4.2. horticulture. 4.4. permanent crops. 5.4. bakery …

(J.BBA) Journal of Brand Building In Africa (J.BBA - Food and beverage)

Volume 2, Issue 2 (Dec. - Jan. 2020), PP 1-12 https://thecifarsgroup.co.ke/jbba/

TABLE OF CONTENT

1. INTRODUCTION

2. WHAT IS FOOD AND BEVERAGE?

2.1 DIFFERENCE BETWEEN FOOD AND BEVERAGE.

3. THE SIZE OF THE FOOD AND BEVERAGE INDUSTRY IN KENYA AND THE COVID - 19 IMPACT.

4. FOOD AND BEVERAGE SUB SECTORS AND THE EVOLVING NEEDS OF THE TARGET MARKET IN KENYA.

4. SUB SECTOR 1; AGRICULTURAL PRODUCE. 4.1. LIVESTOCK AND PRODUCTS.

NOTABLE PLAYERS IN KENYA.

4.2. HORTICULTURE.

NOTABLE PLAYERS.

4.3. CEREALS.

NOTABLE PLAYERS.

4.4. PERMANENT CROPS.

NOTABLE PLAYERS.

5. SUB SECTOR 2; FOOD AND BEVERAGE MANUFACTURE.

5.1. MEAT AND MEAT PRODUCTS

NOTABLE PLAYERS.

5.2. ANIMALS AND VEGETABLE FATS AND OILS.

NOTABLE PLAYERS.

5.3. DAIRY PRODUCTS.

NOTABLE PLAYERS.

5.4. BAKERY PRODUCTS.

https://thecifarsgroup.co.ke/jbba/ 1

“As more and more consumers become more knowledgeable, they demand to be presented with not just alternatives, but the best healthy most affordable alternatives. This trend is bound to continue in almost every sub sector of food and beverage production/manufacture. Moving forward, it will be mandatory for F&B producers/manufacturers to present the consumer with healthier and more affordable alternatives.... “

‘ MARKETING FOOD AND BEVERAGE IN KENYA; THE COVID-19 ERA AND BEYOND.’ by Kenyanito Baraka.

email: [email protected]

https://thecifarsgroup.co.ke/jbba/


mailto:[email protected]



NOTABLE PLAYERS.

5.5 COCOA, CHOCOLATE AND SUGAR CONFECTIONERY.

NOTABLE PLAYERS.

5.6. BEVERAGES.

NOTABLE PLAYERS.

5. MARKETING STRATEGIES EMPLOYED BY THE NOTABLE PLAYERS IN KENYA.

WHERE THE OPPORTUNITIES LIE IN FOOD AND BEVERAGE IN KENYA - BASED ON A SITUATIONAL ANALYSIS

OVERALL STRATEGY

PUSH STRATEGY

PULL STRATEGY

PROFILE STRATEGY

THE MARKETING MIX

PRODUCT

PRICE

PLACE

PROMOTION

PHYSICAL EVIDENCE

PEOPLE

PROCESS

CONCLUSION






1. INTRODUCTION

Food and beverage is a very key sector of Kenya’s economy. Food security is also fundamental to human existence. Agriculture contributed 34.15% to Kenya’s GDP in 2019. According to Keninvest , “at 10 per cent, manufacturing is the second-largest contributor to GDP, with the processing of agricultural products a key factor in growth.” According to the office of the president, Kenya is on a mission to produce 406,486metric tonnes of rice, 1.3 million metric tonnes of potatoes and 67 million bags of maize (90Kg) by 2022.

Fig. 1 Food availability projections in Kenya. Source: Office of the president. https://www.president.go.ke/food-security-and-nutrition/

2. WHAT IS FOOD AND BEVERAGE?

According to Global edge, “the food and beverages industry is all companies involved in processing raw food materials, packaging, and distributing them. This includes fresh, prepared foods as well as packaged foods, and alcoholic and nonalcoholic beverages. Any product meant for human consumption, aside from pharmaceuticals, passes through this industry.”

2.1 DIFFERENCE BETWEEN FOOD AND BEVERAGE.

Food is (uncountable) any substance that can be consumed by living organisms, especially by eating,

in order to sustain life while a drink (or beverage) is a liquid intended for human consumption .

