UNIVERSITY OF NAIROBI UNIVERSITY OF BUSINESS STUDIES , BANDARI COMPUS KIBWANA. E. MATAKA REG NO: D61/70919/2008 MASTERS IN BUSINESS ADMINISTRATION JOB A.
RECOGNIZE A FIRM WITH KENYA AND ANALYSE ITS PRODUCT MIXTURE USING BOSTON CONSULTING GROUP MATRIX (BCG MATRIX) N. FOR THE SAME ORGANIZATION DISCUSS JUST HOW CHANGES IN THE PROMOTING ENVIRONMENTAL PUSHES IN THE LAST THREE YEARS HAS AFFECTED MARKETING ACTIONS. C. DISCOVER LAWS/ACTS IN KENYA INFLUENCING MARKETING. PRECISELY WHAT IS THE PURPOSE OF LAW/ACTS. A. Determine a firm with Kenya and analyse the product mixture using Boston Consulting Group Matrix (BCG Matrix)
For us to discuss the determined firm operating in Kenya and analyse its product combine using Boston Consulting Group Matrix (BCG Matrix) the important to discuss Boston Asking Group because concepts after that we apply and evaluate the company identified. Boston Asking Group Matrix which is also referred as BCG Matrix, Boston matrix, Boston Box, Boston Matrix or Boston Consulting Group evaluation is a data that has been made by Generic Henderson intended for the Boston Consulting Group in 1970 to help corporations with analyzing their particular business product or catalog.
Among its uses this model helps organizations to set aside resources and is used as analytical tool in branding marketing, item management, ideal management and portfolio analysis. For the purpose of our discussion we will examine the East African Breweries Ltd (EABL) which has a turnover of over 31 billion and has the greatest share of beer industry in the region. The group engages more than 1000 people throughout East Africa. We want to skew our discussion within the Kenyan perspective of the organization.
Generally, Boston Consulting Group matrix thinks two standards the native market share and marketing progress rate. Categorically it separates products in four areas namely: – * Superstars * Problem Marks 2. Cash Bovine * Pups Question Markings Under question marks goods we argue that Alvaro a non alcohol addiction malt beverage qualifies to be considered in this category. These products which are also referred since problem child have large growth rates but low relative market share. In the initial six months available in the market the company got spent more than 600, 000 to promote that.
Thus they may be known to be developing rapidly and therefore consumes wide range of cash. Alvaro has shown the actual to gain market share and become a star and eventually a cash cow if the market slows. However if the question mark does not succeed in learning to be a market head it will degenerate into a puppy when the marketplace growth declines. Question represents must be analysed carefully to look for the direction by which they are moving toward to. Stars In November 2005 EABL introduced Senator keg brand into the market.
The brand name has top rated since it is providing affordable and high variety alternatives intended for illicit brews. It goals the low salary earners. This brand qualifies to be a star. Senator Keg is most likely relatively new product in the development phase since they have excessive market stocks, however they might be generating enough growth earnings to cover their very own investment needs. By 08 the product acquired passed the mark of 3500. This products will end up cash deer of the old age but it at present unlikely to be enerating a high level of income due to the dangerous of expenditure required to expand the product. Usually the predominant strategy is usually to grow then simply to the next level the “cash cow exactly where most revenue are made. To do this company is using the ‘Tuko Mtaani’ em senator keg promotion because the main advertising campaign. Cash Cows Tusker is the main brand pertaining to EABL with over thirty percent of the Kenyan beer industry selling much more than 700, 000hectolitres per year. This brand was launched in 1923. Tusker beer has high market share in a demonstrate growing market.
This product commonly generate cash in excess of the quantity needed to keep up with the business. With this product the market life group of friends has moved to maturity and the growth is usually slow. They are really regarded as staid and uninteresting state. Tusker beer as being a cash cow, also benefit from low production costs, reaping the benefits of experience or learning curve, as well as product commitment. Pilsner beverage brand are often categorized in this category. Canines They are goods which have little if any prospects. Several books send them while pests. These types of units typically break even creating enough cash to maintain the business market share.
