ASSESSMENT OF THE CONTRIBUTION OF MARKETING STRATEGY PRACTICE

ON THE ORGANIZATIONAL PERFORMANCE: A CASE OF ST. GEORGE

BREWERY COMPANY.

A RESEARCH THESIS SUBMITTED TO COLLEGE OF BUSINESS

AND ECONOMICS MARKETING MANAGEMENT DEPARTMENT
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
MASTERS OF ARTS DEGREE IN MARKETING MANAGEMENT

MADDA WALABU UNIVERSITY SHASHAMANE CAMPUS

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

BY; Mwkuanent Nigusie

ADVISOR: Teshale Terefa (PhD, ASSISTANT PROFESSOR)

SHASHAMANE, ETHIOPIA

Jan, 2022

0|Page
 Approved by;

______________________ ________________________ __________________

Thesis Advisor Signature Date

_____________________ ________________________ __________________

Internal Examiner Signature Date

______________________ ________________________ __________________

External Examiner Signature Date

i|Page
 Acknowledgement
First, I would like to thank almighty God, the compassionate, the most merciful and source of
knowledge and wisdom, who bestowed upon me the health, the power of communication and the
audacity to accomplish this thesis.

I am grateful to Dr. Teshale T for his valuable comments in the process of development of
proposal. I would also like to extend my gratitude to Madda Walabu University School of business
and economics especially marketing management department for helping me in the development
of research proposal title to final thesis.

iii
Contents
Acknowledgement ....................................................................................................................................... iii

List of Table ............................................................................................................................... vi

Abstract....................................................................................................................................................... vii
CHAPTER ONE ............................................................................................................................................ viii
1. INTRODUCTION ..................................................................................................................................... viii

1.1. Background of the study ................................................................................................... viii

1.2 Statement of the Problem .................................................................................................. x

1.3. Research Questions ............................................................................................................. xi

1.4. Objectives of the Study .................................................................................................. xii

1.5. Hypotheses ..................................................................................................................... xii

1.6. Significance of the Study .............................................................................................. xiii

1.7. Scope of the Study ........................................................................................................ xiii

1.8. Organization of the Paper ............................................................................................. xiii

CHAPTER TWO .............................................................................................................................................xv

REVIEW OF RELATED LITERATURE ............................................................................ xv

2.1. Definition of Terms ............................................................................................................ xv

Conceptual frame work ............................................................................................................. 25

METHODOLOGY OF THE STUDY.................................................................................................................. 26

3.1. Introduction .................................................................................................................... 26

3.2. Research Approach and Research Design ..................................................................... 26

3.3. Population and Sampling Technique ............................................................................. 27

3.4. Data Type, Source, and Method of Data Collection ...................................................... 27

3.5. Methods of Data Analysis .............................................................................................. 28

3.6. Reliability Test ............................................................................................................... 28

3.7. Validity Test ................................................................................................................... 29

iv | P a g e
 3.8. Ethical considerations .................................................................................................... 29

CHAPTER-FOUR ........................................................................................................................................... 30
DATA PRESENTATION, ANALYSIS AND INTERPRETATION ........................................................................... 30

4. Introduction ........................................................................................................................... 30

4.1. Demographic Profile and General Information ................................................................. 30

4.2. Company’s STP Strategy Practice ..................................................................................... 32

4.3. Regression Analysis ........................................................................................................... 34

4.3.1 The Assumptions for Testing Regression Analysis ......................................................... 34

4.3.1.1 Test of Normality ...................................................................................................... 35

4.3.1.2. Test of Linearity ....................................................................................................... 35

4.4. Marketing strategy adopted by St. George Brewery Factory. ....................................... 38

4.4.1. EXPLORATORY FACTOR ANALYSIS .................................................................. 38

4.5. The Relationship Between marketing strategy and Brewery Factor performance ...... 45

4.6. Contribution of Marketing Management Strategy towards Performance in Brewery Share

Factory ...................................................................................................................................... 47

4.6.1. STEP WISE MULTIPLE REGRESSION .................................................................. 47

CHAPTER FIVE ............................................................................................................................................. 52

SUMMERY, CONCLUSION AND RECOMMENDATION OF RESEARCH FINDING ........................................... 52

5.1.1. FINDING RELATED TO RESEARCH OBJECTIVE ONE ......................................... 52

5.2. Conclusions ........................................................................................................................ 53

5.3. Recommendations .............................................................................................................. 55

Bibliography .................................................................................................................................................. A
Appendix ....................................................................................................................................................... C

v|Page
 List of Table

Table 4. 1 Demographic Characteristics of Respondents general .............................................................. 31

Table 4. 2 Employees’ Response about Market Segmentation, Targeting and Positioning ....................... 32
Table 4. 3 Tests of Normality ...................................................................................................................... 35
Table 4. 4 Collinearity Statistics ................................................................................................................. 38
Table 4. 5 KMO and Bartlett's Test ............................................................................................................. 39
Table 4. 6 Scale component communalities .............................................................................................. 39
Table 4. 7 Total Variance Explained ........................................................................................................... 41
Table 4. 8 Rotated Component Matrix ....................................................................................................... 42
Table 4. 9 Cronbach’s Alpha value ..............................................................................................................
44 Table 4. 10 Summary of Results for Factor Analysis of the Scale Dimensions ..................................... 44
Table 4. 11 correlation matrix .................................................................................................................... 46
Table 4. 12 Coefficientsa ............................................................................................................................ 47
Table 4. 13 Model Summary b .................................................................................................................... 48
Table 4. 14 ANOVA ....................................................................................................................................
49 Table 4. 15 Summaries of tested Hypotheses ....................................................................................... 50

List of Figure

Figure 4. 1 Normal P-P Plot of regression ................................................................................................... 36

Figure 4. 2 Histogram ................................................................................................................................. 37

vi | P a g e
 Abstract

The purpose of this study is to analysis marketing strategy and its contribution with special
reference to St. georges brewery Share Company. This study uses both descriptive and explanatory
research designs. Five dimension of marketing management strategies namely Product, Price,
Promotion, Place and Relationship marketing are considered as predictor factors for the analysis
of this study. A structured questionnaire with five point Likert scale was used to collect the data.
A total of 135 questionnaires were distributed to company employees. Purposive sampling was
employed to select respondents. The collected data was analyzed using Descriptive Statistics,
Factor Analysis and Inferential statistics analysis tools. Software packages like SPSS software
version 25 was used for computerized data analysis. This study uses a type of quantitative research
that has the potential to generalize the findings, using exploratory factor analysis (EFA) and
multiple regressions to obtain optimal results. Marketing management strategy analysis has the
dignity to help the company implement the right marketing strategies to satisfy and penetrate the
company’s customer groups, which is phrased as target markets. Therefore, the company should
constantly alter the sub elements of each marketing strategy to successfully compete with its
competitors and offer the greatest value to its customers. The study found that the independent
variables have the significant effect on the Brewery Factory performance but, the price is not.
Each one has its unique contribution and effect to the performance of the Brewery Factory
businesses. Its performance is proportionately depending on the marketing strategy applied.
Therefore, from this result it recommended that, when high-quality product is produced by
business enterprise, appropriately promoted and distributed to the target customer, efficiently
creating long term relationship, it will lead to higher business performance; in term of
profitability, increase sales, customer satisfaction, and brand awareness.

Key words; St. Georges Brewery, Marketing Management Strategies, Business Performance,

|Page
vii | P a g e
 CHAPTER ONE

1. INTRODUCTION

1.1. Background of the study

As Kotler and Keller (2012) defined marketing management as the art and science of choosing
target markets and getting, keeping, and growing customers through creating, delivering, and
communicating superior customer value. Kotler and Keller (2012) also stated that the first decade
of the 21st century challenged firms to prosper financially and even survive in the face of an
unforgiving economic environment. Marketing is playing a key role in addressing those
challenges. Finance, operations, accounting, and other business functions won’t really matter
without sufficient demand for products and services so the firm can make a profit. In other words,
there must be a top line for there to be a bottom line. Thus, financial success often depends on
marketing ability. Marketing’s broader importance extends to society as a whole. Marketing has
helped introduce and gain acceptance of new products that have eased or enriched people’s lives.
It can inspire enhancements in existing products as marketers innovate to improve their position
in the marketplace. A marketing strategy summarizes the way in which the marketing mix is used
to invite and fulfill the target markets and achieve firm’s goals. Industry vendors deprived of a
proper marketing contextual often think of marketing in terms of promoting, publicity and
advertising sections. However those are significant features of marketing, they are actions that
helps the whole marketing strategies of the industry that construct a concrete trademark.
Consequently, marketing strategy is mostly fruitful when it is an important portion of firm
mission, target marketing, marketing mix and fundamentally how the companies will efficiently
participate consumers, and forecast, rival in the marketplace (Dibb, 2005).

Boone and Kurtz (2012) stated that the marketing concept, a crucial change in management
philosophy, can be linked to the shift from a seller’s market one in which there were more buyers
for fewer goods and services to a buyer’s market one in which there were more goods and services
than people willing to buy them. Marketing would no longer be regarded as a supplemental
activity performed after completing the production process. Instead, the marketer played a leading
role in product planning. Today’s fully developed marketing concept is a companywide consumer
orientation with the objective of achieving long-run success. All facets and all levels, from top to

viii | P a g e
bottom of the organization must contribute first to assessing and then to satisfying customer wants
and needs. From marketing manager to accountant to product designer, every employee plays a
role in reaching potential customers. Even during tough economic times, when companies tend to
emphasize cutting costs and boosting revenues, the marketing concept focuses on the objective of
achieving long-run success instead of short-term profits.

Performances of businesses could lead to adding value to the environment, communities,

customers and the bottom line for businesses of different sizes. Companies recognize that
successful business performance is the result of successful sustainability. Sustainable businesses
have the ability to adapt superiorly to change and usually create long-term financial value.
(Rainville 2012 and Spence 2012). It’s obviously agreed that Sustainability in today’s dynamic
market place requires quite understanding of shifts in customers’ preference and interest and
satisfying their need and wants than other competitors in the market.

St. George Brewery Share Company was established in 1922 by a Belgium nationalist Mussie
Dawiet Hale. The factory was set of contacts with reserved premise to make the country‟s primary
bottled alcoholic drink. St. George Brewery Share Company is foundnear to Mexico square, Addis
Ababa and currently owned by BGI Ethiopia, globallyadmired brewing company that functions
in numerous nations. BGI entered the Ethiopian market in 1998, before the privatization BGI had
a market share of about 70 percent. Until recently BGI owned three breweries including St.George
Brewery in Addis Ababa, Kombolcha Brewery and The Hawassa Brewery with a combined
production capacity of 3.6 million hectoliters of bottled and draft beer annually. In February 2018
BGI Ethiopia agreed to buy a 58 percent stake in Raya Brewery, placing BGI come to number
two in terms of market share in the brewery industry next to Heineken Ethiopia. BGI, owner of
St. George and Castel brands, recently bided for Raya at 2.5 billion birr and for the Zebider brand
from Unibar, the Belgium-based company via its owner, The Castel Group, as a strategy uses the
factories of these brands instead of constructing new factories to appease the local marketplace.

Thus, the purpose of the study was to analysis the marketing management strategy practices and
its contribution.

ix | P a g e
1.2 Statement of the Problem

In today’s competitive environment, the role of marketing strategy becomes mandatory for
manufacturers, suppliers, marketers and others who are directly or indirectly related to business.
According to Kotler and Armstrong (2008), marketing practice can be traced back to the very
beginnings of recorded history. Archaeologists working in the countries around the Mediterranean
Sea dug up signs announcing various events and offers. The Romans painted walls to announce
gladiator fights and the Phoenicians painted pictures promoting their wares on large rocks along
parade routes. During the Golden Age in Greece, town criers announced the sale of cattle, crafted
items and even cosmetics. However, as a consequence of long-term changes, such as the increase
of a larger and more diverse range of media, as well as the arrival of new technologies. Particularly
the Internet, consumers have become better informed than ever, and as a result, some of the
traditional advertising methods are no longer as effective as they used to be.