3. THE SIZE OF THE FOOD AND BEVERAGE INDUSTRY IN KENYA AND THE COVID - 19 IMPACT.

According to the Kenyan embassy netherlands, “Kenya's food and beverage industry is made up of more than 1,200 businesses. This ranges from small enterprises to large multinational companies, such as Nestle, Cadbury and Coca Cola.”



http://www.invest.go.ke/kenyas-economy/

https://www.president.go.ke/food-security-and-nutrition/

https://globaledge.msu.edu/industries/food-and-beverage/memo

http://www.kenyaembassy.nl/index.php/shortcode-2/food-and-beverages#:~:text=Kenya's%20food%20and%20beverage%20industry,Nestle%2C%20Cadbury%20and%20Coca%20Cola.&text=Nile%20perch%20accounts%20for%2090,value%20of%20Kenya's%20fish%20exports.




Fig. 2. Gross domestic product by activity 2019. Source: KNBS Economic Survey 2020. The agricultural sector as of 2019 contributed ksh. 1,050,758,000,000 to the gdp. This is a contribution of over 33.0%. As indicated in the table below.






Fig. 3. Percentage gross domestic product by activity 2019. Source: KNBS Economic Survey 2020. It is important to note as well that food and beverage production accounted for over 30% of the gdp growth in the manufacturing sector.






Fig. 4. Percentage growth by activity 2019. Source: KNBS Economic Survey 2020






Fig. 5. Wage employment by industry and sex, 2018 and 2019. Source: KNBS Economic Survey 2020






Fig. 6. Private sector wage payments by industry and sex, 2018 and 2019. Source: KNBS Economic Survey 2020






Fig. 7. Public sector wage employment by industry and sex, 2018 and 2019. Source: KNBS Economic Survey 2020






4. FOOD AND BEVERAGE SUB SECTORS AND THE EVOLVING NEEDS OF THE TARGET MARKET IN KENYA.

Fig. 8. Perfomance by agricultural sub sectors. Source: KNBS Economic Survey 2020.






Fig. 9. Percentage Change in Quantum Indices of Manufacturing Production, 2015-2019 Source: KNBS Economic Survey 2020. Due to increasing population, rising disposable incomes and product innovation, the food and beverage sector is set to grow dramatically between 2020 - 2026. Kenya has also seen a growth in the number of fast food restaurants and food delivery apps perhaps to meet the growing demand of today’s population. The main sub sectors that this article will focus on are: Sub sector 1; Agricultural produce.

a. Livestock and products. b. Horticulture. c. Cereals. d. Permanent crops.

Sub sector 2; Food and beverage manufacture. a. Meat and meat products. b. Animals and vegetable fats and oils. c. Dairy products. d. Grain mill products. e. Bakery products. f. Cocoa, chocolate and sugar confectionery. g. Beverages.






4. SUB SECTOR 1; AGRICULTURAL PRODUCE.

4.1. LIVESTOCK AND PRODUCTS.

According to Susan Macmillan, 2019, ILRI, projections suggest that between 2015 and 2050, not only the cattle and chicken population will increase by 94 and 375 percent respectively but there will also be major productivity gains. It is expected that by 2050, the livestock sector will supply over 150% more to the market (an additional 7.8 million tonnes of milk, beef and chicken meat to the population).

Fig 10. Livestock contribution to the GDP in millions between 2016 - 2019 Source: Primary. As much as there is growing demand for these products, it is important for investors and players in this market to realize that there will be even much more need for alternatives.



https://www.ilri.org/news/kenyan-livestock-sector-grow-%E2%80%98exponentially%E2%80%99%E2%80%94kenya-national-bureau-statistics




Fig 11. Rabbit meat in Kenya. Source: https://kenyaknowledge.blogspot.com/2017/08/rabbit-meat-beef-alternative-for-people.html The International Livestock Research Institute (ILRI), in an article in 2010, encouraged Kenyans to rear small ruminants and passed the message across that there is a growing demand for small ruminant meat and products. Rabbit Breeders Association of Kenya (Rabak), in an interview with Eunice Kilonzo of Nation.Africa, said that they slaughter over 500 rabbits every Wednesday but that it does not meet the demand. He encouraged more farmers to rear the animals and sell them to them. Unfortunately as is the case in Kenya, a good number of businesses are started with the soul aim of “where the money is now”. This was the case some time back in Kenya where there was “good money” in the quail business. Many farmers got into the business and eventually the market was saturated. This caused the value of an egg to drop from ksh. 100 to ksh. 10. It is important therefore for Kenyans to study, research and understand an industry before they try to get their hands on “the good money.” The market of rabbits is in Kenya as well as abroad where countries like Canada import rabbit meat from Kenya. It is also important for businesses to study and predict future trends within an industry and try to adapt to the core consumer needs. Nestle, the giant food manufacturer among other players is one of the market leaders who has got it right in adapting to consumer needs. Nestle is rushing to seize the opportunity in the growing demand for dairy milk alternatives.



