage of sugar companies on Western Kenya. Notably,

Imbambi et al.’s study found that productivity, market share, and profitability were

the measures of competitive advantage among sugar companies on Western Kenya.

On the other hand, Obasan et al. (2015) found that the competitive position is a

complex and multi-faceted phenomenon, and no particular measure of competitive

advantage is sufficient to represent organizational performance holistically. Moreover,

Obasan et al. argued that a strong competitive position must comprise efficiency,

adaptability, and effectiveness. Additionally, there is a crucial connection among

strategic orientations, competitive positioning, and interactive control system.

According to Stutz and Warf (2009), competitive advantage fortifies a company’s

resources, competencies, and strategies with performance and when marketing

strategies are successfully adopted and implemented, company performance is



80

enhanced by facilitating competitive advantage. Contrary to the current study

findings, which found that productivity and market share are major indicators of

competitive advantage among sugar manufacturing companies, Stutz and Warf argued

that innovation is an important tool related to firm competitive advantage due to

dynamism in the market structure. Gilbert (2006) supported Stutz and Warf that firms

that endeavor to maintain their current level of performance or increase them need

innovation to identify new markets for their products as the existing market continues

to shrink.

In support of the current study findings, Pearce and Robinson (2007) argued that

product market share may be used to measure the competitive advantage which the

products and technology are able to stand against competitors. Additionally, Waswa

et al. (2018) argued that the performance of sugar firms in terms of productivity and

market share directly determine the economic development of the agricultural sector

and the country as a whole. Therefore, sugar industry being a sub-sector in the

agriculture implies its productivity and market share directly determines the economic

development of the country. Similarly, Moraa et al. (2017) found that competitive

advantage helps maintain and sustain a desirable market position and helps a company

perform exceptionally.

Based on the current study findings, therefore, competitive advantage among sugar

manufacturing companies helps them maintain and sustain a desirable market, thus,

performing exceptionally. This, as noted by Moraa et al. (2017) translates into

increased sales volume and higher revenue when compared to those of competitors in

the same sector.



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How Marketing Strategies Adopted by Sugar Manufacturing Companies Influence

their Competitive Advantage

This study established that marketing strategies employed by Sony Sugar Company

had greatly influenced the company’s competitive advantage. Product marketing

strategy positively affected the image of the company, (88.8%), enhanced customer

base through appealing packaging of its products, ensured an attractive and unique

branding (65.4%), and created customer awareness on the brand of the company’s

products and where to find them (98.1%). These findings are in line with those of

Kumar and Pansari (2016) who asserted that product quality is an essential

determinant of the buyers’ satisfaction, thus, a significant pointer of competitiveness

achieved through repeat sales and superior economic returns.

On packaging, Isoraite (2016) supported this study’s findings by pointing out that

attractive packaging design can create a competitive advantage, especially when the

design outshines that of rival products. Ideally, the packaging of an item should

communicate and offer convenience to the buyer, user, and the distributor. The pack

plays the role of a silent sales representative by capturing attention and highlighting

essential details as well as giving helpful tips on the usage of the product. Regarding

branding, the findings of this study are supported by Sinha and Sheth (2018), who

found that branding helps to distinguish the company’s product from those of rival

firms in a unique manner that is relevant to its targeted market. Additionally, it

increases product perception among consumers, thus, builds brand loyalty.

Study findings indicated that pricing strategy ensured that the prices of the sugar

produced at Song Sugar Company were reasonable in relation to the Kenya’s living

standards (88.8%), customers got value for their money (90.6%); and sugar produced

was classified based on grades and each of the grades had different prices (72.9%).



82

These findings are in line with Lopez (2014) who asserted that when used

appropriately, value-based pricing can improve consumer loyalty and sentiment.

Additionally, pricing can help the organization prioritize its customers in other areas

of strategic marketing. That notwithstanding, the strategy requires the company to be

in touch with the customer profiles and persona continually and apply price

discrimination where customers vary.

Ismail et al. (2018) adds that an effective pricing strategy accounts for all market

segments, competitor practices, prevailing market conditions, consumers’ ability to

pay, and cost of production. As such, Ismail et al. (2018) further noted that pricing

directly affects the ability of a company to earn a competitive edge because it directly

targets a defined consumer base and is set against rival companies. Different pricing

strategies help businesses to choose prices that maximize returns and add on to

shareholder value while taking into consideration market demand and consumer

needs.