Studies show that market share of firms is secured by marketing strategies and it is aimed at
“unloading goods on resistant customers”. Creative marketing also plays a role of convincing
customers to buy (Whalley, 2010). Additionally, one of the major roles of marketing is to create
awareness and customer satisfaction (Patterson, 2010). On similar manner, brewery manufactures
are able to sell their products by creating effective and efficient marketing strategies of their
product.

Kotler and Keller (2006) maintain that a major component to the marketing process is insightful,
creative marketing strategies and plans that control marketing activities. Developing the right
marketing strategy over time often involves a blend of discipline, flexibility and innovation that
companies and business enterprises need to bear by in order to achieve a competitive advantage.
To enhance the competition requires concrete marketing knowledge with experiences and
accuracy in marketing decision-making. Booyens, 2011, point the importance of marketing
strategy for business sustainability by stating that Business need to be creative with newly
introduced products and services in order to gain business sustainability. Tomlinson (2011),
Propose marketing strategy among the strategies for success of Business and growth-orientated
must apply strategies. The success of a company and business enterprise often depends on its
marketing ability. Marketing has thus appeared as a core function for a company as well as

x|Page
business enterprise and is a process that engages the expectation and satisfaction of customer
needs where there is mutual benefit (Md. Aminul, Wasib and Idris, 2014).

According to contemporary marketing concepts, marketing is directed towards identifying the

needs and wants of consumers and planning to satisfy those needs while selling is concerned with
creating demand for the products that have already been decided. Hence, in this context, the
necessity of understanding the needs and wants of consumers to marketing could be taken to the
bone, the tendon, and the ligament of business without which any articulation can take place
(Gabdamosi, 2000 as cited in Tajudeen Olalekan Yusuf, 2009). Currently high expectations of
consumers need, technological discontinuities and an increase rate of environmental uncertainties
business managers face a big challenge. Due to this different factor business managers making
the right choice of marketing scheme. St. George Brewery Share Company might look through
certain difficulties while practicing the marketing strategies. The strategic marketing document
of the company reveals that, it lacks a well-structured and well formulated marketing strategy in
order to fulfill the customer requirement.

The study tried to analysis marketing strategies practiced and evaluate its contribution towards
business performance in St. George Brewery Share Company. This study arises from the need to
analysis practice of marketing strategies of the firm more effectively and efficiently. The share
company’s marketing strategies demand that firms continually assess its internal processes and
capabilities to remain competitive in the brewery industry.

1.3. Research Questions

This study was undertaken to analysis the marketing strategy practices and its contribution in St.
George Brewery Share Company. More specifically, the following basic research questions will
be addressed.

1. What are marketing strategies adopted by St. George Brewery Share Company?
2. To what extent are target marketing, segmenting and positioning addressed in the strategy?
3. What is the perceived level of marketing strategy competitiveness within Share Company?
4. What is the relationship between marketing strategy and company’s performance?

5. What is the contribution of marketing strategy towards performance in the Share

Company?
xi | P a g e
 1.4. Objectives of the Study

1.4.1. General Objectives

The general objective of the study is to analysis the marketing strategy practices and its
contribution in St. George Brewery Share Company.

1.4.2. Specific Objectives

Under this objective the study address the following specific objectives:

1. To determine marketing strategies adopted by St. George Brewery Share Company?

2. To determine extent that target marketing, segmenting and positioning addressed in the
strategy?
3. To determine perceived level of marketing strategy competitiveness within Share
Company?
4. What is the relationship between marketing strategy and company’s performance?
5. To find the contribution of marketing strategy towards performance in Share Company.

1.5. Hypotheses

Based on different conceptual frameworks from the research literature and objectives of the
present study, following hypotheses have been framed:

H1: Pricing Strategy has significant effect on Company’s performance.

H2: Promotion Strategy has significant effect on Company’s performance

H3: Product strategy has significant effect on Company’s performance

H4: Relationship marketing strategy has significant effect on Company’s performance H5:

Place Strategy has significant effect on Company’s performance

xii | P a g e
1.6. Significance of the Study

One of the core activities in a business company is having a well-developed marketing strategy.
The study was designed mainly to deal with marketing strategies adopted by St. George Brewery
Share Company, market segmentation, target marketing and positioning used in order to enhance,
maintain and attract customers and to determine perceived level of marketing strategy
competitiveness within Share Company and basic factors considered in formulating the marketing
strategy. The study has expected to give both practical and theoretical significance. It has worth
doing because it helps the company to look at its problems and provides additional input for top
management in designing ways to improve the current gaps in order to satisfy the required demand
of consumers. In line with this, the study has serve as an input for higher officials of the company
and concerned bodies to look at designing the strategy competitive in order to win the future
competition in this sector. The study has also expected to contribute towards the advancement of
theoretical knowledge and serves as a reference material for similar studies in future.

1.7. Scope of the Study

The scope of the research was delimited conceptually, geographically and methodologically.
Currently in Ethiopia there are numerous breweries. The Scope of this study is to focus on the
marketing elements associated with marketing strategy of St. George Brewery among the various
products within the existing brewery industry of the country. The factory distributes its products
throughout the country however the study will confine to limited respondents the most densely
populated part of the country and where majorities of the customers are expected to be found. The
research is limited to the major products of the factory i.e. St. George beer and pasteurized beer
(‘Draft’) without considering other products. Moreover the research was delimited to cross
sectional research by which data is collected at one time rather than longitudinal research method

1.8. Organization of the Paper

The structure of the final paper was organized as follows:

Chapter One: deals with introductory parts of the study, which includes: the introduction itself,
background of the study, statement of the problem, research objectives, hypotheses,
general objective, specific objectives, significance of the study, scope of the study,
and finally, limitation of the study.
xiii | P a g e
Chapter Two: presents related literature reviews both theoretical empirical and conceptual frame
work which are relevant to the research in connection with an analysis of potato
market value chain.

Chapter Three: focuses on methodology of the study. It includes: description of study area,
research design, target population, data source and type, sampling techniques, sample
size, data collection methods, and data analysis and presentation, reliability and
validity test, and ethical consideration.

Chapter Four: Data analysis, presentation and discussion

Chapter Five: is presented by incorporating summary, conclusion and recommendations based

on earlier findings and relevant literatures of the study.

Finally, the bibliography and appendices would be indicated on separate part towards the end of
the thesis.
.

xiv | P a g e
 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1. Definition of Terms

 Strategy is a careful plan or method or an adoption that serves or appears to serve an
important function in achieving evolutionary success. (Ludikova,2008,PP 14)
 Marketing Strategy is a set of integrated decision and actions by which a business expects
to achieve it marketing objectives and meet the value requirements of its customers.(Slater
and Olson,2001,PP1056)

 Target Marketing; is the identification of the market segments that are identified as being
the most likely purchasers of a company’s products. (Whalley,A.,2010,)
 Market Segmentation; is the process of dividing the total market for a particular product
or product category into relatively homogeneous segments or groups.(Ferrell and
Hartline,2010)
 Positioning; is the strategy that enables a firm to competitively and strongly place its brand
in the customers mind such that it becomes the most preferred brand.(Saxena,2002)
 Marketing Mix Strategies; As stated by Kotler (2003) ‘’Marketing mix describes the set
of tools that management can use to influence sales’’. In order to maximize sales we have
different kind of tools. The formulation is called the 4Ps-prodct, price, place and
promotion. It is a planned mix of the controllable elements known as a “mix” because each
ingredient affects the other and the mix must overall be suitable to the target customer.
Kotler (2003) also added other three Ps-People, Process and physical evidence. A
profitable formula for marketing operation is mostly that marketing mix changes as per
marketing conditions and with changing marketing factors.

This chapter gives an overview of literature that is related to the research problem presented in
this study. Marketing strategy overview, three generic strategies, elements of marketing strategy,
basic factors considered in the marketing strategy and major challenges in the implementation of
the marketing strategy were introduced in order to give a clear idea about the research area.

xv | P a g e
2.1. Theoretical Literature

2.1.1. Marketing Strategy Overview

Kotler and Armstrong (2012) defines Marketing strategy is a marketing logic by which the
company hopes to create customer value and achieve profitable customer relationships. From the
above definition we can understand that marketing strategy focuses on long term company
objective and maintains a long term relationships with the customers and it is a means to realize
the company’s stated goal. Marketing strategy involves two key questions: which customers will
we serve (segmentation and targeting)? And how will we create value for them (differentiation
and positioning)? Then the company designs a marketing program the four Ps that delivers the
intended value to the targeted customers (Kotler, 2012.)

In any business identifying the user of the products and services and as the same time value
creation with the customer is a key success for the company. Marketing strategy determines the
choice of target market segments, positioning, marketing mix, and allocation of resources.

Marketing strategy encompasses selecting and analyzing the target market(s) and creating and
maintaining an appropriate marketing mix that satisfies the target market and company.

Marketing strategies are the means by which marketing objectives will be achieved and are
generally concerned with the four major elements of the marketing mixes; product, price,
promotion and place (McDonald and Dunbar, 2007) Taking consideration of the above definition
companies rely on marketing strategies for established product lines or services by designing a
proper marketing mix business will sustain and customer’s need will get satisfy.

xvi | P a g e
2.1.2. Three Generic Strategies

Cost leadership

Porter (1990) pointed out that choosing a lower cost strategy means that the firm is able to produce
the product cheaper than its competitors and there can only be one cost leader. The sources of cost
advantage depend on the structure of the industry. It is necessary that the firm has a broad target
and serves more than one segment. A lot of companies may even operate down streams in the
industry. The firm often sells standard at acceptable quality and service.

According to Shapiro and Varian (1999) a firm that is able to sell more than other firms will have
the lowest average cost. This allows the firm to make money when others cannot. But to sell more
the firm will need to lower the price; this also means that the firm has a smaller profit on each unit
sold. If this works out the firm has to make up for the lost revenue in volume. In traditional
industries reducing the average cost of production is focusing on cutting down the unit cost of
production.

Differentiation

By choosing a differentiation strategy Porter (1990) means that the firm is able to provide unique
and/or superior value to the product more efficiently through quality, special features or after sale
service. There can be many differentiators in an industry. Differentiation allows the firm to add a
premium value to the product, which leads to a higher profit than that of the competitors. The
differentiated firm makes higher revenue per unit than the competitors, because of the buyer’s
special demand. Shapiro and Varian (1999) pointed out that if the firm’s strategy is differentiation,
the firm must add value to the product, thereby distinguishing the product from the competing
products.

Focus

As Porter pointed out that firms in the same industry can choose different competitive scopes in
the same segment. The basic choice is between a broad target and an arrow target within the same
segment. The narrow target is a well-defined market and the broad target is a larger market defined
in a wider perspective. According to Shapiro and Varian (1999) focus is achieved by personalizing

10 | P a g e
the product. If a company succeeds in creating a unique product it will have breathing room to both
personalize the pricing and to design the product. There are two ways of adding more value to a
unique product and thereby being able to focus on a narrow target. The first one is to personalize
or customize in order to generate more value for the customers; offer value adding services to
achieve a closer relationship between the customer and the personalized product. The second one
is to establish pricing arrangements that capture as many of the values as possible.