https://kenyaknowledge.blogspot.com/2017/08/rabbit-meat-beef-alternative-for-people.html

https://www.ilri.org/publications/consumer-demand-sheep-and-goat-meat-kenya

https://nation.africa/kenya/business/seeds-of-gold/the-four-key-markets-for-your-rabbits-1021256

https://www.nestle.com/randd/news/allnews/expanding-portfolio-vegan-plant-based-lactose-free-dairy-alternatives




Fig 12. Nesfit plant based milk. Source: https://www.nestle.com/randd/news/allnews/expanding-portfolio-vegan-plant-based-lactose-free-dairy-alternatives According to Nestle, “the company currently offers a variety of products made from rice, oat, soy, coconut and almonds. Examples include non-dairy Häagen Dazs ice cream, Natural bliss coffee creamers in the US, Nesfit rice- and oat-based drinks in Brazil, a new vegan-friendly Milo in Australia and plant-based Nescafé cappuccinos and lattes in Europe and Oceania. Nestlé will also launch Starbucks non-dairy creamers in the US in August, a vegan Carnation condensed milk alternative in the UK in September, as well as a range of non-dairy cheese to complement its existing plant-based burgers.”





https://www.nestleusa.com/media/pressreleases/coffee-mate-natural-bliss-announces-almond-coconut-milk-creamers

https://www.nestleusa.com/media/pressreleases/coffee-mate-natural-bliss-announces-almond-coconut-milk-creamers

https://www.nestle.com/media/news/nestle-launch-plant-based-milo-powder-australia

https://www.nestle.com/media/news/nestle-launch-plant-based-milo-powder-australia

https://www.nestle.com/randd/news/allnews/nestle-launches-plant-based-coffee-lattes



https://www.nestle.com/media/news/starbucks-non-dairy-coffee-creamers-launch-us

https://www.nestle.com/media/news/starbucks-non-dairy-coffee-creamers-launch-us

https://www.nestle.co.uk/en-gb/media/pressreleases/allpressreleases/carnation-goes-vegan



https://www.nestle.com/media/news/pb-triple-play-plant-based-bacon-cheeseburger




Fig 13. Clean meat. Source: https://www.thepoultrysite.com/articles/six-innovative-companies-shaping-the-poultry-industry On the other hand, there have been notable innovations in poultry. According to the poultry site, Memphis Meats, a California company that has created the first lab-grown chicken and duck in the world, has been one of the startups that has benefitted from big-time investments from billionaires like Bill Gates and Richard Branson and the agricultural giant Cargill.” It is important to note that inasmuch as demand is rising in the livestock sector, companies that innovate will be far ahead of companies that remain rigid in their traditional approach to offering basic no value add livestock products like milk and chicken.



https://www.thepoultrysite.com/articles/six-innovative-companies-shaping-the-poultry-industry




Fig 14. Ornamental birds. Source: https://businesstoday.co.ke/farmers-cash-rising-demand-ornamental-birds/ According to Alex Wachira, farm Kenya, 2019, ornamental birds accounted for up to two percent of the poultry population in the country as of 2019. Most farmers in Kenya rear them as a hobby. According to business today , in Kenya, the ornamental birds being kept include crested cranes, parrots, peacocks, Egyptian geese, royal pan turkey, white turkey, fantail pigeon, Sinnamon-tail pigeon, Silkish bantam chicken, Americana hens and spa fowls. The manure produced by such birds is also one of the major reasons farmers rear the birds. Diversification of the birds reared is a real need in Kenya currently. This is because the market is oversaturated with chicken which has been the main bird reared in Kenya for a long time. The target market for ornamental birds is mostly the growing middle income earners in Nairobi and beyond. Ornamental birds can be used for food since their meat is considered to be heartier and more delicious. Their meat has more protein as well. They can also be used to protect homes from strangers. This is because they make a lot of noise when visitors intrude. They make the same noise when they see snakes, rats, dogs etc. To rear ornamental birds in Kenya, one must have a license from the KWS (Kenya Wildlife Service) which goes for ksh. 1,550 and is renewable yearly.

❖ NOTABLE PLAYERS IN KENYA. a. Brookside. b. NKCC.

c. Githunguri. d. Sameer. e. Rabbit Breeders Association of Kenya

(Rabak)



https://businesstoday.co.ke/farmers-cash-rising-demand-ornamental-birds/

https://www.standardmedia.co.ke/farmkenya/article/2001347693/benefits-of-rearing-ornamental-birds-according-to-an-expert

https://businesstoday.co.ke/farmers-cash-rising-demand-ornamental-birds/




f. Deevabits Kenya Ltd g. Kenya meat commission. h. Kenya meat processors. i. Kenya livestock producers association.