It may not yet be making a loss unless it truly is demanding disapproriate use of expenses. Hence its kind and just like the challenge child must be thoroughly analysed with a view of either enhancing it or even discontinued when it becomes a burden. Whitecap ale brand falls under its kind. It is among the oldest brands which is concentrating on high ranking professional persons. The overall aim of this rank is to support corporate experts decide which of their business units to fund and how much which units to sell.
The above discussed may be summarized in the table listed below: – StarsSenator Keg| Query marks/problem ChildAlvaro| Cash Deer * Tusker * Pilsner| DogsWhite Cap| Market Development Rate Low High Marketplace Growth Charge HighLow Family member Market Share W. FOR THE SAME COMPANY DISCUSS JUST HOW CHANGES IN THE ADVERTISING ENVIRONMENTAL PUSHES IN THE LAST 36 MONTHS HAS INFLUENCED MARKETING ACTIONS. The Promoting Environmental factors for Kenya Breweries incorporate the celebrities and makes that affect the company capacity to develop and keep successful relationship with its concentrate on customers.
In the last three years the company experienced modifications in our marketing environmental forces. These marketing environmental forces can be categories either as tiny environmental forces and macro environmental pushes. The changes in micro environmental forces will be discussed by looking at the two internal and external environmental forces. The changes range for the following areas: – 5. The company 5. The suppliers * Advertising intermediaries 2. Customer markets * Competition * Banal During the period under assessment the company encounter a marketing change (physically) of the top management.
Recently the best management experienced a shakeup after the CEO ” Mister. Gerald Mahinda, leaving the company to South Africa based company Brand residence. This calls for readjustment, inside rearrangement, which in turn affected the marketing programs, plans and actions. More adjustments are required since the person replacing Mister. Mahinda ” Mr. Seni Setu coming from Ghana was working with Coca cola it is expected that he will pump in the skills gathered through the rival organization. During the electioneering period year 2007/08 the nation witnessed substantial violence and destruction of properties.
The most affected area is the Rift Valley and central Region. These are the regions which can be known for developing barley which is the main raw material intended for beer digesting. It is in record that farms had been set ablaze and player displaced. This greatly affected and disrupted the supply style and similarly affected the expense of acquiring the organic material. In a large extent this kind of compelled the organization to use alternative options for raw materials. Since the traditional suppliers were no longer reliable, stock not available.
This greatly brought up the production cost and hence price shifting method was which is still getting administered. This fact have been captured by the EABLS2009 half year effects report which will had the theame of ” development in remarkable times. Within Marketing intermediaries such as resellers, physical syndication firms, marketing services organizations and businesses of financial intermediaries has greatly affected the marketing activities of East African Breweries and the country at large. The time under assessment witnessed the development of telebanking solutions.
The Mpesa and Move concepts intended for the safaricom and Zain mobile providers greatly influenced the promoting intermediaries. The truth is some resellers are now joining up with these two services providers. This has smoothen the marketing activities and reduced transaction period. Our conversation on advertising intermediaries is not finish without searching and studying the consequences of post election assault in particular. The period under review witnessed the physical redistribution of reseller, firms as well as the potential customers.
The resellers, firms and consumers migrated away from volatile areas to fairly neutral grounds. The organization areas forced to utilize the r and d department to analyse this new trend of distribution of resellers, physical distribution firms and relocated customers. For East Africa Breweries Restricted to create fulfilling customer romance it must partner with marketing intermediaries who type an important component of the company’s total value delivery system to customers. The resellers whom are at instances referred to as middlemen are the primary players intended for the company.
The corporation distribute their products through the wholesalers to the suppliers before achieving the final buyers. The bulk suppliers are considered because the distributors. Hence like explained previous all these had been affected by the post selection violence. Nevertheless still the corporation did much of the intermediaries marketing. For example five-hundred bars had been recruited and activated, 2500 waiters qualified and segments and CDS manuals provided. The East African Breweries Ltd position and power in relation to your competitors and its market share has a extremely important influence in company strategy.
