Influence of Product Development Strategy on Performance of Middle Level Chain Stores

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue XII, December 2019 | ISSN 2454–6186

Influence of Product Development Strategy on Performance of Middle Level Chain Stores

Carolyn Mwongeli Kyalo¹, Dr. Elishiba Murigi^2
1,2Department of Business Administration, School of Business, Kenyatta University, Kenya

Abstract: This study sought to determine the influence of product development strategy on performance of middle level chain stores. The research did adopt a descriptive research design. The population of the study comprised of three middle level retail stores. The retail stores selected for this study include Uchumi, Tuskys and Naivas supermarkets. A questionnaire was used to collect data. The population of study was chain stores in Nairobi City County that are operational. This consisted of 65 respondents who are the employees of the chain stores. A census was conduct in the study. The primary data was collected by use of self-administered semi-structured questionnaire. Data analysis was done by use of descriptive statistics such as frequencies, percentages, mean scores and standard deviation with the aid of SPSS and presented through tables, charts, graphs, frequencies and percentages. The study established that product development strategies employed by middle level retail chain stores in Nairobi City County positively and significantly influenced their performance. It was concluded that the retail chain stores were performing except Uchumi whose financial status is still poor. Further the study concluded that the firms engaged similar strategies and shared market segments. The study recommends that the middle level retail chain stores need to improve their branding, packing and perceived new product development through rebranding to enhance their sales performance. The study recommends that the firms need to regulate their pricing strategy to avoid plunging them to negative performance. The study recommends further that the firms need to enhance employment of the promotional mix to advertise their products and improve their sales.

Keywords: Product Development Strategy, Organizational Performance

I. INTRODUCTION

Development of applicable marketing strategies presents a suitable and meaningful ways for firms to be competitive in serving a particular market segment. In the modern business environment, market competitiveness defines how well organization can develop strategies and implement them, though competitiveness can also influence the type of strategy selected by the firm (Elizabeth & Hugh, 2006). According to Koerte and Bernard (2010), a strategy can be defined as the commitment of an organization to specific markets, products, competitive approached method of business operation, and customers.

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