4.2. HORTICULTURE.

Fig 16. Horticulture contribution to the GDP between 2016- 2020. Source: Primary. The contribution of cut flowers and vegetables to the GDP went a bit lower in 2019 as compared to the preceding year while that of fruits went up. As of 2020, when COVID-19 struck, a report by scope markets Kenya said that, “Shipments of flowers, vegetables, herbs and fruits to the European Union, which accounts for more than 80 per cent of horticulture exports from Kenya, all but ceased in March this year following the outbreak of the Covid-19 pandemic.”

❖ NOTABLE PLAYERS. a. KEPHIS b. Kenya Flower Council (KFC) c. Simbi Rose farm

d. Baraka roses. e. Fresh produce exporters association of

kenya. f. Envisage ltd. g. Interveg.






h. Kandia group. i. Kenya fresh.

j. Twiga foods.

4.3. CEREALS.

Fig 17. Cereals contribution to the GDP between 2016- 2020. Source: Primary. Considering that Kenya’s staple food is maize and the drastic increase in population, there is growing demand for cereals like maize across the country. According to globe news wire , “ as of 2018, the per capita consumption of maize in Kenya was 60 kgs, equivalent to 5kgs per person per month. Despite slight fluctuations, in favour of other food varieties, maize consumption has remained within the same range since 2009.” It was predicted that consumption would rise between 3 and 6%. Maize milling in Kenya is such a big thing because of the culture which is strongly tied to ugali.

❖ NOTABLE PLAYERS. a. Winnie's Pure Health Limited b. Unga Limited c. Mombasa Maize Millers d. Pembe Millers e. Baraka Millers f. Capwell Industries

g. Deliciously made and grown. h. Edarns enterprises limited. i. Maisha flour mills.



https://www.globenewswire.com/news-release/2020/03/10/1997783/0/en/The-2019-Kenya-Maize-Flour-Market-Report-As-of-2018-the-Per-Capita-Consumption-of-Maize-in-Kenya-was-60kg-Equivalent-to-5kg-Per-Person-Per-Month.html




4.4. PERMANENT CROPS.

A permanent crop is one produced from plants which last for many seasons, rather than being replanted after each harvest. These are are all fruit trees, all citrus fruit trees, all nut trees, all berry plantations, all vineyards, all olive trees and all other permanent crops used for human consumption (e.g. tea, coffee or carobs) and for other purposes (e.g. nurseries, Christmas trees or plants for plaiting and weaving such as rattan, or bamboo).

Fig 18. Permanent crops contribution to the GDP between 2016- 2020. Source: Primary.

❖ NOTABLE PLAYERS. a. Cargill Kenya. b. Unilever Kenya. c. Dormans. d. Africoff. e. Rockbern coffee. f. Sanexx coffee.

5. SUB SECTOR 2; FOOD AND BEVERAGE MANUFACTURE.

5.1. MEAT AND MEAT PRODUCTS

With the increase in population, there is growing demand for meat. Up to 67% of the meat produced in Kenya is produced in the arid and semi-arid areas.






❖ NOTABLE PLAYERS. a. Rabbit Breeders Association of Kenya

(Rabak) b. Deevabits Kenya Ltd c. Kenya meat commission. d. Kenya meat processors. e. Kenya livestock producers association.

5.2. ANIMALS AND VEGETABLE FATS AND OILS.

The Kenyan population has been growing more health conscious over the years. As such, Kenyans have been increasingly choosing organic food over unhealthy options. According to a survey carried out in 2017 by the International Federation of Organic Agriculture Movements, awareness of organic foods had improved by 10 per cent since 2013. As such, there has been increasing demand for options that are deemed healthier like corn oil. A report by Euromonitor indicates that sunflower oil is the most common vegetable oil in Kenya, used for multipurpose home cooking due to its neutral taste and high heating point. The euromonitor report states that, “Amid health concerns among the well-connected urban consumers with increasing disposable incomes, some middle- and upper-class households are opting for healthier variants of edible oils. A popular example is olive oil, which is a multi use item and deemed to be healthier than other oils.” According to Aoko Insights, “A number of cooking oils and fats are processed in Kenya, including palm, sunflower, copra and corn oil. Edible oil manufacturers have invested approximately $12.7 billion into the industry since 2014 as part of efforts to increase local manufacturing and decrease the import bill for raw inputs, which is estimated to be $35 million annually. Of the sector’s predominant imports, crude palm oil (CPO) is imported from Malaysia and Indonesia, while crude sunflower oil is imported from Ukraine and Argentina.” Local giant BIDCO for instance joined hands with the Safaricom PLC, the leading local telco company famous for

founding MPESA to promote sunflower and soya beans farming. Aoko insights reports that Bidco used Safaricom’s integrated mobile platform DigiFarm to provide technical support in the form of fertiliser, seeds and other inputs to increase farms’ productivity after which they went ahead to find a market for the farmers.