The period beneath discussion noticed the traders of new players and hostile advancement of new competitions just like Keroche Sectors and Kuguru Food Products. This kind of led the company into aiming to reach out pertaining to the new products such as the fresh brand of customers. The introduction of non-alcoholic drink (Alvaro) which is a flanker product and meant to entice other customers. To be able to the get the market coming from illicit brews. The company introduced the Senator keg. The brand new products exposed the company towards the major advertising battle with the Coca soda company.
Beneath competition firms usually obtain their marketing plans from the competition rather than customer orientation. Relating to research about 70% of Kenyans mainly Christian foule do not are drinking alcoholic beverages but do socialize in bars and pubs. According to Ndirangu Maina, ” the Taking care of Director of Kenya Market Research firm (Consumer Insight Africa) “The low alcoholic organization was owned or operated by Coca cola, their amazing that the alcoholic business would think of that before coke. Like explained earlier over 600, 000 has been circulated for this product.
The fact that we get competitors available in the market implies that Kenya breweries is usually not a monopoly. In fact they are really at times challenged by the classic brewers that have cheap goods. This motivated the company to introduce new items such as Allsops and Senator keg into the market. Basing our next argument on the studies of Kotler searching at the seven types of publics. For the last three years each of the seven publics were impacted by a number of changes. The period seen the formation of East African Community, it has led to the company advancing in to all east African Countries including Rwanda and Burundi.
This significantly increased how big is publics for example citizens actions publics incorporate consumer corporation, local banal, general banal and the internal publics had been increasing. This kind of greatly improved the marketing strategies, plans and timings. Each of our second part of discussion is founded on the macro environmental forces which are elements over which the business has least control over the last three years. These kinds of factors possess greatly improved hence impacting on the promoting activities. Changes in social social environment can be from two dimensions ” social and cultural. Kibera F. And. and Waruingi B.
C advance an argument of the idea of “oneness among Africans. This kind of belief further more influences circulation in that various African supplier find it underhanded to grow profit basic at the expenditure of their own. It has further been argued that consumers opt for imported merchandise because that they view these people as outstanding. Also associated with culture are norms and believes one example is EABL will not concentrate on North and far eastern province as a result of traditional rules and made use of and morals on alcoholic beverages. However for the goal of our conversation let us take a look at social component associated with market patterns.
The perpetual move of the metropolitan centers plus the push of rural centre’s have cause concentrating the citizenry on cities. This tendency has now converted to pull these urban areas which have more cosmopolitan status which has been as a result of content election physical violence. There many people lost all their lives. This clearly shows that clenographic habits keeps on changing with all the interaction of individuals and the other element of cultural borrowing and sharing. Usually the urban population is characterized by the massive slums for the low profits people.
The corporation resorted to introducing Senator keg advertisments of the Tuko Mitaani and so s for capturing this market. The fact that ethnicities are for people and people form the markets hence any changes in them considerably affects the marketing framework and strategies. There is bad publicity or rather attitude in the society towards bar family and friends. Recently the company as a promoting venture resolved to countrywide campaign of training the bar attendants and to a huge extent sending the communication to the world that there is nothing at all wrong with those who handle alcohol an overall total of more than 2500 servers have been skilled.
Further these one found sellers of their products by simply training all of them they tremendously improve their picture and product sales. The world happens to be experiencing monetary crunch. Inflation is increasing and it includes passed 30. 30%. This implies the cost of development is elevating, also people are now aware about the prices and priority is put on principal products. Consequently EABL is witnessing a shift of shoppers to more affordable brands. Right here the Tuko Mitaani campaign came into play. Unemployment or concealed employment is definitely on climb. This influences the customers tendencies because of a shortage of source of income.
Further more for those who are utilized due to the world economic crunch and pumpiing, the throw-away income is principally spent on principal goods. Therefore the percentage which can be normally staying left intended for luxuries has been reduced and further consumer switch to more affordable products and local brews. The economic meltdown has also affected credit availability. Here various distributors always carry narrow assortment of products. Therefore the financial systems of large size distributions will be largely influenced. Also afflicted is EABL which has to obtain supplies on credit.