In other findings, promotion strategy ensured that the presentation of the company

through the media was of high quality and the company runs high quality

advertisements (81.4%), the company had an online presence, and it uses online

platforms such as social media and websites to run its promotional activities (82.2%),

and that the company carried out direct marketing campaigns through platforms such

as charity events or conference (68.1%). In support of these findings, a related study

by Sinha and Sheth (2018) pointed out that when a business executes its promotion

strategy, such as advertising, smartly and effectively, it is likely to outshine its rivals.

Promotion strategy entails the marketing of communication methods employed by a



83

company, which include advertising, sales promotions, direct marketing, and public

relations.

The technique of promotion used should suit the product, the price, and the targeted

user (Sinha & Sheth, 2018). Promotion is the communication aspect of the entire

marketing strategy as it entails the dissemination of relevant product information to

help differentiate the product from others in the market. In this purview, Sony Sugar

Company used vigorous and productive advertising strategies to capture the attention

of a larger market share, and this helped the company to earn a competitive position in

both the domestic and international market. It even used sponsorship deals such as

Sony Sugar Football Club to advertise itself and its products.

As per the study findings, place strategy played the role of ensuring that; the products

were accessible to their customers (99.1%), the company easily accessed channels of

distribution with unique distribution strategy (82.2%), and that the company sold

products in many different places (87.9%). These findings concur with Badi (2018)

who observed that a productive distribution process allows a company to meet the

goal of delivering the item in the right place and at the right time hence improving on

the competitive edge.

The study findings also revealed that sale volume strategy ensured that the sales

volume of the company was largely driven by the favorable prices (88.8%), making

the company popular among the customers (95.3%), ensuring customers were loyal to

the company’s brand (95.3%) and adequate promotional activities and campaigns

(88.8%).

The study established that there is a strong connection between marketing strategies

adopted by sugar manufacturing companies and their competitive advantage. Overall,



84

the study found that when all the five marketing strategies (product, promotion,

pricing, place, and sales volume) adopted by Sony Sugar Company were combined,

they influenced competitive advantage of the company up to 65.8% (Adjusted

R2=0.658). Individually, a unit increase in product strategy led to a 0.379 (37.9%)

influence in competitive advantage, a unit increase in pricing strategy led to a 0.278

(27.8%) influence in competitive advantage, a unit increase in promotion strategy led

to a 0.218(21.8%) influence in competitive advantage, a unit increase in product

strategy led to a 0.524(52.4%) influence in competitive advantage, while a unit

increase in sales volume strategy led to a 0.176(17.6%) influence in competitive

advantage among sugar manufacturing companies in Kenya. Kozlenkova et al. (2017)

also support these study findings by observing that the facets of competitive

advantage and strategic marketing are intrinsically related.

Kozlenkova et al. (2017 noted that marketing strategies such as pricing, promotion,

sales volume, and product quality have a strong and significant relationship with

competitive edge in the market. This justifies the reason why companies in the sugar

manufacturing industry need to conduct a SWOT analysis on the appropriate

marketing strategies, by assessing its strengths, weaknesses, opportunities, and threats

in the internal and external business environment in order to gain a competitive edge

in the market. The SWOT analysis of the most effective marketing strategies assists a

company to develop the best strategic marketing plan as the management of the

company is aware of the competitive advantage it can use in the market to compete

favorably against rivals in the industry (Kozlenkova et al., 2017).



85

Conclusion

Globally, competition in markets creates an unpredictable business environment for

manufacturing companies, including the sugar industry. As a result, companies have

to swiftly adapt and take advantage of any emerging opportunities, respond to threats,

outdo their competitors, and mitigate any disasters. This study established that sugar

manufacturing companies use a variety of marketing strategies to enhance their

competitive advantage. The major marketing strategies adopted by Sony Sugar

include product, promotion, place, sale volume and pricing strategies. Notably,

product and promotion were the most widely used strategy compared to others. The

competitive advantage of sugar manufacturing companies is majorly measured in

terms the company’s level of productivity and its market share in the sugar industry

market.

The marketing strategies employed by sugar manufacturing companies have

significant influence on the markets within which they operate. A company that has

adopted and appropriately implemented product, pricing promotion, place, and sales

volume marketing strategies has a competitive edge compared with its competitors.

For instance, marketing strategy positively affects the image of the company in the

market, enhances customer base through appealing packaging of products, ensures an

attractive and unique branding, and creates customer awareness on the brand of the

products and where to find them.