❖ NOTABLE PLAYERS. a. Bidco Kenya. b. Kapa oil. c. Menengai oil. d. Giloil. e. True foods. f. Diamond industries limited. g. Golden Africa Kenya limited.

5.3. DAIRY PRODUCTS.

The dairy sector as indicated above has been under pressure to evolve as consumers seek healthier options. This has led to the rapid development of raw cow milk alternatives like almond, oat, coconut and camel milk.

❖ NOTABLE PLAYERS. a. Brookside. b. NKCC. c. Githunguri. d. Sameer. e. Nuug camel milk. f. Vital camel milk. g. Sirimon cheese. h. White gold camel milk.

NB: A report by Frans Ettema indicated that the first four key players listed above “are the largest ones processing together ca. 85% of the 1.5 million kilogrames of milk processed daily.”

5.4. BAKERY PRODUCTS.

According to Euromonitor, “As the rise of the health and wellness trend floods the country, manufacturers are responding to the demands of health-conscious consumers. Healthy innovations of bread, such as flaxseed and whole-grains, have been entering baked goods. Amid health concerns, consumers are opting for bread that is sold in traditional artisanal bakeries which stock numerous varieties. These breads are characteristically made using



https://www.euromonitor.com/edible-oils-in-kenya/report

https://asokoinsight.com/content/market-insights/kenya-edible-oil-manufacturers

https://www.dairyfarmer.net/fileadmin/user_upload/40_downloads/kenya-dairying-ETTEMA.pdf

https://www.euromonitor.com/baked-goods-in-kenya/report




natural yeast as opposed to industrial yeast, which is used in packaged leavened bread.” The report further states that the consumer demands have driven supermarkets to start offering in store bakery services that adapt fast to the consumer demands. Leading players such as festive bread and mini bakeries have continued to grow their brand awareness using online channels. According to a geopoll study, post COVID, the number of times bread was bought actually increased.

Fig 19. Top ten most frequently purchased FMCG products in Kenya: Pre- and Post - COVID Source: Geopoll. https://www.geopoll.com/blog/fmcg-purchases-kenya-covid/



https://www.geopoll.com/blog/fmcg-purchases-kenya-covid/




Fig 20. Factors influencing consumer purchase decisions pre- and post - COVID. Source: Geopoll. https://www.geopoll.com/blog/fmcg-purchases-kenya-covid/ “Overall, the results of the studies showed that quality was by far the key driver of FMCG purchases. In every product category other than beverages, quality influenced purchases at least 20% more than any other factor in both rounds. When comparing the studies against one another, there was even a slight increase in the role that quality played in the purchases reported in round two, which indicates that quality plays an even more important role in FMCG purchasing decisions in a post-COVID era than the pre-COVID era”,states the report.

❖ NOTABLE PLAYERS. a. Baker’s Inn b. Cake city. c. Fayaz bakerz limited. d. Valentines cake house.

e. Naivas bakery. f. Festive. g. Akiyda. h. Broadway.



https://www.geopoll.com/blog/fmcg-purchases-kenya-covid/




5.5 COCOA, CHOCOLATE AND SUGAR CONFECTIONERY.

“The global health and wellness trend continued to influence many packaged food categories in Kenya in 2019, including chocolate confectionery. Thanks to increasing health awareness, Kenyan parents paid more attention to the diets of their children, heeding the advice of health experts as to the effects of chocolate confectionery on childhood obesity, the incidence of which has been rising,” states a euromonitor report. During the study period, chocolate pouches and bags was the best performing category in both retail volume and current value terms. In 2018, Uganda and Tanzania imposed taxes on Kenyan-made packaged food products containing added sugar, including chocolate confectionery, stating that this was due to the use of imported industrial sugar in the manufacture of these goods. As of 2019, Cadbury was the leading brand in this

sector although the company saw its share declining by 2.5% due to competition among other factors. The report states that organic low sugar confectionery has grown, “with sales driven by factors such as the use of sustainable cocoa beans as well as production without the use of pesticides or fertilisers. This concept appeals to those who are health-conscious, are aware of the drawbacks of chemical-containing products and particularly want to support smaller disadvantaged communities.”