2.1.3. Competitive Strategies

It is discussed by Porter (1983) that every company has a competitive strategy; either it is official
or unofficial to the market. There is a frame with four key factors that the companies can formulate
into a competitive strategy. The first one is based on the company’s strengths and weaknesses and
describes its assets and skills in comparison to its competitors. Financial resources and technical
skills are included in this key factor. Another key factor is the value of the company’s employees.
This factor gives the company the motivation and need to actually take the strategy in to action.
Together with the strengths and weaknesses it decides the inner boundaries for which strategy the
company successfully can adapt. The external conditions are decided by the branch and the
surroundings. The possibility of development and threats for the company settle the competition
with the risks and possibilities.

The last key factor includes the expectations from the society, the policy of the government, social
commitments and development of the norm. According to Davidson (2001), a company’s
competitive strategy is choosing a favorable industry. There are two main questions and they both
have to work, otherwise there is no meaning for the company to go in to the industry. The first one
is the profitability in long term and which factors that determine that. The second one is which
components that are affecting the company’s position in the market.

2.2. Elements of Marketing Strategy

A Marketing strategy is made of several interrelated elements. The first and most important is
market selection which is directly related to choosing the markets to be served. Product planning
includes the specific product the company sells i.e. the makeup of the product line, the design of
individual offerings in the line. Another Element is the distribution system; the wholesale and retail
channels through which the product moves to the people who ultimately buy and uses it.
11 | P a g e
The overall communication strategy employs advertising to tell potential customers about the
product through radio, television, direct mail, and public print and personal selling to deploy a
sales force to call on potential customers, urge them to buy, and take orders. Finally, pricing is an
important element of any marketing program and is most directed marketing elements in the
creation of value to shareholders. The company must set the product prices that different classes
of customers will pay and determine the margin of commissions to compensate agents,
wholesalers, and retailers for moving the product to ultimate users (Mongay, 2006).

2.2.1. Segmentation

At its most basic level, the term “market segmentation” refers to subdividing a market along some
commonality, similarity, or kinship. That is, the members of a market segment share something in
common. The purpose of segmentation is the concentration of marketing energy and force on the
subdivision (or the market segment) to gain a competitive advantage within the segment. The term
market segmentation refers to subdividing a market along some community, similarity or affinity.
That is a member of the market segment share something in common.

As ferell and Hartline (2011) stated that, many firms today take segmentation to the extreme by
targeting small niches of a market, or even the smallest of market segments: individuals.

2.2.1.1. Traditional Market Segmentation Approaches

According to Ferell and Hartline (2011) writes that many segmentation approaches are traditional
in the sense that firms have used them successfully for decades. Some organizations actually use
more than one type of segmentation, depending on the brand, product, or market in question.

Mass Marketing- It seems odd to call mass marketing a segmentation approach, as it involves no
segmentation whatsoever. Companies aim mass marketing campaigns at the total (whole) market
for a particular product. Companies that adopt mass marketing take an undifferentiated approach
that assumes that all customers in the market have similar needs and wants that can be reasonably
satisfied with a single marketing program. This marketing program typically consists of a single
product or brand (or, in the case of retailers, a homogeneous set of products), one price, one
promotional program, and one distribution system. Mass marketing works best when the needs of
an entire market are relatively homogeneous.

12 | P a g e
Differentiated Marketing- Most firms use some form of market segmentation by dividing the
total market into groups of customers having relatively common or homogeneous needs, and
attempting to develop a marketing program that appeals to one or more of these groups.

This approach may be necessary when customer needs are similar within a single group, but their
needs differ across groups. Niche Marketing Some companies narrow the market concentration
approach even more and focus their marketing efforts on one small, well-defined market segment
or niche that has a unique, specific set of needs. Customers in niche markets will typically pay
higher prices for products that match their specialized needs. (Ferell and Hartline, 2011)

According to Ferell and Hartline pointed out that, although markets can be segmented in limitless
ways, the segmentation approach must make sense in terms of identifiable, substantial, accessible,
responsive, viable and sustainable criteria.

2.2.1.2. Bases for Segmenting Consumer Markets

Consumer markets can be segmented on the following customer characteristics.

2.2.1.2.1. Geographic Segmentation

Geographic segmentation divides the market into geographical units such as nations, states,
regions, counties, cities, or neighborhoods. The company can operate in one or a few areas, or it
can operate in all but pay attention to local variations. In that way it can tailor marketing programs
to the needs and wants of local customer groups in trading areas, neighborhoods, even individual
stores. In a growing trend called grassroots marketing, such activities concentrate on getting as
close and personally relevant to individual customers as possible.(Kotler and Keller, 2012).

2.2.1.2.2. Demographic Segmentation

In demographic segmentation, Kotler and Keller divide the market on variables such as age, family
size, family life cycle, gender, income, occupation, education, religion, race, generation,
nationality, and social class. One reason demographic variables are so popular with marketers is
that they’re often associated with consumer needs and wants. Another is that they’re easy to
measure. (Kotler and Keller, 2012). Age and life-Stage segmentation deals with segmenting the
market by age group like people less than 14. Family life cycle segmentation provide for the market

13 | P a g e
to be segmented into segments that are related to the change in pattern of consumption as a person
passes the life cycle like adolescent to young adult or bachelor to married person. Gender
segmentation is to segment the market in term of sex whether male or female. Income, education
and Occupation segmentation deals with the segmentation of the market by the salary earned, level
of education and work of the customers. Religion, race, generation, nationality, and social class
segmentation segments the market into group of customers having specific social background.
(Nasit, A, 2011).

2.3.1.2.3. Behavioral Segmentation

Behavioral segmentation is the most powerful approach because it uses actual consumer behavior
or product usage to make distinctions among market segments. Typically, these distinctions are
tied to the reasons that customers buy and use products. Consequently, behavioral segmentation,
unlike other types of consumer segmentation, is most closely associated with consumer needs. A
common use of behavioral segmentation is to group consumers based on their extent of product
usage heavy, medium, and light users. Heavy users are a firm’s bread-and butter customers and
they should always be served well. Marketers often use strategies to increase product usage among
light users, as well as nonusers of the product or brand. One of the best uses of behavioral
segmentation is to create market segments based on specific consumer benefits .(Ferell and
Hartline, 2011).

2.3.1.2.4. Psychographic Segmentation

Psychographics is the science of using psychology and demographics to better understand

consumers. In psychographic segmentation, buyers are divided into different groups on the basis
of psychological/personality traits, lifestyle, or values. People within the same demographic group
can exhibit very different psychographic profiles.(Kotler and Keller, 2012).

According to Ferell and Hartline (2011), Psychographic segmentation deals with state of mind
issues such as motives, attitudes, opinions, values, lifestyles, interests, and personality. These
issues are more difficult to measure, and often require primary marketing research to properly
determine the makeup and size of various market segments

14 | P a g e
2.3.1.3. Bases for Segmenting Business Markets

Major segmentation variables for business market are:-Demographic, Operating Variables,

Purchasing Approaches, Situational Factors, and Personal characteristics. The demographic
variables are the most important, followed by the operating variables down to the personal
characteristics of the buyer.(Kotler and Keller, 2012).

Business to Business market segmentation is an important asset for a company. It enables the staff
to manage operations more effectively and to achieve the desired results and objectives.

The degree to which segmentation is used in industrial markets can vary and it depends on the
changing conditions in its environment. It also depends on the needs of an organization and its type
of activities. (Hutt and Speh, 2001) Industrial market segmentation is a decision making process
that gives a firm an opportunity to use its marketing resources correctly and effectively in order to
implement its marketing strategy and overall objectives. Business market segmentation, or in other
words Industrial market segmentation, is not that well developed compared to consumer
segmentation. Even though many parts of consumer segmentation can be applied to industrial
segmentation, there are several other variables specifically applicable to industrial segmentation
(Croft, M., 1994).

2.2.2. Market Targeting

Targeting is the next step in the sequential process and involves a business making choices about
segment(s) on which resources are to be focused. Targeting is the actual selection of the segment.
A set of buyers sharing common needs or characteristics that the company decides to serve."
Companies use target marketing to tailor for specific markets. There are three major targeting
strategies: undifferentiated, concentrated, and differentiated. During this process the business must
balance its resources and capabilities against the attractiveness of different segments (Kotler, P,
2007).

Target marketing is thus defined as the identification of the market segments that are identified as
being the most likely purchasers of a company’s products. Specifically, the advantages of target
marketing are:

15 | P a g e
Marketing opportunities and unfilled gaps in a market may be accurately appraised and identified.
Such gaps can be real (e.g.sweet,strong, harsh or mild) or they can be illusionary in terms of the
way people want to view the product (e.g.happy,aloof, silly or moody).In the case of the former,
product attributes can fulfill these criteria whereas for the latter these attributes might well have to
be implanted in the minds of customers through an appropriate advertising message.

Market and product appeals through manipulation of the marketing mix can be delicately tuned to
the needs of the potential customer.

Marketing effort can be concentrated on the market segments which offer the greatest potential for
the company to achieve its goals be they goals to maximize profit or to secure the best longterm
position for the product or any other appropriate goal (Whalley,A,2010).

2.2.3. Positioning

Positioning is the use of marketing to enable people to form a mental image of your product in
their minds (relative to other products). Positioning is how the product or service is to be perceived
by a target market compared to the competition. It answers the question: “Why will someone in
the target market(s) buy my product or service instead of the competitions?”

An equivalent question is: “What should be the perceived value of my offering compared to the
competitions?” (Kotler, P, 2007).Positioning refers to how customers perceive a firm's offering
relative to competition. Positioning provides the bridge between targeting and the marketing mix.
If customers perceive the product unfavorably, it can be made more attractive by physically
altering it or by repositioning the product in the minds of customers.

Repositioning can dramatically alter consumer perceptions (Shaw, 2011). As whalley (2010) stated
that, after segmentation and market targeting, the next important step in developing an effective
marketing strategy is product positioning. Product positioning refers to the way in which an
organization sets itself apart in the market and how its products and services are perceived by the
target market as a whole; this incorporates the concept of all stakeholders of the company. To
compete successfully in a target market, an organization must have a form of differential
advantage. Positioning is about the communication of the overall value proposition such that it

16 | P a g e
creates and maintains this clearly to customers, thus creating a distinctive and ideally unique, place
in the market for the organization.

To be effective, the basic value proposition offered by an organization must be something that is
relevant to the target market, it must be differentiated from the competition and it must be
sustainable and communicated clearly to that market. This aspect fits more closely with
differentiation as a generic strategic option and this in part helps to explain the proliferation of
brands, products and services (Whalley,A,2010).

2.3. Marketing Mix Strategies

As stated by Kotler (2003) ‘’Marketing mix describes the set of tools that management can use to
influence sales’’. In order to maximize sales we have different kind of tools. The formulation is
called the 4Ps-prodct, price, place and promotion.

It is a planned mix of the controllable elements known as a “mix” because each ingredient affects
the other and the mix must overall be suitable to the target customer. Kotler (2003) also added
other three Ps-People, Process and physical evidence. A profitable formula for marketing operation
is mostly that marketing mix changes as per marketing conditions and with changing marketing
factors.

The marketing tools are classified in to four broad groups, called the four Ps of marketing: products,
price, place and promotion. To deliver on its value proposition, the firms first create a need
satisfying market offering (product). It must decide how much it will charge for the offering (price)
and how it will make the offering available to target consumers (place). Finally, it must
communicate with target customers about the offering and persuade them of its merits (Kotler and
Armstrong, 2012).