Similarly, pricing strategy ensures that the prices of the products are reasonable in

relation to people’s living standards, customers get value for their money and

products are classified based on grades with different prices. On the other hand,

promotion strategy ensures high quality presentation of the company through the



86

media, high quality advertisements, online presence, and direct marketing campaigns

through platforms such as charity events or conference. Place strategy plays the role

of ensuring products’ accessibility by customers, easy access to channels of

distribution with unique distribution strategy), and wide range of markets for the

company products. Lastly, sale volume strategy ensures that the sales volume of the

company is largely driven by the favorable prices, the company is popular among

many customers, customers are loyal to the company’s brand, and there is adequate

promotional activities and campaigns.

Each of the five marketing strategies have an influence on the competitive advantage

among sugar manufacturing companies. However, all the five marketing strategies

have positive connection or relationship with competitive advantage of the sugar

manufacturing companies in Kenya.

Recommendations

Based on the findings of this study, the following recommendations were made.

1. The study established that product, pricing promotion, place, and sales volume

marketing strategies have a significant influence on the competitive edge of

Sony Sugar Company in the sugar industry in Kenya. Therefore, this study

recommends that companies in the sugar manufacturing companies that have

not yet adopted marketing strategies should consider the five marketing

strategies if they are looking forward to having a competitive edge over their

competitors such as Sony Sugar Company.

2. Managers of sugar manufacturing companies should research and realize the

appropriateness of a particular marketing strategy and its level of influence on

the company’s competitive advantage. This helps the managers to ascertain



87

whether when the marketing strategy is adopted, standardized, or somewhere in

between, it is fit in the company’s measures of competitive advantage, such as

productivity, profitability, market share, among others. Therefore, managers

should put more attention and resources on finding the most appropriate and

effective marketing strategies mix that will give the company a competitive

edge over its competitors both nationally and internationally.

3. The study established that there is a positive connection between marketing

strategies (product, pricing, promotion, place, and sales volume) and

competitive advantage of Sony Sugar Company. Despite this connection,

managers of sugar manufacturing companies should endeavor to examine the

potential value creation of each marketing strategy and align this value to their

overall strategic plan to enhance their competitive advantage.

Recommendations for Further Research

1. The study was done with a focus on the influence of marketing strategies on

competitive advantage of sugar manufacturing companies in Kenya, with a focus

on case of Sony Sugar Company. The researcher recommends that a similar study

be done on a broader scope, for example, using other sugar companies, other

sectors to assess how representative these findings are.

2. This study was limited to five marketing strategies, that is, product, pricing,

promotion, place, and sales volume. Study findings indicated that when all the

five marketing strategies are combined, they influence competitive advantage of

sugar manufacturing companies in Kenya up to 65.8% (Adjusted R2=0.658).

Therefore, the research recommends that further investigations be conducted on

other factors, contributing to 34.2%, that influence competitive advantage of



88

sugar manufacturing companies apart from the five marketing strategies dealt

with by the study.



89

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APPENDICES

Appendix A: Questionnaire

Dear Sir/Madam,

My name is RUTH OMMALA, a Masters Student at Daystar University. I am

currently carrying out an academic research project on “Influence of marketing

strategies on competitive advantage of sugar manufacturing companies in Kenya”. Your company was selected as a case study. Therefore, this questionnaire seeks

information on your personal background, the marketing strategies adopted by your

company, factors that determine competitive advantage, and the influence of the

adopted marketing strategies on competitive advantage in the sugar industry. I

therefore kindly request you to take a few minutes of your time and fill out this

questionnaire to help me complete this research successfully. Please be as honest and

truthful as possible. Be assured that your responses will be treated with utmost

confidentiality and will be used purely for academic purpose only. If you have any

questions about this Research or want to know about the results, please feel free to

email [email protected] or contact my supervisors at the Department

of Commerce, Daystar University, Kenya.

Please read each question carefully and follow given instructions. Kindly tick (√) your response in the box matching your answer. The responses are for academic purposes

only and will be treated with utmost confidentiality.

Section A: Respondents Profile

1. Name of your Company: ………………………………………………………….

1. Current position in your Company:

Junior/Lower level staff [ ] Middle Level Management [ ]

Senior Management [ ] Executive [ ]

Any other (specify): ………………………………………………………………

2. For how long have you worked in this company?

Less than 5 years [ ] 5 – 10 years [ ] 11 – 15 years [ ] Over 15 years [ ]

3. For how long have you worked in your current position?

Less than 5 years [ ] 5 – 10 years [ ] 11 – 15 years [ ] Over 15 years [ ]

Section B: Marketing Strategies Adopted by Sugar Companies

4. a) If your answer in Q5 above is Yes, kindly select the marketing strategies used

by your company:

Pricing [ ] Promotion [ ] Product [ ] Place [ ] Sales Volume [ ]

b) Any other marketing strategy employed by your company? (Please specify)



mailto:[email protected]

95

………………………………………………………………………………..

