The Effect of Marketing Mix Strategy on Sales Performance of Brewery Factories in Ethiopia: Does Competitive Intensity Moderates the Relationship

Abstract

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The aim of the study was to examine the effect of marketing mix strategy on sales performance and explain how competitive intensity moderates the relationship in the Ethiopian beer manufacturing industry. We measured marketing mix strategy in terms of the beer companies’ product, pricing, distribution, and promotion strategies. The study followed a quantitative survey approach. A total of 232 questionnaires were distributed to randomly selected employees in two beer companies (i.e. Dashen and Habesha Beer) and 220 usable questionnaires were used for analysis. The correlation and regression analysis revealed that marketing mix strategies (i.e. product, pricing, distribution, and promotion strategies) have a positive and significant effect on the sales performance of companies in the Ethiopian beer industry. In addition, we found out that competitive intensity significantly moderates the effect of marketing mix strategies on sales performance. This implies that designing and implementing sound marketing strategies can provide beer manufacturing businesses with a competitive advantage in an environment where the competitive intensity is high. Based on this, we suggested that beer companies should have sound marketing strategies in order to achieve success in the Ethiopian beer industry where the competition is becoming intense.

Keywords: Marketing, Strategy, Marketing Strategy, Competition, competitive Intensity, Sales Performance, Beer Industry, Ethiopia

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