Influence of Marketing Mix Variables on Organizational Performance in Subsidiary Chemical Firms in Nairobi County, Kenya

Abstract

Chemical manufacturing firms constitute a significant portion in the industrial ecosystem in the Kenyan economy. However, these firms face a myriad of challenges that impede not only their growth but also their sustainability. This study explored marketing mix variables’ influence on organizational performance of subsidiary chemical firms in Kenya. These subsidiary chemical companies have their roots in foreign countries and have a track record of global success. However, in Kenya, service statistics indicate that their performance is threatened. The organizational performance of these subsidiary chemical companies was related to the marketing mix elements in the context of global expansion. The main companies of focus include Merck KGaA, BASF, Evonik Industries, Croda International, Sigma Aldrich and Dow Chemicals. The study was based on three theories which include the structure-conduct-performance, resource-based view and the Balanced Scorecard theory. The study used a census of six subsidiary chemical companies in Nairobi County in Kenya. The marketing mix variables consisting of price, promotion, product and place (distribution) were elucidated mainly from the primary data source consisting of questionnaires and secondary data from various sources such as periodicals and financial statements. The data was analyzed by means of inferential as well and descriptive statistics. Standard deviations, percentages, frequencies and means constituted descriptive statistics. Inferential statistics involved the use of multiple linear regression models which yielded ANOVA results and parameter estimates. The analysis results indicated that the four marketing mix variables namely: price, promotion, distribution and product are statistically significant predictors of organizational performance in the subsidiary chemical companies in Nairobi. Product promotion showed statistical significance to organizational performance as shown by (β = .269, P = 0.001); Product’s distribution (β =0.171, P = 0.001); Product itself (β =0.589, P = 0.001); and product’s price (β =0.294, P = 0.001). It is therefore recommended that in order to improve organizational performance in companies within the Chemicals Sub sector in Kenya, senior managers and high ranking actors therein should apply the range of marketing mix variables highlighted, specifically product itself and its associated attributes. A multi sectoral study in both corporate and private organizations is also recommended from this study findings. Intercounty studies should also be carried out to elucidate specific variables at the regional level and extended further to the national level.