2.3.1. Product Mix Strategy

The product mix of an individual company can be described in terms of width, length, depth, and
consistency. The width refers to how many different product lines the company carries. The length
refers to the total number of items in the mix. The depth of a product mix refers to how many
variants of each product are offered. The consistency of the product mix refers to how closely

17 | P a g e
relate the various product lines are in end use, production requirements, distribution channels, or
some other way (Kotler, 2007).

Kotler (2000) defines that product is anything that can be offered to the market to satisfy a want or
a need. Products include physical good, services, experiences, events, persons, places, properties,
organization, information, and ideas. The customer will judge the offering by three basic elements:
product features and quality, service mix and quality, and price appropriateness.

As a result, marketers must carefully think through the level at which they set each product’s
features, benefits and quality. A product, service is the starting point of all marketing activities. A
product is a combination of different attributes. It comprises of physical factors such as color,
design, features, performance and non-physical factors like value, quality etc. Product planning
involves a variety of decision to be taken firmly to bring the product in the market. When we think
about product we have to take consideration: Design is very important in a today’s world as it is
all about gaining attention, focusing it on the product and influencing the purchase decision of the
customers. The design is directly linked to show success and makes the difference; Technology
must be used to develop user friendly products with product differentiation. Usefulness of product
can increase market share of the product as it is very essential component to have competitive
advantage in the market a product should be developed keeping extra uses in comparison to same
type of product available in the market. Product differentiation is established in the market by
increasing the usefulness of a product. Value is something which is a look around of companies
while developing a product so that if customers are paying then, they should not feel that they have
been charged more than the manufacturing cost of the product. Hence high performance product
which meets or exceeds a customer demand related to a product’s performance should be
developed.

Convenience is a factor related to usage of the product and the product should bring ease in life of
customer. Quality product is one of the marketer’s major tools (Kotler and Armstrong, 2012).
Packaging is used for raising the product’s value. Packaging increases the perceptual experiences
about the quality of the product. Packaging plays the role of attention-getter which starts the sales
process. It provides information about product attributes such as price, quality, quantity, instruction
for use and other product information (Koyade, 2014). Kotler, et.al. (1999) defines Branding has

18 | P a g e
become a central issue in a product strategy. On the one hand, developing a branded product
requires a great deal of long term marketing investments, especially for advertising, promotion and
packaging. Branding usually assures high or at least consistent quality and hence encourages repeat
purchase. Warranties give an assurance to the customer about after sales service which assures the
customer about the durability of the product and maintains satisfied customers in the market.

2.3.2. Pricing Strategies

Price is the only element in marketing mix that produces revenues, all other elements represent
costs. Price is also the most flexible marketing mix elements (Kotler and Armstrong, 2012). As
stated above after we produced our product we needs to make sales based on the prices that going
to be set. The important factor in pricing is the deciding the cost of the product, strategy for
marketing & its expenses related to distribution, advertisement expenses or any kind of price
variation in the market. The most important elements of an effective market strategy are the ability
to maximize and protect the price of the product. Since price is the final measure of customer value
and competitive advantage.

Methods of Pricing

A. Cost Based Pricing

Kotler, et.al (1999) defines that cost plus pricing is adding a standard markup to the cost of the
product. To calculate products cost we need to include the cost of production, promotion and
distribution. Add the profit level you want from the business to the product cost subtotal to
determine your product price.

The amount of profit you add to the product cost subtotal can be set according to three different
methods (a profit percentage with product cost, add a percentage to an unknown product cost and
blend of total profit and product costs). Each of the three costs based pricing methods described
begin with a product cost subtotal. Therefore, the company designs what it considers being a good
product, totals the cost of making the product, and sets a price that covers costs plus a target profit.

19 | P a g e
B. Competition Based Pricing

Consumers will base their judgments of a products value on the prices that competitors charge for
similar products (Kotler, et.al 1999). The big advantage of competition based pricing is that you
are focused on your industry and therefore your competition. An industry focus looks closely at
the types of existing and emerging competition. Once you know what your competitors are doing,
you can better decide how you will manage your business.

C. Value Based Pricing

Value based pricing means that the marketer cannot design a product and marketing program and
then set the price. Price is considered along the other marketing mix variables before the marketing
program is set. The company set its target price based on customer perceptions of the product
value. The targeted value and price then drive decisions about product design and what cost can
be incurred. As a result, pricing begins with analyzing customer needs and value perceptions and
a price is set to mach consumers’ perceived value (Kotler, et.al 1999).

2..3.3. Promotional Strategies

Promotion means activities that communicate the merits of the product and persuade target
consumers to buy it (Kotler and Armstrong 2012). Promotion helps the trader and sales force to
represent the product the consumers in an effective manner and bring them to buy. Promotion
consists of different blends of its components which are used to achieve the company’s marketing
goal.

Promotional Mix

According to Andrew (2010) the elements of promotional mix are: personal selling, sales
promotion, public relation, and advertising:-

Advertising
Advertising is a key component of promotion and is usually one of the most visible elements of an
integrated marketing communications program. Advertising is paid, non-personal communication
transmitted through media such as television, radio, magazines, newspapers, direct mail, outdoor
displays, the Internet, and mobile devices. Advertising promotes all types of products, including

20 | P a g e
goods, services, ideas, issues, people, and anything else that marketers want to communicate to
potential customers. Whether used in consumer or business markets, there are two basic types of
advertising: institutional and product advertising.
Institutional Advertising Institutional advertising promotes a firm’s image, ideas, and culture,
with the goal of creating or maintaining an overall corporate image.

Product Advertising Product advertising promotes the image, features, uses, benefits, and
attributes of products. Product advertising comes in many different forms. (Ferell and
Hartline,2011)In developing an advertising program, marketing managers must always start by
identifying the target market and buyer motives. Then they can make the five major decisions,
known as “the five Ms”: Mission: What are our advertising objectives? Money: How much can we
spend and how do we allocate our spending across media types? Message: What message should
we send? Media: What media should we use? Measurement: How should we evaluate the results?
(Kotler and Keller, 2012).

Personal Selling

Personal selling: any oral presentation in a conversation with one or more prospective purchaser
for the purpose of making sales (Kayode, 2014). Personal selling is an effective way to manage
personal customer relationships. The sales person acts on behalf of the organization. They tend to
be well trained in the approaches and techniques of personal selling. Personal selling is highly
persuasive and is often used in markets where personal choice figures strongly in the purchase.
(Andrew, 2010.)Compared to other types of promotion, personal selling is the most precise form
of communication because it assures companies that they are in direct contact with an excellent
prospect. Though one-on-one contact is highly advantageous, it does not come without
disadvantages. The most serious drawback of personal selling is the cost per contact. Personal
selling is also expensive due to the costs associated with recruiting, selecting, training, and
motivating salespeople. (Ferrell and Hartline, 2011).

Sales Promotion

Sales promotion, a key ingredient in marketing campaigns, consists of a collection of incentive

tools, mostly short term, designed to stimulate quicker or greater purchase of particular products

21 | P a g e
or services by consumers or the trade. Whereas advertising offers a reason to buy, sales promotion
offers an incentive. Sales promotion includes tools for consumer promotion (samples, coupons,
cash refund offers, prices off, premiums, prizes, patronage rewards, free trials, warranties, tie-in
promotions, cross-promotions, point-of purchase displays, and demonstrations), trade
promotion(prices off, advertising and display allowances, and free goods), and business and sales
force promotion(trade shows and conventions, contests for sales reps, and specialty advertising).
Sales promotions in markets of high brand similarity can produce a high sales response in the short
run but little permanent gain in brand preference over the longer term. In markets of high brand
dissimilarity, they may be able to alter market shares permanently. (Kotler and Keller, 2012).Sales
promotion involves activities that create buyer incentives to purchase a product or that add value
for the buyer or the trade. Sales promotion can be targeted toward consumers, channel
intermediaries, or the sales force. Sales promotion includes broad assortment of promotional
elements because it encompasses activities other than advertising, public relations, and personal
selling. (Ferell and Hartline, 2011)

Public Relations

Public relation is defined as the deliberate, planned and sustained effort to establish and maintain
mutual understanding between an organization and its publics, institute of public relations.

Public relations can be split into proactive communications designed to build understanding and
reactive communications designed to counter misunderstanding (Andrew, 2010.) Not only must
the company relate constructively to customers, suppliers, and dealers, it must also relate to a large
number of interested publics. A public is any group that has an actual or potential interest in or
impact on a company’s ability to achieve its objectives. Public relations include a variety of
programs to promote or protect a company’s image or individual products. The wise company
takes concrete steps to manage successful relationships with its key publics.(Kotler and Keller,

2012).

2.3.4. Distribution Strategies (Place)

Distribution is the physical movement of goods from producer to wholesaler, from wholesaler to
retailer and from retailer to consumer (Manmohan, 2012). It includes distribution channels,

22 | P a g e
warehousing facilities, mode of transportation and inventory control management thus it is a
mechanism through which goods and services are moved from the service provider and
manufacturer to consumer. If the product is a business product then a business team is required to
interact with different clients and ensure the availability of the product for them. Distribution has
a huge effect on the profitability therefore a firm should have excellent supply chain and logistics
management plan for distribution. All the four variables of marketing mix are interconnected. By
increasing the price of the product, the demand of the product will be lesser distribution points will
be required.
Kotler(2003) recognized that distribution channels are dynamic and they can create a competitive
advantage when used right, but become a competitive liability when used liability. The overall
marketing mix can result in dynamic modeling based on customer feedback for improving a
product and the same can be launched as the upgraded product.
Channel of Distribution
Channel of distribution consists of a network of intermediaries those managers that manage the
flow of goods and services from the producer to the final customer. The distribution system
consists of channel intermediaries that provide a link between producers and final consumers. The
idea that marketing system uses channels that maximizes efficiency and effectiveness, minimizes
costs, and delivers the greatest customer satisfaction (Kotler and Armstrong, 2010).
Merchant middlemen: include merchant wholesalers and retailers who take title to and resell the
goods. Agent middlemen: include agents, brokers and manufacturer’s sales branches and offices
who do not take title to the goods involved. They rather negotiate purchase, sales or both. The
longest most indirect channel includes producer, one or more wholesalers or agents, retailers and
consumers. This channel is the most appropriate when the producer’s objective is to achieve
maximum market penetration with intensive distribution.
The shortest channel, from producer to consumers, offers the most direct and quickest distribution
route because no intermediaries are involved. It is easiest to manage and control (Anderson and
Vince, 2000).
Ferrell and Hartline, 2011 Industrial users shop differently and have different needs than consumer;
they use different channels of distribution. The five common channels for business goods are:

23 | P a g e
Channel A: Producer Industrial user: This is the most common method of distribution for major
equipment used in manufacturing and other business. The manufacturer’s sales force calls on the
industrial user to sell goods and services.
Channel B: Producer Industrial distributors Industrial users this channel is used most often for
small standardized parts and operational supplies needed to run a business. Industrial wholesalers
(distributors) take ownership of products, stock them, and sell them as needed to industrial users.
Channel C: Producer Agents Industrial distributors Industrial users Small manufacturers who do
not have the time or money to invest in a direct sales force may prefer this channel. The agent sells
the goods to the industrial wholesaler who stores, resells, and ships them to the industrial users.
The advantage of this arrangement is that both agent and industrial wholesalers are likely to be
experts well known in the industry. Their reputation and services may be impossible for a small
manufacturer to duplicate on its own.
Channel D: Manufacturers/Producers Agents Industrial users: This is another channel used when
a manufacturer does not want to hire its own sales force. The agent represents the manufacturer
for sale of the goods but does not take position or title. The merchandise is shipped directly from
manufacturer the industrial user. Construction equipment, farm products, and dry goods are often
marketed in this way. In fact, according to Ferrell and Hartline, (2011) the least commonly used
channel in the consumer market; direct distribution (channel A) is the most commonly used in the
industrial market.