❖ NOTABLE PLAYERS. a. Cadbury. b. The chocolate bar. c. Dairyland. d. Sweet art creations. e. Kiss chocolates.

5.6. BEVERAGES.

Fig 21. Juices market share in Kenya. Source: https://www.geopoll.com/blog/the-top-fast-moving-brands-in-kenya/



https://www.euromonitor.com/chocolate-confectionery-in-kenya/report

https://www.geopoll.com/blog/the-top-fast-moving-brands-in-kenya/




Fig 22. Soft drinks market share in Kenya. Source: https://www.africon.de/slide-of-the-month-sotm-september-the-soft-drinks-market-in-kenya/ According to the two charts above, coca cola and Kevian continue to lead the beverage sector in the soda and juices sectors respectively in Kenya. Excel limited has also continued to remain innovative and competitive in this race to gain market share.

Fig 23. Go frut juice by Excel chemicals. Source: excel.co.ke

❖ NOTABLE PLAYERS. a. Cocacola. b. Kevian Limited. c. Delmonte. d. Highlands.

e. Suntory beverages. f. Excel limited. g. Azam. h. Picana. i. Pic and peel. j. Minute maid.



https://www.africon.de/slide-of-the-month-sotm-september-the-soft-drinks-market-in-kenya/

https://excel.co.ke/




5. MARKETING STRATEGIES EMPLOYED BY THE NOTABLE PLAYERS IN KENYA.

WHERE THE OPPORTUNITIES LIE IN FOOD AND BEVERAGE IN KENYA - BASED ON A SITUATIONAL ANALYSIS

This section shall focus on where the opportunities lie currently.


Strengths 1. It is an industry that is currently being

supported by the Kenyan big four agenda hence there is some government support under the “100% food security pillar.”

2. There is a rise in the number of middle income earners. According to KNBS, these are people spending anything between ksh. 23,670 and Ksh. 199,999 in a month. This in turn means that the demand for food and beverage will continue to grow.

3. Political stability in the country has grown since the 2007 general elections.

Weaknesses 1. Oversupply in specific sub sectors e.g rearing

of poultry and raw cow milk. 2. Limited knowledge by investors which inhibit

their engagement in the production of more effective healthy foods and alternatives .

Opportunities 1. Investors can engage in the production of

more effective healthy foods. 2. Industry players can participate in DRIP

marketing - Differentiation of services as healthy alternatives. Reinforcing the brand’s message of a healthier offering. Inform or make people aware of the brand. Persuade audiences to live more healthy lifestyles.

Threats 1. Political temperatures as Kenya approaches

the general elections may be uncertain. This coupled with the fact that the COVID - 19 pandemic has affected the economy may impact the food industry negatively.





OVERALL STRATEGY

Fig. 24 The three types of marketing strategies Source: Marketing communications (Chris Fills, 2009).

PUSH STRATEGY

Push marketing strategies are used to communicate with channel intermediaries, such as dealers, distributors and retailers, otherwise referred to as the ‘trade’ or channel buyers, Chris fills 2009. Under push strategy, the one marketing tactic used overall in Kenya is the use of intermediaries like wholesalers, supermarkets and retail outlets to sell foods and beverages. This has both advantages and disadvantages.

Fig. 25 The direction of communication in a push strategy. Source: Primary.

PULL STRATEGY

Pull strategies are used to communicate directly with end-user customers. These may be consumers but they might also be other organisations within a business-to-business context, Chris Fills, 2009. Some of the methods used to pull consumers in food and beverage:

● Personal selling in supermarkets and stores.






● Use of influencers to sell the product on social media and to endorse the brand.

Fig. 26 The direction of communication in a pull strategy. Source: Primary. In a pull strategy, mostly the aim is to differentiate, remind or reassure, inform and persuade the audience to think or act in a certain way. As has already been introduced above, quite a good number of food and beverage/ livestock manufacturers use third parties to sell their products. However, it is also important to note that some of the key players actually sell directly online. The most commonly employed F&B marketing tactics under the pull strategy are:

● Email marketing. ● Billboards. ● Social media paid advertising. ● TV and radio advertisements. ● Sales promotions and trade expos. ● Website promotion. ● Search engine marketing. ● Quality photography and videography for social media content.

PROFILE STRATEGY

A profile strategy is a non-personal form of communication used by companies to build trust, goodwill, interest and ultimately relationships, with a range of stakeholders, Chris Fills, 2009. Profile strategy focuses on the needs of the stakeholders and aims to meet them. This can range depending on the needs. Some pull or push tactics can actually be converted to profile if they change the focus of the message to meet the needs of the various stakeholders. These tactics are:

● Email marketing. ● Billboards. ● Social media paid advertising. ● TV and radio advertisements. ● Sales promotions and trade expos. ● Website promotion. ● Search engine marketing.






