Marketing strategies and financial performance of grocery shops in Uganda

Abstract

The study was entirely focussed on a major objective of establishing a relationship between marketing strategies and financial performance of grocery shops in Uganda. The case study area for the survey was Mpondwe Lhubiriha Town Council which is situated in Kasese district. Under marketing strategies, dimensions that were considered for examination were Advertising, Product differentiation and Packaging. On the other hand under financial performance indicators that were taken included; profitability, sales growth and liquidity. The study was guided by specific objectives that were aimed at establishing the different relationships that existed between these different elements under the two main variables. The other moderating variable that affected the main relationship constituted of elements such as; consumer tastes and government policy. All these variables were conceptualized into a model that showed how they interacted with each other. The study employed a self administered questionnaire as a tool for data collection. The responses generated from the field survey were analyzed and manipulated into charts, tables, and graphs with the aid of the Statistical Package for Social Scientists (SPSS) and Microsoft Excel. Descriptive statistics showed minimum and maximum values, mean values and standard devitions of the different dimensions of marketing strategies in relation to finacial performance and it is from these descriptive statistics that correlation coefficients were generated to determine the different relationships. Study findings revealed that there was a positive and significant relationship between Advertising and financial performance generating a correlation coefficient of 0.256. There was also a significant relationship between Product differentiation and financial performance represented by a coefficient of 0.227. The last relationship between Packaging and financial performance generated a significant but negative relationship with a coefficient of – 0.203. The study concluded that these findings were quite consistent with those of past researchers on a similar topic and hence considered the research survey a success. The study finally comes up with some key recommendations that may be helpful to relevant stake holders such as; training and development of staff, developing a clear business plan, keeping up-to-date accounting records, and engaging in extensive and aggressive marketing research.