24 | P a g e
Conceptual frame work

’Marketing mix describes the set of tools that management can use to influence sales’’. In order to
maximize sales we have different kind of tools. The formulation is called the 4Ps-prodct, price,
place and promotion. It is a planned mix of the controllable elements known as a “mix” because
each ingredient affects the other and the mix must overall be suitable to the target customer. Kotler
(2003) also added other three Ps-People, Process and physical evidence. A profitable formula for
marketing operation is mostly that marketing mix changes as per marketing conditions and with
changing marketing factors. The marketing tools are classified in to four broad groups, called the
four Ps of marketing: products, price, place and promotion. To deliver on its value proposition, the
firms first create a need satisfying market offering (product). It must decide how much it will charge
for the offering (price) and how it will make the offering available to target consumers (place).
Finally, it must communicate with target customers about the offering and persuade them of its
merits. In this study dimensions of marketing management strategy in the Brewery Factor were
Promotion, Place, Price, Relationship Marketing and product strategy

Product

RelationShi Price
p
ORGANIZATIONAL
PERFORMANCE

Place Promotion

Figure 2.1 Conceptual Frame Work

25 | P a g e
 CHAPTER THREE

METHODOLOGY OF THE STUDY

3.1. Introduction

In this section, what is going to be done and where, how it was done, what data was needed, the
proposed tools to be used in the data collection and the methods of analyzing the data and the
expected sign of explanatory variables on the response variable was precisely described.

3.2. Research Approach and Research Design

According to (Kothari..C.R, 2004) explained that research approaches are broadly classified under
two categories: quantitative and qualitative. The former involves the generation of data in
quantitative form which can be subjected to rigorous quantitative analysis, while the latter is
concerned with subjective assessment of attitudes, opinions and behavior where results either in
non-quantitative form or in the form which are not subjected to rigorous quantitative analysis. The
inferential research approach is among the sub-categories of quantitative approach and its main
purpose is to form a database from which to infer characteristics or relationships of population.

Accordingly, this study utilized both quantitative and qualitative (mixed research) approaches. In
its quantitative approach in general and inferential approach in particular, the study was involved
sample respondents and its determinants where findings would inferred to the entire population.
Besides, qualitative approaches also included to complement the findings of quantitative analysis.

Since the research topic is assessment of marketing strategy practices in ST.GEORGE

BREWERY, so the research method is descriptive studies. To undertake this study, a case study
design was employed by using both qualitative and quantitative approaches in order to obtain the
desired results of the company and to explore detailed evidence about the problem. Bringing
qualitative and quantitative evidence and methods together is the special strength of the case study
method. Although other qualitative methods (such as ethnography) have historically used
quantitative techniques and vice versa (such as the use of focus groups as a complementary parts
of doing surveys).The case study was more appropriate because of its broader applicability and
persistent integrating theme. In the field of evaluation research and indeed in several other applied

26 | P a g e
fields, the case for a multi-strategy research approach seems to have acquired especially strong
support (Tashakkori and Teddlie, 2003).

3.3. Population and Sampling Technique

The target populations of the study was higher officials (top management body) and all employees
of marketing department of ST.GEORGE BREWERY. The total number of employees who are
working in marketing and distribution units is 135. Thus census sample size determination was
used since the number of target population was manageable. Moreover employees at supervisor
and management position were included in the interview. So the researcher will distribute a self-
administered questionnaire to all marketing staff. Interview questions was forwarded to top
management of the company. And the data will collect using qualitative approach by employing
in depth interview with top management. The sampling procedure is non-probability sampling and
the selections of the respondents was determined by using purposive sampling research method
because no other departments are concerned about marketing strategies and the researcher took all
the respondents of marketing staffs as a total population of the study.

Hans et.al (2004) demonstrated that, in purpose sampling also called non-probabilistic sampling,
samples are selected more or less deliberately. This can be done on the basis of the judgment of
the sampler of what is a desirable sample or whatever sample happens to be convenient to collect.

3.4. Data Type, Source, and Method of Data Collection

In order to address the stated objectives, the study will mainly utilize both quantitative and
qualitative type of data. This data was collected from both primary and secondary source of data.

Primary data is the original data or information which collected by the researcher for the project
on hands (Zikmund.W.G, 2003). Primary data was collected through structured questionnaire
adapted from previous researches on the subject that prepare for the survey based on literature
review and objective of the study. The secondary data sources was collected from different
published and unpublished material like journals, articles, text book, organization manuals, reports
and any other secondary source which support the study area.

The questionnaire part is consists of three sections. The first one is the general information section
contains the overall information of the respondents; such as, the respondents gender, age, marital

27 | P a g e
status, educational background, work experience and position of the respondents in the
organization. The second part is the essential information section that covered the research
questions on marketing strategy practices of the company. And the third part was questionaries’
related with marketing management strategy contribution for the company performance and
relationship between marketing management strategy and company’s performance.

The designed questionnaire and interview questions were adopted from different sources getting
from internet websites on the same topic entitled in different service organization and from the
researcher itself. The variables used in this study are:-Marketing the strategy that consists of market
segmentation, positioning and target marketing.

3.5. Methods of Data Analysis

The collected data was analyzed and interpreted by using both qualitative and quantitative
techniques. The data collected by open ended interview questionnaires will analyzed qualitatively.
Closed ended questionnaires will analyze quantitatively. In this study descriptive statistical tool
was used in the analysis part to measure the variables. The descriptive statistics utilized based on
frequency tables to provide information on demographic variables as well as the research question
variable. Accordingly the results of the analysis was interpreted.

Moreover inferential analysis of the survey data and variables for the study was apply in
collaboration with some important tests such as validity and reliability of data. The
correlation and multiple regression analysis between variables were included, because it helps to
show association or relationship between variables. The researcher also plans to employ a
computer software program like statistical package for social science (SPSS) version 25 for
necessary statistical computation.

3.6. Reliability Test

Reliability is the degree to which the measure of a construct is consistent or dependable. The
reliability test was executed by Cronbach's alpha coefficient and items which scored above the
acceptable value was retained. Tavakol & Dennick (2011) if a test has more than one concept or
construct, it may not make sense to report alpha for the test as a whole as the larger number of

28 | P a g e
questions will inevitable inflate the value of alpha. In principle therefore, alpha should be
calculated for each of the concepts rather than for the entire test or scale. The coefficient of alpha
varies from 0 to 1 and the value of 0.5 or less is generally indicates unsatisfactory internal
consistency reliability and unacceptable (Ramayah, 2011).

3.7. Validity Test

Validity is the extent to which differences found with a measuring instrument reflect true
differences among those being tested (Kothari, 2004). In other words, Validity is the most critical
criterion and indicates the degree to which an instrument measures what it is supposed to measure.
In order to ensure the quality of the research design content and construct validity of the research
would be checked. According to Kothari (2004) Content validity is the extent to which a measuring
instrument provides adequate coverage of the topic under study. If the instrument contains a
representative sample of the universe, the content validity is good. Its determination is primarily
judgmental and intuitive. It can also be determined by using a panel of persons who shall judge
how well the measuring instrument meets the standards, but there is no numerical way to express
it.

3.8. Ethical considerations

In the study all participants and data collected will remain confidential and identities of respondents
remain anonymous. Moreover, the privacy of all respondents will respected in the reporting of this
research. No details of individuals involved in this research.

Informed consent is a written statement that explains aspects of a study to participants and asks for
their voluntary agreement to participate before the study begins. (Neuman, 2006).

In the study, each participant was provided with an information sheet at the beginning of the
research questions explaining the purpose of the research prior to each questionnaire and interview.
And the researcher got consent from the participants before the survey and interview was made

29 | P a g e
 CHAPTER-FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4. Introduction

This chapter contains brief description of the marketing strategy and its contribution: Product,
price, promotion, place/distribution, and relationship evidence on business performance with
regard to S.t George’s brewery S.C. The information presented in this chapter is obtained through
both primary data and secondary sources. For the primary data both interview and 135
questionnaires were distributed to employees of the company however 130 distributed
questionnaires were completed and retrieved successfully, representing 96% response rate. . This
section also discusses the demographic characteristics of respondents, general information about
marketing strategy. Moreover, it shows the Multicolinearity and hypothesis testing. Finally, it
presents the correlation and regression analysis to know the level of association and the explanatory
power of the marketing strategy on the company’s business performance.

4.1. Demographic Profile and General Information

This part of the analysis presents the personal information of the respondents. The presentation for
sex and age is done together and is the first to be presented. Following sex and age, description of
educational background of the respondents is presented. The work experience as well as position
of the workers is presented next to educational background.

30 | P a g e
Table 4. 1 Demographic Characteristics of Respondents general
Demographic Description Respondents
Profile Frequency Percent
Sex Female 58 44.61
Male 72 55.38
Total 130 100
Age Less Than 28 51 39.23
28-38 45 34.61
39-48 31 23.84
Above 48 Years 3 2.302
Total 130 100
Educational Masters’ Degree and Above 17 13.07
Qualification First Degree 81 62.30
Certificate up to Diploma 23 17.69
Grade 12 Completed 9 6.92
Total 130 100
How long Less than 1years 7 5.38
have you 1-2years 24 18.46
been 2-4years 25 19.23
employee of
4-6years 37 28.46
St. George
Brewery 6-8years 28 21.53
Factory above 8years
9 6.92
Total 130 100

Respondents were characterized based on their gender, age and level of education as indicated in
table 4.2.1 above. In terms of gender, 58 respondents who covered 44.6% the respondents were
found to be female while 72(55.4%) were male. In terms of age, 51respondents who covered 39.2%
of the respondents were found to be below 28 years old, 45 (34.61%) were between 2838 while
31 (23.84) were between the age of 39-48 years and the remaining 3 (2.3%) were greater than 48
years. In terms of level of education, 17(13.07%) of the respondents have master’s degree and
above, 81(62.3%) have found to have first degree, 23(17.9%) have certificate up to diploma,
9(6.92%), were below grade 12.

From the total sample of respondents those who participate as respondent from the sample 7 (5.38)
have less than 1 year years of experience at the company, 24 (18.46) 1-2years, 25 (19.32) 2-4years,

31 | P a g e
101 (28.69%) 4-6years, 76 (21.59%) 6-8years, 25 (7.10%) above 8years of employments
experience at the St. George’s S.C.

4.2. Company’s STP Strategy Practice

Any company directly or indirectly employs the marketing strategy elements to achieve its
objectives. Those elements are selection of target customers, segmentation strategies and
marketing mix strategy elements. The following tables show employees response with regard to
St. Georges Segmentation, Targeting and positioning practice.

Table 4. 2 Employees’ Response about Market Segmentation, Targeting and Positioning

Statement Response Frequency Percentage

1. What are the bases Geographic Location 124 95.38

of segmenting the
Demographic 28 21.54
market?
Behavioral 8 6.15

Psychological or
Lifestyle 16 12.31
Total 65
130
2. Who are the Individual
company’s major Customers/Consumers 112 86.15
target groups? Hotels , Restaurants
(Multiple Responses and Groceries 84 64.62
are Possible)
Other Intermediaries 60 46.15

Total
0 0.00
3. The company Strongly agree 44 33.85
effectively uses
marketing strategy to Agree 74 56.92
position it product line
Undecided 0 0.00
in the market.
Disagree 12 9.23

Strongly disagree
0 0.00
Total 65
130
Source: Own Survey, 2021/22

32 | P a g e
Table above indicates that the majority of respondents said that the bases of the company’s market
segmentations are geographic location which accounts 124(95.38%) of respondent, 28(21.54%) of
the respondent replied as demographic segmentation, 16(12.31%) respondents answered as the
basis of segmentation is psychographic or lifestyle segmentation and the least number of
respondents 8(6.15%) said that it is based on behavioral.
From this responses, we can concluded that the basis of the company’s market segmentation is the
geographic location that can take many forms i.e. from urban to rural, north to south, warm areas
to cold areas etc. Besides, the respondent replied that the basis of the company market
segmentation is based on the facility of infrastructures like road to transport beers, electricity to
stay it with a refrigerator, telecommunication, cultures, and religion. It is believed that, even though
all the alternatives were the basis of market segmentation, geographic segmentation is the common
form of the company’s market segmentation mechanism.