● Quality photography and videography for social media content. Quality Is the key sales driver across the food industry except for beverages where the key driver is the brand. A good profile strategy can help communicate that. Very few food and beverage organizations have a well done profile strategy. THE MARKETING MIX

Fig. 27 The 7 P’s of marketing Source: Kotler (1976)

Fig. 28 The extended 7 P’s of marketing for services Source: Booms and Bitner (1981)






PRODUCT

Food and beverage marketers have continuously been innovating and trying to come up with new ways to make the products healthier. The recent years have seen food and beverage companies switch to different categories. A good example is minute maid below.

Fig. 29 Minute maid.

Source: https://twitter.com/minutemaidke

Fig. 30 Afia juice

Source: https://web.facebook.com/afiaea/photos/a.874461116024680/1989619164508864/



https://twitter.com/minutemaidke

https://web.facebook.com/afiaea/photos/a.874461116024680/1989619164508864/




Fig. 31 Smart new packs by ranee rice.

Source: https://www.adsoftheworld.com/media/print/ranee_haishikani



https://www.adsoftheworld.com/media/print/ranee_haishikani




Fig. 32 Delite yoghurt.

Source: https://www.adsoftheworld.com/media/print/delite_yoghurt_soda

Fig. 31 Coca Cola coffee plus.

Source: https://www.foodbusinessafrica.com/coca-cola-launches-coffee-infused-cola-drink-in-south-africa/



https://www.adsoftheworld.com/media/print/delite_yoghurt_soda

https://www.foodbusinessafrica.com/coca-cola-launches-coffee-infused-cola-drink-in-south-africa/




PRICE

Consumers are now considering price more. Arguably, this is because of the impact that COVID-19 has had on the economy and the buyers spending capacity in general. As such, companies have had to find a way to sell the products at the most affordable price which they can manage to.

Fig. 32 Kamundia butchery. Source: https://www.kamundiabutchery.co.ke/

Fig. 33 Royco content marketing campaign. Source: https://tdsmarketers.com/successful-content-marketing-campaigns/



https://www.kamundiabutchery.co.ke/

https://tdsmarketers.com/successful-content-marketing-campaigns/




Fig. 34 Snikkers. Source: https://tdsmarketers.com/successful-content-marketing-campaigns/

PLACE

For food and beverage, the distribution channel may be either of the following:

Fig. 35 F&B distribution channel. Source: Primary. Of course this has advantages and disadvantages alike.

PROMOTION

Overall, there has been an increase in the ad spend in Kenya by companies. Although it was not possible to retrieve the ad spend specifically by the food and beverage companies and animal/crop producers, it is suffice to say that there has also been a rise in TV, radio and such media in the food and beverage sector.



https://tdsmarketers.com/successful-content-marketing-campaigns/




Fig. 36 Delmonte. Source: https://www.adsoftheworld.com/taxonomy/brand/del_monte_food

Fig. 37 KFC advert.

Source: http://afro-ip.blogspot.com/2017/10/a-questionable-ad-campaign-from-kfc.html



https://www.adsoftheworld.com/taxonomy/brand/del_monte_food

http://afro-ip.blogspot.com/2017/10/a-questionable-ad-campaign-from-kfc.html




Fig. 38 Chicken inn advertisement.

Source: http://www.jaynazmediaco.com/

Fig. 39 Orbit.

Source: https://www.adsoftheworld.com/media/print/orbit_world_health_day



http://www.jaynazmediaco.com/

https://www.adsoftheworld.com/media/print/orbit_world_health_day




Fig. 40 Amber hotel.

Source: https://www.adsoftheworld.com/media/print/amber_hotel_amberspaghetti

Fig. 41 Burning billboard.

Source: https://www.adsoftheworld.com/media/outdoor/taystee_chili_sauce_burned_billdoabrd



https://www.adsoftheworld.com/media/print/amber_hotel_amberspaghetti

https://www.adsoftheworld.com/media/outdoor/taystee_chili_sauce_burned_billdoabrd




Fig. 42 Ad spend.

