The moderating influence of Bixa orellana value chain government policy on the relationship between promotion strategy and sales performance

Abstract

In health conscious countries mostly in Europe and America, Bixa, a natural coloring is in high demand from manufactures of butter, margarine and cheese. Bixa is also used as pigments and flavoring in confectionery flour and sugar, meat products, beverages and snacks. Bixa is grown in Kwale, Lamu and Kilifi Counties by small scale farmers and further processed for export by private companies. Bixa orellana crop was recently scheduled as a cash crop by the Kenyan government and its marketing has been left to small scale farmers. There is need for appropriate marketing strategies to enhance sales performance of Bixa crop. Since no studies have been conducted on the influence of promotion strategy on the sales performance of Bixa orellana, the study addressed the research gap. The main aim of this study was to assess the moderating Influence of Bixa orellana Value Chain Government Policy on the Relationship between Promotion Strategy and sales performance. The study is based on the following theories; Resource-Based Theory, Competency Theory, and Distribution Channel Theory. The study adopted descriptive and exploratory research design mixed method approaches. The target population of the study was 2,419 Bixa farmers registered by the Ministry of Agriculture in Kwale County. A sample size of 106 farmers was drawn using simple random sampling technique. The study used structured questionnaire to collect the required data from the respondents. The study used descriptive statistics such as means, standard deviation and percentages and inferential statistics using Regression Analysis. The study established that promotion strategy influenced the sales performance of small scale Bixa orellana farmers in Kwale County, Kenya. The interaction of the moderating effect of Government policy on Bixa orellana value chain did not change the relationship between promotion strategy and sales performance of small scale Bixa orellana farmers. The findings from the study will be of importance to practice, marketing scholarship and Ministries of Industry, Trade and Cooperatives and Agriculture on Policy formulation for local and international marketing of Bixa orellana products. The study recommends that the Government of Kenya puts in place a policy framework now that Bixa orellana is a scheduled crop, to regulate and promote its production, processing and marketing. Small scale Bixa orellana farmers and marketers have knowledge from this study which is useful for the design and implementation of effective marketing strategies to increase sales performance.