Abstract: Soft drink companies are employing different market penetration strategies to increase organizational growth. The aim of the research study was to study the strategies employed by the soft drink companies and their success in penetrating the Kenyan market. This research was guided by the following objectives: to find out the extent to which penetration pricing strategy influence organization growth, the extent to which market promotion influences organizational growth, the extent to which distribution channels influences organization growth and to examine the extent to which product improvement strategy influences organizational growth in the soft drink sector. Stratified random sampling technique was employed. A sample of 160 soft drink companies was randomly selected for the study. Data was collected and analyzed by both descriptive and inferential statistical tools. Correlation analysis was used to describe the strength and direction of the linear relationship between two variables. The results indicated that penetration strategies have a relationship with organizational growth. Penetration pricing strategy was negative and doesn’t have a strong impact on organizational growth. Promotional strategies on the other hand is key because it positively affects organizational growth, distribution channel do not directly determine the organizational growth because it had a negative relationship hence companies have to add on distribution channels and incorporate other strategies to gain organizational growth. The correlation result indicates a weak positive relationship between product improvement strategies and organizational growth. The researcher recommended that all the strategies are a prerequisite for organizational growth and they complement each other.
Keywords: Market penetration strategy, Organization growth, penetration pricing strategy, Promotion, Distribution channels and Product improvement.
Title: Market Penetration Strategies and Organizational Growth: A Case of Soft Drink Sector in Kenya
Author: NJOMO GIDEON WAINAINA, MARGARET OLOKO
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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