The one and most crucial activity of the marketing strategy is the selection of target markets or the
identification of the products to whom delivered. With the current state of the economy, having a
well-defined target market is more important than ever. Identifying the target market is an essential
step in the development of the company¡¦s marketing strategy and it will help the company to use
its resources more wisely. As the above table shows, 112(86.15%) of the respondents said that the
target markets are individual customers. 84(64.62%) of the respondents replied that the target
customers are hotels, restaurants and groceries whereas the rest of 60(46.15%) of the respondents
said the target customers are other intermediaries like retailers and whole sellers.
Thus, the company¡¦s major target customers are individuals who have the interest of drinking
bottled beer and draught beer. Moreover, as the researcher got additional information from the
respondents, as a policy of the company, the target customers are any individual:
 Who are more than 18 years old; hence, below 18 years old, they were tanagers and not
allowed to drink beer at this stage
 Who have a good income level
 Who have not any medical problems
 Who are not prohibited by religion
As can be seen from table above regarding the uses of marketing to form a mental image of
products in customer’s mind, most of the respondent which accounts 56.9% of the total population

33 | P a g e
agree, among the total population 33.8 % strongly agree with the statement and the rest 9.2%
disagree. The table clearly reveals that majority of the respondents have the some opinion
regarding the company’s uses of marketing to form a mental image of products in customers mind
effectively and it’s a basis for assuring brand positioning and loyalty is in a good stage. The
descriptive statistics of brand image effectiveness presented above computed mean value 1.85 with
standard division 0.83 shows that the most of respondents agree with the companies uses of
marketing to form a mental image of products in customers

4.3. Regression Analysis

In order to determine the extent to which marketing strategy influence and contribute for
company’s business performance, the regression analysis was conducted. The results are discussed
and summarized in the following sub-titles. In this section, the research questions that address the
level that product, price, promotion, place and relationship strategy influence and contribute for
performance was considered.

In the process of multiple regression analysis, the association between the criterion variable
(Company’s Business Performance) and the predictor variables (product, price, promotion, place
and relationship strategy) has been estimated using Pearson product moment correlation
coefficient. Similarly, the correlation among predictor variables themselves has been computed to
check basic assumptions like multi collinearity.

Before running the main regression analysis, the basic assumptions for regression like, linearity
normality and multi collinearity assumptions were checked and all of them were not violated.

4.3.1 The Assumptions for Testing Regression Analysis

According to Hair et al., 2006 the assumptions testing regression analysis should be done because
the violations of the assumptions affect resulting use of multivariate statistical methods. Therefore,
Hair et al., (2006) suggested that several assumptions regarding the use of multivariate statistical
tools, namely normality, homoscedasticity, linearity, and multicollinearity should be applied
before performing any multivariate analysis. Accordingly, the researcher has tried to confirm that
the obtained data truly represented the sample and obtained the best results.

34 | P a g e
 4.3.1.1 Test of Normality

An evaluation of the normality of data is a precondition for many statistical tests as normal data is
an underlying hypothesis in parametric testing. So the data set is tested for normal distribution.
The term normal distribution refers to a particular way in which observations will lean to pile up
around a particular value rather than be spread evenly across a range of standards. In this study the
Kolmogorov-Smirnov test is used for checking the normality.

If the Kolmogorov-Smirnov Z test give in a significance level of less than 0.05, it means that the
distribution is not normal. If the Kolmogorov-Smirnov Z tests given in a significance level of more
than 0.05, it means that the distribution is normal.

Kolmogorov-Smirnova Shapiro-Wilk

Statistic Df Sig. Statistic df Sig.

Marketin .069 130 .200* .980 130 .082

g

*. This is a lower bound of the true significance.

a. Lilliefors Significance Correction

Table 4. 3 Tests of Normality

The normality test result as shown in the above table was appeared in the SPSS Output window.
The p values .200 and .082 from Shapiro-Wilk test of normality are both greater than
0.05 which imply that it is acceptable to assume that the weight distribution is normal.

4.3.1.2. Test of Linearity

Multiple linear regression models assume there is a linear relationship between the independent
variables and the dependent variable. It refers to the degree to which the change in the dependent
variable is related to the change in the independent variable. To determine whether the relationship

35 | P a g e
between the dependent variable and the independent variables is linear; plots of the regression
residuals through SPSS software had been used.

There is another useful graph that the researcher can inspect to see if a distribution is normally
distributed is called a P–P plot (probability–probability plot). According to Hair et al. (1998), the
plots are different from residuals plots in that the standardized residuals are compared with the
normal distribution. In general, the normal distribution makes a straight diagonal line, and the
plotted residuals are compared with the diagonal. If a distribution is normal, the residual line will
closely follow the diagonal (Hair et al., 1998). Therefore, as indicated in the figure below, the data
were normally distributed.

Figure 4. 1 Normal P-P Plot of regression

36 | P a g e
From the above figure, we can see that residuals of the model are approximately linear distributed,
because a straight line seems to fit the data reasonably well.

Hair et al. (2006) also suggest that histogram is another method to use for comparing the observed
data values with a distribution approximating the normal distribution. It is argued that the
histogram of the research variables supports the expectation for the normal shape distribution of
data. The following figure shows the histogram generated for the study variables.

Figure 4. 2 Histogram

Multi-collinearity

Multicollinearity occurs when two or more of the independent variables are highly correlated that
certain mathematical operations are impossible. The correlation between independent variables

37 | P a g e
was such that multicollinearity is not a concern because multicollinearity will be created while
results of the correlation coefficients are above 0.80 and to be considered-very high (Hair et al.
2006). However, there are two general procedures for assessing collinearity, including tolerance
and variance inflation factor (VIF) (Pallant, 2007). The data will be absence of multicollinearity
while VIF is less than ten, and tolerance value of greater than 0.10 but less than one (Robert Ho,
2006). Accordingly, as indicated in table below, the collinearity statistics analysis of variance
inflation factors (VIF) value ranges from 1.066 to 1.472 and Tolerance value ranging with 0.679
to 0.938. Therefore, these results indicated that there was no collinearity problem in this study.

Table 4. 4 Collinearity Statistics

Variable Tolerance VIF

Product .938 1.066

promotion .679 1.472

Price .726 1.377

Place .915 1.093

Relationship .808 1.237

4.4. Marketing strategy adopted by St. George Brewery Factory.

4.4.1. EXPLORATORY FACTOR ANALYSIS

For achieving the first objective with the help of through literature Review was used and on the
behalf of this review following determinants were identified in regards to strategic marketing
management in Brewery Factory.

This section deals with the factor analysis carried out on the data in order to define a set of common
underlying dimensions, known as factors, from among the measurement items
(variables) used in the questionnaire. According to Hair et al., (1998), factor analyses first carry
out an exploratory factor analysis on the data. In this section, first the exploratory factor analysis
will be discussed, followed by the reliability analysis. The main purpose of exploratory factor
analysis is used to define the dimensions assumed to produce the original variables (Gorsuch,

38 | P a g e
1983). Hence, it can be applied to data summarization and data reduction without losing much of
the information contained in the variables. Strategic marketing management dimensions were
factor analysed using principal component analysis with varimax rotation. The purpose was to
determine the main Brewery Factory strategic marketing management dimensions.

Before conducting factor analysis, the validity of data for factor analysis has been conducted with
the help of KMO measures and Bartlett‟s test of Sphericity. KMO value was scored 0.778,
indicating sufficient items for each extracted factor. Bartlett’s Test was significant
(Chisquare=1782.304, DF=253, Sig. =0.000) meaning that there are strong correlations between
the items in each factor. Therefore, it was justified to conduct exploratory factor analysis. The
results are reported in Table below.

Table 4. 5 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .778

Bartlett's Test of Sphericity Approx. Chi-Square 1782.304

Df 253

Sig. .000

The 23 variables representing attributes were reduced to five factors, explaining 67.165 per cent of
total variance in the data. This indicates that correlation of the items with the factors on which they
were loaded was reasonably high and the following communality values are displayed in the table.

Table 4. 6 Scale component communalities

Communalities

Extractio
n
Initial
STP1 1.000 .627

STP2 1.000 .711

STP3 1.000 .710

39 | P a g e
STP4 1.000 .708

STP5 1.000 .759

STP6 1.000 .655

STP7 1.000 .687

STP8 1.000 .610

STP9 1.000 .549

STP10 1.000 .633

PROD1 1.000 .703

PROD2 1.000 .596

PROD3 1.000 .830

PROD4 1.000 .529

REL3 1.000 .596

REL4 1.000 .701

REL5 1.000 .711

REL6 1.000 .462

ENTO1 1.000 .736

ENTO2 1.000 .789

ENTO3 1.000 .775

ENTO4 1.000 .565

ENTO5 1.000 .805

Extraction Method: Principal

Component Analysis.

40 | P a g e
From the above table it was found that the variance of 23 variables ranges from 0.462 to 0.805.
This indicates that ranges of variances vary from 46.2% to 80.5%, which is quite appropriate for
factor segmentation process. The following 23 variables and their factor segmentation is
designated in the table 4:3 given below.

Table 4. 7 Total Variance Explained

Extraction Sums of Rotation Sums of Squared
Squared Loadings Loadings
Initial Eigenvalues
% of % of
Com Varianc Varianc
pone % of Cumulati e Cumulati e Cumulati
nt Total Variance ve % Total ve % Total ve %
1 5.641 24.524 24.524 5.641 24.524 24.524 3.826 16.636 16.636

2 3.984 17.320 41.844 3.984 17.320 41.844 3.263 14.189 30.825

3 2.379 10.342 52.186 2.379 10.342 52.186 3.022 13.138 43.964

4 1.856 8.070 60.256 1.856 8.070 60.256 2.692 11.705 55.668

5 1.589 6.909 67.165 1.589 6.909 67.165 2.644 11.497 67.165

6 .938 4.080 71.245

7 .801 3.484 74.729

8 .684 2.973 77.702

9 .610 2.651 80.353

10 .585 2.541 82.895

11 .524 2.280 85.175

12 .466 2.024 87.199

13 .454 1.974 89.173

14 .397 1.728 90.901

41 | P a g e
15 .375 1.629 92.530

16 .346 1.506 94.036

17 .320 1.389 95.425

18 .284 1.233 96.659

19 .246 1.068 97.727

20 .208 .906 98.632

21 .156 .677 99.309

22 .136 .589 99.899

23 .023 .101 100.000

Extraction Method: Principal Component Analysis.

All five factors extracted showed an Eigen value above one. The Initial Eigen values of the five
factors are 5.641, 3.984, 2.379, 1.856 and 1.589 respectively, which indicates that the five factors
extracted are contributing well to the explanation of variances. As mentioned above the five factor
extractions represent a total of 67.165 per cent of the 23 items which confirmed the scale
representation of all marketing strategy related items found within the scale. This shows that the
factor segmentation is meaningful and the following table indicates the factor loadings.