The corporation came up with Jisimamie na Kshs. 50 , 000, 000 credit progression strategy aimed towards SME’s and giving them 40, 000 to get a viable strategy. Since under such conditions consumers get what is seriously necessary and the EABL has gone out for price saving undertakings. This considerably affect advertising exercise which can be consume cash the marketing spending yet increased simply by 5% last season reports, EABL has to be cautious therefore with pricing guidelines, marketing and circulation activities. EABL in 2008 alone 2 . 165 , 000, 000 was invested in marketing by itself.
Coming up with Bambua Bambika , 000, 000 promotion intended to entice customers to buy with the hope of getting out of monetary crunch. The speed of modify and the effects of technology has a key impact on the EABL capacity to undertake the marketing activities. Technological environment is based on scientific knowledge, exploration, inventions and innovations. The period under review saw the creation of major solutions. To mention some introduction of new technology intended for canned ale, telebanking and widespread utilization of internet and world wide web.
The top achievement of the company may be the coming up with a high yielding barley species. The change in technological forces provides greatly influenced marketing activities of EABL. Further the organization has made a fortune in internet to make a web site which can be interactive and calls for scanning of information panoramic. The refined beer is usually suitably parked for takeaways. The ecological/physical environment makes are phone calls using of physical environmental friendly substances. The changes in climatic conditions for the last three years is definitely associated with climatic change.
We are witnessing harsh weather conditions. The extremely hot conditions possess forced EABL to start the programme of supplying refrigerators to larger areas so as to cool many and which makes them more relaxing. Further tough climatic conditions possess affected production of barley hence raise cost. Additional the company provides launched saving money Goals 2010 innitiative with its six key elements such as caring for environment, observance of environmental standards, recycling, waste reduction and review matters. To be able to take care of pollution the company is sticking to recyclable non wasteful parking materials.
All these environmental issue possess led to the expansion importance of green issues in marketing. Linked to the physical environment causes is physical forces. Inhabitants distribution and size shows an absolute potential consuming general public. The bulk of this kind of discussion continues to be explained whilst presenting disputes for demographic pattern as well as its changes. Online connectivity and basic infrastructure are part of physical forces. Areas like Bundalangi and general Western area have experienced break down of facilities such as streets, bridges due to harsh climatic condition.
This greatly impact the distribution of products and boosts the cost of development and circulation. Increasingly, political and legal systems may have significant effects in marketing policies and approaches. Both the government and client have made the work of marketing more advanced. The period beneath review features witnessed the raise of popularly known sin taxation by over 70%. This affected the price of production. Further more the government has introduced NACADA which can be all out to fight liquor and drugs usage. This indiscriminate advocacy against alcohol features affected promoting activities of EABL.
The highlighted legislations and anti alcohol lobbyist strict advertising and marketing laws shaped the company’s marketing process. This lead to the next strategies. We ID Marketing campaign, Don’t’ drink and travel campaigns The legal construction is more likely toward regulation of activities generally speaking terms. The idea of free market economy features greatly afflicted the promoting of KBL products seeing that foreign products fill the market. The period becoming discussed provides witnessed the ever growing area of issue alcoholic related advertisement.
If perhaps this legislation is approved then it will mean total restructuring of market process to get KBL despite the fact that this legislation is yet to be passed yet it really is causing waves in kind of lobbying and discussion facilities which the organization is forced to take up the duties and related cost. Finally the politics skirmishes relevant to the post election violence has tremendously affected the marketing activities of EABL. A lot continues to be discussed regarding the effects content election violence in the earlier discussions. c. DISCOVER LAWS/ACTS IN KENYA IMPACTING MARKETING. WHAT IS THE PURPOSE OF LAW/ACTS.
It must be known that marketing does not occur in a vacuum. Among the factors which in turn affect advertising is legal related factors. In Kenya there are a number of laws which in turn generally impact market operations in the country. The laws control marketing functions right from the functions, companies even charges. For the purpose of this kind of discussion i want to look at these people one following the other. The Supplies Preventition Management Take action Cap 17 of 2007 aims at establishing, inventory, improve and submit the standard of the supplies specialist. The Act guides upon training and relevant assessments boards.