Source: https://www.statista.com/statistics/616080/kenya-ad-spend-medium/ Kenyan food and beverage companies have been using the medium above to gain traction in the market. The methods most commonly used are:

● Advertising

PHYSICAL EVIDENCE

Physical evidence refers to the external environment in which the service is being provided. It is also the space where the customers & service personnel interact. Under physical evidence, most Kenyan companies have upped their game.



https://www.statista.com/statistics/616080/kenya-ad-spend-medium/




Fig. 43 quickmart fresh food concept. Source:

https://thetruth.co.ke/business/corporate-news/quickmart-takes-fresheasy-24hour-shopping-to-nairobis-leafy-suburb-of-lavington/

The photo above shows the quickmart fresh foods concept. Even the actual food and beverage presentation has been elevated as notable players compete.

PEOPLE

People refer to the service personnel that represent the company and or human factors participating in the service sector of the company.








Fig. 44 Tictac brand activation concept.

Source: http://www.dragonfly.co.ke/refreshment-share-2/

PROCESS

Process refers to the mechanisms, way or flow of activities by which a service is delivered. It includes process design, blueprinting, standardization & customization decisions, monitoring & tracking service performance, etc. Twiga foods and the likes have been trying to improve in how the food is delivered to the consumers. Twiga foods has for instance partnered with jumia to deliver food directly.



http://www.dragonfly.co.ke/refreshment-share-2/




Fig. 45 Twiga foods delivery. Source: https://twitter.com/twigafoods

CONCLUSION

As more and more consumers become more knowledgeable, they demand to be presented with not just alternatives, but the best healthy most affordable alternatives. This trend is bound to continue in almost every sub sector of food and beverage production/manufacture. Moving forward, it will be mandatory for F&B producers/manufacturers to present the consumer with healthier and more affordable alternatives. Post COVID-19 the consumer has become more price sensitive. Going by the data in a recent study (indicated above), the consumer will continue to demand more for less. Marketers who invest in better presentation as a key driver for sales will continue to see growth in their companies. The consumer has become more knowledgeable about their options and with the advent of the internet where they can find a lot of information online, they will continue to ask more questions like: “where do you source your food and beverage from?” As such, companies will need to answer these questions before they are asked in order to maximize conversion. Another frequently asked question is and will continue to be, “How else can I use your product?” As such, the content marketing strategy adopted by Royco currently and the likes will continue to bring in more leads. Consumers want as much information as possible and the source of the information better be trustworthy and accessible. This is to mean that companies will want to control the conversation around their brand, all while remaining trustworthy and not coming off as too salesy. The people who F&B producers/manufacturers hire will also be a key driver of sales. Having a “mtu wa mkono”, who is not qualified will not work anymore! Today’s consumer is more literate and demanding. This is one of their major demands - the customer service must be good!



https://twitter.com/twigafoods




HOW TO CITE THIS Kenyanito Baraka (2020), How the Kenyan food and beverage industry is coping with Covid-19 in Kenya, Journal of brand building in Africa. REFERENCES Booms, B.H. and Bitner, M.J. (1981), “Marketing strategies and organization structures for service firms”, in Donnelly, J.H. and George, W.R. (Eds), Marketing of Services, American Marketing Association, Chicago, IL, pp. 47-51. Kotler, P. (1976), Marketing Management, 3rd ed., Prentice-Hall, Englewood Cliffs, NJ, p. 60. Kenya economic update, Policy Options during the COVID-19 Pandemic, Turbulent Times for Growth in Kenya, April 2020 | Edition No. 21 Kenya’s 2019/20 budget and the big four agenda: a pro poor analysis https://devinit.org/resources/kenyas-201920-budget-and-the-big-four-agenda-a-pro-poor-analysis/ Chris Fills, 2009, Marketing communications; interactivity, communities and content, fifth edition. https://www.geopoll.com/blog/online-shoppers-in-sub-saharan-africa-still-dont-trust-e-commerce-sites-despite-adoption-of-black-friday/ https://searchengineland.com/data-consumers-grow-demanding-impatient-brands-fall-behind-281075#:~:text=There's%20considerable%20evidence%20that%20consumers,significant%20risk%20and%20lost%20opportunities. https://globaledge.msu.edu/industries/food-and-beverage/memo



https://devinit.org/resources/kenyas-201920-budget-and-the-big-four-agenda-a-pro-poor-analysis/

https://devinit.org/resources/kenyas-201920-budget-and-the-big-four-agenda-a-pro-poor-analysis/

https://www.geopoll.com/blog/online-shoppers-in-sub-saharan-africa-still-dont-trust-e-commerce-sites-despite-adoption-of-black-friday/



https://searchengineland.com/data-consumers-grow-demanding-impatient-brands-fall-behind-281075#:~:text=There's%20considerable%20evidence%20that%20consumers,significant%20risk%20and%20lost%20opportunities








4.2. horticulture. 4.4. permanent crops. 5.4. bakery …

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