Table 4. 8 Rotated Component Matrix

Component

1 2 3 4 5

PROD3 .886

PRIC5 .871

PROD1 .824

PROD2 .759

PROD4 .702

42 | P a g e
PROM5 .813

PROM 4 .810

PROM 3 .805

PROM 2 .755

PROM 1 .640

PRIC3 .852

PRIC 2 .850

PRIC 1 .786

PRIC 4 .697

PLC6 .786

PLC 7 .784

PLC 8 .750

PLC 9 .629

PLC 10 .531 .588

REL4 .814

REL5 .790

REL3 .722

REL6 .623

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

43 | P a g e
a. Rotation converged in 5 iterations.

The final solution retained five factors that represent main dimensions of marketing strategy in
brewery factory. The five factors are categorized as follows.

The test of reliability is an important test of measurement. Reliability has to do with accuracy and
precision of a measurement procedure. Results showed that Cronbach's alpha coefficients of the
extracted factors ranged from 0.776 to 0.880. All constructs acquired an acceptable level of a
coefficient alpha above 0.7, indicating that the scales used in this study are reliable. Thus, these
values suggest good internal consistency of the factors. Therefore, Product, Promotion, Price, Place
and Relationship marketing strategy can be regarded as reliable underlying dimensions of strategic
marketing management in the brewery factory. The test was performed to measure the reliability
of the questionnaire and Cronbach’s Alpha value is given in the following Table. Table 4. 9
Cronbach’s Alpha value
Reliability Cronbanch’s Alpha
Product strategy 0.880
Promotion strategy 0.873
Price strategy 0.854
Place strategy 0.779
Relationship Marketing strategy 0.776

Table 4. 10 Summary of Results for Factor Analysis of the Scale Dimensions

Factors Eigen Loading Alphas Items Variance
Value Explained
Factor1: Product strategy 5.641 0.880 5 16.636
PROD3 .886
PRCI5 .871
PROD1 .824
PROD2 .759
PROD4 .702
Factor2: Promotion 3.984 0.873 5 14.189
PROM 5 .813
PROM 4 .810

44 | P a g e
PROM 3 .805
PROM 2 .755
PROM1 .640
Factor 3 : Price 2.379 .854 4 13.138
PRCI 3 .852
PRCI 2 .850
PRCI 1 .786
PRCI 4 .697
Factor 4: Place/Distribution 1.856 .779 5 11.705
PLC1 .786
PLC 2 .784
PLC 3 .750
PLC 4 .629
PLC 5 .588
Factor5: Relationship 1.589 .776 4 11.497
Marketing
REL4 .814
REL5 .790
REL3 .722
REL6 .623
5 Factors 23 67.165

4.5. The Relationship Between marketing strategy and Brewery Factor

performance

Firstly, it is necessary to establish the strength of the relationship between Brewery Factor
performances with their marketing strategy. Correlations between variables are presented in Table
below. Really, most of the correlation coefficients are quite weak and it is an evident that some the
variables are related to performance of Brewery Factor share company with strategic marketing
management.

The correlation matrix of strategic marketing management variables namely Product strategy,
Promotion strategy, Place strategy, Price orientation and Relationship marketing strategy with
dependent variable Brewery Factor performance is presented in the table below

45 | P a g e
Table 4. 11 correlation matrix

Sig. (2-tailed) Performance

Product Pearson Correlation .158 .125

Promotion Pearson Correlation .000 .345**

Price Pearson Correlation .035 .185*

130

Place Pearson Correlation .000 .381**

Relationship Pearson Correlation .498 .060

46 | P a g e
It is observed from the above Table, the inter-correlation between performance of Brewery share
factory and marketing management strategy variables reveal the fact that Promotion (0.345) and
Place/Distribution (0.381) are the two variables which are moderately significant and positively
correlated. A considerable amount of significance is also observed from price orientation of
marketing management strategy factors. Further, most of the marketing management strategy
variables are moderately, significantly and positively correlated with the dependent variable
performance except Relationship marketing management and product strategy. Among the
marketing management strategy factors, the lower correlation with performance is found with
relationship marketing management and product strategy.

4.6. Contribution of Marketing Management Strategy towards Performance in

Brewery Share Factory

4.6.1. STEP WISE MULTIPLE REGRESSION

In this study, regression results are found as per the objectives. The five dimensions of marketing
management strategy collectively form the components that determine the performance of Brewery
Factor; all five dimensions were taken as predictors while performance was taken as the criterion.
Step Wise Multiple Regression Analysis of performance Y- Company Business performance score
was performed with overall score of the variables X1- Product strategy, X2- Promotion, X3- Price,
X4- Place and X5- Relationship marketing and the following regression model is fitted for
performance :

Y = bo + b1X1 + b2 X2 +b3 X3 + ……….

Where b1, b2, b3, b4 and b5 are partial regression coefficients; bo-constant the results are
presented in the following

47 | P a g e
Table 4. 12 Coefficientsa
Standard
ized
Coeffici 95.0%
Unstandardize ents Confidence Collinearity
d Coefficients Interval for B Statistics

Std. Lower Upper Toleranc

Error Bound Bound e
Model B Beta T Sig. VIF

1 (Constant) 2.03 .441 4.607 .000 1.158 2.902

0

Product .105 .047 .159 2.248 .026 .198 .013 .938 1.066

Promotion .348 .058 .497 5.957 .000 .232 .464 .679 1.472

Price .054 .052 .084 1.041 .300 .049 .157 .726 1.377

Place .405 .056 .518 7.209 .000 .294 .516 .915 1.093

Relationship .123 .055 .172 2.253 .026 .232 .015 .808 1.237

a. Dependent Variable: Performance

Regression Fitted: Y = 2.030 +.105 X1+ .497 X2 + .405X4 +.123X5

In the table, indicated how much the dependent variable varies with an independent variable, when
all other independent variables are held constant. The beta coefficients indicated that how and to
what extent strategic marketing management dimensions such as product strategy, Promotion,
Price, Place and relationship marketing strategy contribute towards the performance of Brewery
Factory.

48 | P a g e
Table 4. 13 Model Summary b
Std. Change Statistics
Error of
the
R Estimate Durbin
R Square F Sig. F
Mod Squar Adjusted R -
Change Change Change
el R e Square df1 df2 Watson

1 .644 .414 .391 .674 .414 17.546 5 124 .000 1.905

a

a. Predictors: (Constant), Product, Promotion, Price, Place and Relationship Marketing

b. Dependent Variable: Performance

The above Table analyses, strategic marketing management variables have higher contribution
towards performance of Brewery Factory by applying regression analysis. The adjusted R2 is
0.391, which indicates that, together, the five strategic marketing management dimensions explain
almost 39 percent of the variation in performance. Of the five marketing management strategy
dimensions, all have a significant contribution towards Brewery factory performance except price
orientation. The relative importance of variables in predicting Brewery factory can be determined
by comparing Beta value, these are:

o Place (β = .518) o Promotion

(β =0.497) o Relationship
marketing (β = 0.172) o Product (β
=0.159) o Price (β =0.084)
It indicates that all aspects of business performance place and promotion have the great effect on
business performance, followed by Relationship marketing and Product strategy. The t statistics
help to determine which variables in the regression model are good explanatory variables of the
dependent variables. It can be observed from the study, the regression model of all marketing
management strategy variables is significant except price.

As can be seen in Table above, Place has positive impact on business performance (β= 0.518,
t=7.209, p<.01). Findings related to Promotion reveals that it has a positive impact on business

49 | P a g e
performance (β=0.497, t=5.957, p<.01). Relationship marketing shows positive impact on business
performance (β=0.172, t=2.253, p<.05). Product strategy shows positive impact on business
performance (β=0.159, t=2.248, p<.05).

Durbin-Watson: The Durbin–Watson statistic expresses that whether the assumption of

independent errors is acceptable or not. As the conservative rule suggested that, values less than 1
or greater than 3 should definitely increase fear (Field, 2005). So that the desired result is when the
value is closer to 2, and for this data, the value is 1.905, which is so close to 2 that the assumption
has almost certainly been met.

Table 4. 14 ANOVA
Sum of Mean
Squares Square
Model Df F Sig.

1 Regression 39.843 5 7.969 17.546 .000b

124
Residual 56.315 .454
129

Total 96.158

a. Dependent Variable: Performance

b. Predictors: (Constant), Product, Price, Promotion Relationship, Place,

The Table identified that the value of F-stat is 17.546 and is significant as the level of significance
is less than 1% (p< 0.01). This indicates that the overall model was reasonable fit and there was a
statistically significant association between marketing management strategy dimension and
business performance. It can be concluded that marketing management strategy have significant
effect on business performance of Brewery Factory. The coefficient of determination adjusted R2
value shows that these variables put together explain the variations of Y to the extent of 39 per
cent. It can be observed from the study, all marketing management strategy dimension have the
significantly contributing factors in business performance with the Brewery factory.

50 | P a g e
Table 4. 15 Summaries of tested Hypotheses
Hypothesis Results
Not Rejected
Reject
ed
Ha1 “: Pricng strategy orientation has significant effect on Business
performance”.

Ha2 Promotion strategy has significant effect on Business

performance

Ha3 Product strategy has significant effect on Business

performance

Ha4 Relationship marketing strategy has significant effect on

Business performance

Ha5 Place strategy has significant effect on Business performance

51 | P a g e
 CHAPTER FIVE

SUMMERY, CONCLUSION AND RECOMMENDATION OF RESEARCH FINDING

5.1.1. FINDING RELATED TO RESEARCH OBJECTIVE ONE

The findings of factor analysis revealed that the main dimensions of marketing management
strategy in the Brewery Factor were Promotion, Place, Price, Relationship Marketing and product
strategy. When factor analysis is used to analyses the data, 23 variables were reduced to 5 factors.
These five factors were named as Promotion, Place, Price, and Relationship marketing and product
strategy. The Eigen values and total variance explained were obtained from this. When the data
reduced to five factors they were explained a total variance of 67.165%.
To test the internal consistency of the factors, cronbach’s coefficient alpha reliabilities were
calculated and it is proved that the factors are consistent internally which proves that the items
within the factors are consistent internally.

5.1.2. FINDING RELATED TO RESEARCH OBJECTIVE THREE

➢ Marketing management strategy variables and business performance of Brewery Factory reveal
the fact that Promotion (.345) and place (.381) are the two variables which are highly
significant and positively correlated. A considerable amount of significance is also observed
from price orientation of marketing management strategy factors. Further, most of these
explanatory variables are significantly and positively correlated with the dependent variable
business performance. In conclusion, relationship between explanatory variables is significant
and positive except product and relationship marketing. In addition, the manager and owner
performance are related to marketing management strategy

5.1.3. FINDING RELATED TO RESEARCH OBJECTIVE FOUR

➢ Multiple regression analysis indicated that marketing management strategy is an important

antecedent of business performance. The results revealed positive and significant relationship
between the combination of marketing management dimensions and brewery factory performance.

52 | P a g e
➢ It indicates that all aspects of performance place and promotion have the great contribution
towards company performance, followed by relationship marketing and product strategy. In
addition, about 39% of variance in company performance can be explained by these dimensions.
➢ The most important contributor of overall business performance in this study was
Place/distribution dimension. According to the results, a one-unit increase in place would result
with 51 per cent increase in the Brewery factory performance, other variables being supposed
constant.
➢ The study conducted on the analysis of marketing strategy and its contribution with the
reference to St. Georges Brewery Share Factory. The study found that marketing management
strategies (Product, Price, Promotion, Price and Relationship marketing) were significantly
independent and joint predictors of company’s Business performance. The study however,
discovered that price strategy has no positive significant effect on business performance. Except
the result of price strategy which has contrary opinion to the previous researches.