The Acts encourage the managers of this Take action register and licence almost all practitioner underneath this cadre. The Sale of products Act Cover 31 is experienced the condition pertaining to sales of goods in Kenya. The Take action specifies the formulation of your contract and the performance of any contract. The rights of unpaid vendors against the products and actions for the breach in the contract one areas which has been covered inside the Act. Narcotic Drugs an Psychotropic substances Act Cap 4 of 1994 can be an Work of legislative house with respect to the charge of the possession of trafficking in narcotic medications and psychotropic substance an cultivation of certain crops.
To provide for forfeiture of property based on or found in illicit or perhaps narcotic prescription drugs and psychotropic substance and then for committed functions. The Tobacco Control Act Cap 5 of 3 years ago, its goal and goal is to provide a legal platform for the control of the production, manufacture, sale, labeling, advertising, promotion, support and make use of tobacco items including experience of tobacco smoking in order to safeguard the user, customer, person under the age of 18 and second affected residents.
The Exchange Control Action Cap 113 (Repealed) can be an Take action of parliament to consult panes and impose tasks and use in contact to precious metal, currency obligations, security, debts and the import, export, copy and arrangement of homes and for uses committal thereof. The Work further features rules which are regarded as the Exchange Control fees. The fireplace Arms Work Cap 114 is an act of parliament for regulatory, licencing and for the controlling, the manufacturer, importers and exporters, sales, repairs, storage, possession and use of weapons, ammunition, arigrams and damage devices and commented functions.
Which its subsidiary inflation the Work has rules associated with weapons. Equally charges chargeable every fireman is definitely specified. An additional Act of Parliament billed with the responsibility to make conditions for regulating the sale and provide of liquor and for issues incidental thereto and committed therewith may be the Liquor Licencing Act Cover 121. Nevertheless this act does not connect with certain areas these areas have been stipulated in the Work varying intended for medical reasons to sale for liquor on side of vessels.
Related to this kind of Act is definitely the Pharmacy and Poisons Act Cap 244 which is also an Act of parliament to create better supply for power over the profession of drug-store and the trade in drugs and toxin. Copy Proper Act Cap 130 (1966) is a great Act of Parliament to make provision intended for copyright in literacy, musical technology and imaginative works, music visual performs, sound saving and broadcasts. Under it is subsidiary regulations has regulations which are among at explaining caption 12-15.
Agricultural create marketing Action Cap 320 is a great act of parliament to manage and regulate the advertising of Agricultural produce, enable marketing brands to provide to get the forces and dreams of the boards and for concerns committed therewith. This stipulates the establishment of marketing boards and beneath its assorted part this stipulates the regulations, offences and other related matters. Connected with this Action we have National Cereal and Produce Table, Pyrethrum Action 340, Tea Act Cover 343, Silk cotton Act limit 335, Coconut Industry Action Cap 332 and Caffeine Act Cap 9 amongst others are all farming marketing related Acts.
The National Cereals and Produce Board Work which is a great Act of parliament that regulates and controls the marketing and digesting of maize, wheat and scheduled gardening produce to create NCCPB and control goal therewith. Other listed Functions listed in this kind of paragraph in order to provide individual avenue to get reorganization, regulation of the respective industry as well as the control of growing process and most importantly marketing. That particular product for both medical and agronomic research and any other worried purposes.
The Pest Control Product Work Cap 346 (1983) is yet another agricultural related Act which regulated the importation manufacture, distributors as well as the use of goods for handles of pests, and of the organic capabilities for control purposes. The Restriction Board Monopolies and Price Control Act Hat 504 is usually and action of parliament which is intended for encouraging competition in the economy by simply prohibiting limited trade techniques continuing monopolies concentration of economic forces and prices.
Nevertheless even though this Act supports competition the other Investment Safeguard Act Limit 518 offers protection to certain authorized foreign investments and things incidental thereof. In conclusion for that reason legal elements generally inspired the promoting practices in Kenya. In reality the laws and regulations discussed are merely a few. You will find others and fact all of the laws of Kenya offers one way or another affected marketing both directly or indirectly.