Growth Strategies and Market Performance in Fast-Moving Consumer Goods Industry in Kenya: A Case Study of Unilever Kenya Limited

Abstract

The FMCG industry is volatile with rapid changes which necessitate strategic innovation and adaptability in order to stay afloat. The study investigated the impact of growth strategies on market performance of the FMCG industry with a focus on Unilever Kenya Limited. The objectives of the study included assessing how diversification strategies, product development strategies, market development and market penetration impact key outcomes such as market share, customer acquisition, and sales volume. The statement of the problem highlights the challenges faced by the sector due to increased competition despite the enabling factors such as urbanization and technological advancements such as closure, bankruptcy and dwindling market share. The study was guided by three theories, including the Ansoff model, the Balanced Scorecard Model, and the anchor theory- Resource-Based View Theory. This study adopted an explanatory and descriptive research design and quantitative methods in data collection with the use of structured questionnaires. The target population of this study was 500 employees of Unilever who comprise marketing managers, brand managers, and sales executives. To find the sample of 222, this study used the stratified random sampling technique. Reliability assessment was done using Cronbach's alpha and content validity assessed through the review of experts to ensure items comprehensively cover the construct. Correlational and regression analysis was utilized using SPSS version 28 and presented using descriptive and inferential statistics, including tables. The findings revealed that growth strategies positively and statistically significantly influence the market performance in the FMCG industry. Specifically, diversification strategy and market penetration strategies showing the strongest correlations (r=.732 and r=.714, p=.000). The study further found that 33.9% of the variance in market performance could be explained by the growth strategies adopted by this study. The study recommended that FMCG firms must continually embrace growth strategies to enhance market performance. Industry practitioners should pursue innovative marketing techniques and comply with relevant government regulations. The study further recommends that policymakers should contribute through the creation of an environment that supports new business entry, fosters innovation, and maintains market competitiveness. The study also recommends that generally, the study contributed to the existing literature by providing empirical evidence of the relationship between growth strategies and market performance in Kenya’s FMCG scene, offering practical solutions for industry stakeholders.