Effect of Market Development Strategy on Performance of Animal Feeds Manufacturing Firms in Meru County

Abstract

Due to its major role in the Kenyan economy, the success of the animal feed manufacturing business has broad implications for the whole agricultural sector. This study sought to assess the effect of market development strategy on performance of animal feeds manufacturing firms in Meru County. Ansoff’s product/market model underpinned the study. The study employed a descriptive survey design on a target population of 109 top management in all the twenty-three animal feeds manufacturing firms in Meru County. The study adopted a census survey and Self-administered questionnaires were used as the data collection tool. Cronbach’s alpha was utilized to measure the reliability of research instrument. The researcher considered the content validity of the research instrument by seeking the opinion of the supervisor who is an expert in strategic management and comparing with other instruments that have been used in other studies in strategic management. Both descriptive and inferential analysis was used in data analysis. The findings show that market penetration, market development, product development and diversification strategies have a positive and statistically significant relationship with the performance of agrochemical companies. This study makes several conclusion; one, market penetration is the most important predictor of performance of Animal feeds companies. The study recommends that to improve on market development strategy, it is recommended that the companies should open new branches in new geographical areas and package their products in different quantities for different clients. Finally, it is also recommended that future studies could be carried out in other counties and different industries such as banking and manufacturing for a comparison of the finding.