Section C: Measures of Competitive Advantage in Sony Sugar Company

5. Below are statements that pertain to competitive advantage in your company.

Kindly indicate the extent to which you agree with the statements using a scale

ranging from 1-5, where 1=Strongly disagree, 2=disagree, 3=Not Sure, 4=agree,

5=Strongly agree

Statements 5 4 3 2 1

Overall, our company’s productivity as high compared to competitors

Overall, our company’s market share is bigger compared to competitors

Section D: Influence of Marketing Strategies on Competitive Advantage in Sony

Sugar Company

6. Below are some statements that pertain to the influence of each marketing strategy

on the competitive advantage in your company. Kindly indicate the extent to

which you agree with the statements using a scale ranging from 1-5, where

1=Strongly disagree, 2=disagree, 3=Not Sure, 4=agree, 5=Strongly agree


Pricing

The prices of the sugar produced are reasonable in relation to the

Kenya’s living standards

The company’s customers get value for their money

The company has classified sugar produced based on grades and each

of the grades have different prices

The company offers discounts frequently

Promotion

The presentation of the company through the media is of high quality

The company runs high quality advertisements

The company has an online presence and uses online platforms such

as social media and websites to run its promotional activities

The company caries out direct marketing campaigns through

platforms such as charity events or conference

Product

The quality of sugar the company produces positively affects the

image of the company

The company packages its products in ways that are appealing to the

customers

The company has an attractive and unique branding that differentiates

it from that of competitors

Generally, the customers are aware about the brand of the company’s



96

products where to find them

Place

Generally, the products accessible to your customers

The company has a unique distribution strategy

The company has easy to access channels of distribution

The company sells products in many different places

Sales Volume

Sales volume of the company are largely driven by our favorable

prices

The customers are loyal to our brand

Promotional activities and campaigns has endeared the customers to

our products thus increasing sales volume

The quality of the sugar produced by the company makes our sugar

popular among the customers thus translating to higher sales

Section D: Connection between marketing strategies and competitive advantage

7. a) Below are statements that pertain to the connection between marketing

strategies your company is employing and its competitive advantage. Kindly

indicate the extent to which you agree with the statements using a scale ranging

from 1-5, where 1=Strongly disagree, 2=disagree, 3=Not Sure, 4=agree,

5=Strongly agree


Our company has earned more customers, thus, generating more profits

due to use of effective marketing strategies

Prices for our products are higher compared to prices for similar products

from other companies, but our customer base is maintained

Through marketing strategies, we managed to build brand loyalty among

our customers.

Through marketing strategies, we have maximize customer engagement

leading to better understanding of their role in our holistically integrated

strategic marketing plan

Marketing strategies have helped our company to acquire the desired

response from our customers, thus, increasing our market share

Marketing strategies have enabled our company to differentiate the quality

our products and services, even if at a low cost, to create superior value for

our customers and to serve them better than is the case with the products

and services of our competitors

Our promotion marketing process has opened distribution channels that

are significant in terms of increasing the level of availability of our

products and services

b) Any other connection between marketing strategies the company has adopted and

its competitive advantage (Please explain).

………………………………………………………………………………..………………………………………………………………………………..……………………

END. THANK YOU FOR YOUR TIME



97

Appendix B: In-depth Interview Guide

Questions

1. Are there marking strategies in your company? Yes [ ] No [ ]

2. What are the marketing strategies used by your company?

3. How does pricing of your products determine competitive advantage of your

company?

4. How does promotion determine competitive advantage of your company?

5. How do products produced determine competitive advantage of your

company?

6. How does location of your company determine its competitive advantage of

your company?

7. How does sales volume determine competitive advantage of your company?

8. Kind explain how the identified marketing strategies influence on competitive

advantage in Sugar Companies in Kenya



98

Appendix C: Researcher’s Letter Seeking Permission to Collect Data



99

Appendix D: Ethical Clearance



100

Appendix E: Research Permit



101

Appendix F: Plagiarism Report



Documents

Influence of Marketing Strategies on Competitive Advantage of