5.2. Conclusions

Marketing is considered as a key element for any successful business, irrespective of its size, sector,
the nature of its work and even its aims and objectives. The ultimate goal of any modern business
is to be successful and satisfy their customer, profitably. According to Akroush, 2003 the success
or failure of business depends on its marketing strategies.

When it comes to marketing strategies, most people spontaneously think about the 4P‟s (Product,
Price, Place, and Promotion). Relationship marketing, however, are an important element of
marketing strategy. These are the basis for determining any particular marketing mix and the
corresponding business performance of any firm. In line with this, a number of empirical
researchers identified the profound relationship among the company efforts paid to marketing
strategy and the overall business performance.

In line with this, the researcher commenced the appropriate scientific study with the objective to
analysis marketing management strategy and its contribution in brewery factory. Based on this
study, the following conclusions are drawn out of the research findings:

53 | P a g e
The study found that the independent variables have the significant effect on the Brewery Factory
performance but, the price is not. Each one has its unique contribution and effect to the
performance of the Brewery Factory businesses. Its performance is proportionately depends on the
marketing strategy applied. Therefore, from this result one can conclude that, when highquality
product is produced by business enterprise, appropriately promoted and distributed to the target
customer, efficiently creating long term relationship, it will lead to higher business performance;
in term of profitability, increase sales, customer satisfaction, and brand awareness.

Correlation analysis was conducted to analyses the relationships between variables; the correlation
matrix revealed that most coefficient of correlation of independent variables was positively
correlated with the dependent variable. Furthermore multiple regression analysis was also
conducted to verify if the independent variables have the effect on performance….

54 | P a g e
 5.3. Recommendations

It is recommended that, businesses should embark on building a stronger marketing strategy since it
has been established that it contributes significantly to business performance. Brewery Factory in order
to meet or possibly exceed their planned performance can in general put customers first in so as to
ensure greater knowledge about them to be able to meet their needs.
Based on the research findings and the conclusions drawn in the previous sections the researcher
forwards the following recommendations.

 The Factory should give consideration to product strategy since customers do really look
at product attributes such as quality, features, design, and style. Therefore, factory should
produce the quality product in order to get competitive advantage over the competitors.
 Factory should develop appropriate promotion and distribution strategy so that it can
improve its communication with its customers and promptly make its product accessible
and convenient to its potential and actual customers.
 The Factory should building brand loyalty through coordinating various promotional tools
i.e. event sponsorship, corporate social responsibility and advertisement.
 The Factory should not underestimate the power of relationship marketing as it has the
ability to enlarge a firm’s sales, profitability, customer satisfaction, and brand awareness.
Therefore, company should value and respect customers‟ opinions, practice the art of
giving gifts to loyal customers and take customers feedback very seriously.
 Managers at different strategic decision making level should pay greater attention to the
competition in the market since it has proven that it can significantly affect the performance
of businesses. The competition in the market can be a fertile ground to get closer to
customers in order to gain competitive advantage that cannot be imitated.
 All in all marketing management strategy analysis has the dignity to help the company
implement the right marketing strategies to satisfy and penetrate the company’s customer
groups, which is phrased as target markets. Therefore, the company should constantly alter
the sub elements of each marketing strategy to successfully compete with its competitors
and offer the greatest value to its customers.

55 | P a g e
 Bibliography

1. Anderson and Vince, (2000). Principles of Marketing, 1st Ed, Oxford University press
NewYork.
2. Andrew W. (2010). Strategic Marketing. Ventus publishing. ApS.
3. Control, New Delhi-110001, Prentice Hall of India Private Limited.
4. Croft, M.J., (1994).Marketing for managers-Market segmentation: Cengage learning.
5. Davidson, S. (2001). Seizing your competitive advantage: Journal of management, Vol.
10, No.8: Community banker, PP 32.
6. Ferell, O.C.,Michael, D., & Hartline. (2011). Marketing strategy (5thed.): USA, South-
Western Cengage learning.
7. Ferell, O.C.,Michael, D., & Hartline. (2011). Marketing strategy (5thed.): USA, South-
8. Hans, T.,Screuder Richard Ernst, and Hugo Ramirez Maldonaldo. (2004). Statistical
techniques for sampling and monitoring natural resources:Gen.Tech.Rep.Fortcollins, CO.
9. Hutt, M.D, &Speh, T.W. (2001).Business Marketing Management: strategic view of
industrialand organizational markets. (7th ed.): Harcourt College Publishers.
10. Kotler , P., & Armstrong, G. (2009). Marketing: An Introduction . London: Pearson
Prentice Hall.
11. Kotler Philip (1999). Marketing Management: Analysis, Planning, Implementation, and
12. Kotler, P. (2007). Marketing Management 12th edition. Prentice hall Inc.
13. Kotler, P. (2007).Marketing Management (12th ed.): Prentice hall Inc.
14. Kotler, P. (2007).Marketing Management (12th ed.): Prentice hall Inc.
15. Kotler, P. and Armstrong. (2012). Principle of Marketing, 14th edition New Jersey:
16. Kotler, P., Keller, L. (2012).Marketing Management (14thed.): New Jersey, Prentice
publishing: one lake street, upper saddle river.
17. Kotler, P., Keller, L. (2012).Marketing Management(14thed.): New Jersey, Prentice
publishing: one lake street, upper saddle river.
18. Koyade, O. (2014). Marketing Communications 1’st edition. Ventus publishing Aps.

A|Page
 19. Ludikova, J. (2008).Proposal of a marketing strategy: unpublished, Thesis, Masrykova
University.

20. McDonald and Dunbar (2007). Marketing Plan: How to Prepare Them, How to Use Them
6th edition , Oxford printing press.
21. Mesfin L and Samuel D, (2018) ASSESSMENT OF MARKETING STRATEGY
IMPLEMENTATION IN ST. GEORGE BREWERY SHARE COMPANY (BGI) IN ETHIOPIA
International Journal in Commerce, IT and Social Sciences
22. Mongay J (2006).Strategic Marketing Concepts and Boundaries. Authonomus University
of Barcelona,SBS swiss Business school.
23. Nasit, A. (2011).An Empirical Study on marketing strategy of telecom sector in Gujarat
State: unpublished dissertation,Saurashtra University.
24. Neuman, W.L. (2006). Social research methods: Qualitative and Quantitative approaches
:( 6thed.): Pearson, Boston.
25. Rainville, P. 2012. SMEs set their sights on sustainability. Case studies of small and
medium-sized enterprises (SMEs) from the UK, US and Canada.
http://www.aicpa.org/interestareas/businessindustryandgovernment/resources/sustaina
bility/downloadabledocuments/sustainability_case_studies_final%20pdf.pdf Date of
access: 4 May 2013.
26. Shapiro, C., &Varian. (1999).Information rules: A strategic guide to the network
economy, Harvard business school press; Boston, ISBN 0-87584-863-X.
27. Shaw, E. (2011).Marketing to win: A guide to strategic planning, Florida, Boca Raton.
28. Slater, S.F., &Olson, E.M. (2001).Marketing’s contribution to the implementation of
business strategy: An empirical analysis, strategic management journal, 22, PP 1055- 1067.
29. Tashakkori, A., and Teddlie, C. (2003).Mixed methodology: combining qualitative and
Quantitative approaches, Thousand Oaks, CA: Sage publications.
30. Western Cengage learning.
31. Whalley, A. (2010). Strategic Marketing .Bookboon: Bookboon.com.
32. Zikmund, W.G. (2003). Business research methods (7thed.): South-western Thomson,
Ohio.

B|Page
 Appendix

MADDA WALABU UNIVERSITY College Of Business and Economics Department Of

Marketing Management Dear Respondents
I would like to extend my deep gratitude in advance for volunteering to devote your valuable time
to fill this questionnaire. The purpose of this questionnaire is to gather data from employees of St.
George Brewery Factory. The main objective of the study is To Analysis Marketing Strategy
and its contribution in the case of St. George Brewery Factory, for the partial fulfillment of
Masters of Marketing Management. In this regard I kindly request your assistance in responding
to the questions listed below. Any information you present will be kept utterly confidential and
will be used only for academic purpose. Your cooperation and prompt response will be highly
appreciated.
Contact Address: - _________________ e-mail:-_____________Tele. +251-
General Instruction
• Writing your name is not necessary
• Put “√” for your choice in the box provided Thank You in advance!

Part I: Personal Information

1. Gender: Male Female

2. Age: <20 years 21-30 years 31-40 years
41-above
3. Educational status: Less than secondary school Certificate Diploma
1st Degree 2nd Degree and Above
4. How long have you been employee of St. George Brewery Factory?
Less than 1years 1-2years 3-4years 4-6years 6-8years

Above 8years

Part II STP strategy

1. What are the bases of segmenting the market? (Multiple Responses are Possible)

1. Geographic Location

2. Demographic

C|Page
 3. Behavioral
4. Psychological or Lifestyle

If any other Please specify _______________________________________________________.

2. Who are the company’s major target groups? (Multiple Responses are Possible)

1. Individual Customers/Consumers
2. Hotels , Restaurants and Groceries
3. Other Intermediaries

If any other Please specify _______________________________________________________.

3. The company effectively uses marketing strategy to position it product line in the market.

1. Strongly agree
2. Agree
3. Undecided
4. Disagree
5. Strongly disagree

Part II: Marketing Concepts Related Questions

Please indicate how much you agree or disagree with each of the following statements by circling
the number that best represents your opinion.

1. Indicates strongly disagree (SDA), 4. indicates agree (A), and

2. Indicates disagree (DA), 5. Indicates strongly agree (SA).
3. indicates neutral (N),
No Statement 5 4 3 2 1
Promotion Strategy
(PRMO)
1 Our company applies
advertising as one of the
promotional strategy
2 Our company applies sales
promotion as one the
promotional strategy

3 Our company applies

D|Page
 personal selling as one the
promotional strategy
4 Our promotional strategy
influences the rate of
purchase positively
5 People know our products
based on our promotional
strategy
Place Strategy (PLC)
6 Our company uses brokers
and agents to distribute our
products
7 Our company has direct sales
force to sell our products
8 Our company uses online
distribution channel
9 Our company has service .
delivery properly
10 Our company uses
multidistribution channels to
deliver our product to
different customer groups
Product Strategy
(PROD)
1 The product or service
portfolio of our enterprise
is up to the customers‟
expectations.

2 We provide a wide range of

product/service.
3 Providing better quality
products/services helps us
to meet our customers’‟
needs.

4 We employ the most

advanced technology than
our competitors do.

E|Page
5 We introduce and develop
new products/services

based on customers‟
needs.
6 We build our brand
reputation through
providing a distinctive
service quality

Relationship Marketing
(RLS)
1 We have a strong team that
is tasked with obtaining and
addressing customer
concerns.

2 We have A good and

positive relationship with
customers to promotes
customers loyalty

3 Good customer relationship

provides increased value to
new and existing customers

4 Customer relationship
marketing attracts and
keeps the customers in the
organization.

5 Maintaining and enhancing

customer relationships is an
important aspect of our
business.

F|Page
6 We measure customer
satisfaction systematically
and frequently
Price
1 Prices of our products are
appropriate
2 Pricing based on what
customers willing to pay
3 Pricing based on the prices
in the market segment we
serve
4 The pricing decisions allow
for payment period
5 The pricing
decisions allow for
credit term.
6 The price decision is
flexible based on customer
purchasing power

Part IV; Business Performance

Business
Performance
1 Our net profit has
increase business

2 There has been revenue

growth in our
business

3 We have increase our

Market Share
4 Our customers have
better brand
awareness.
5 Number of Employees
increased.

G|Page
H|Page