Quality, Price, and Competition Strategy Effects on Performance of Soft Drink Enterprises in Rwanda

Abstract

Amidst market performance challenges of declining customer numbers and sales for some soft drinks enterprises in Rwanda, that has caused a big concern for academics and professionals, the study set to empirically investigate the effect of quality, price and competition strategies on sales and customer retention performance for these enterprises. The study was quantitative and cross-sectional where researchers obtained data at a single point in time on more than one case. A sample size of 118 marketing managers was taken from these enterprises in the central districts of Kigali that produce carbonated drinks, mineral water and juice. Due to corona virus pandemic, virtual means of data collection were used through telephone-based questionnaire survey. Despite the positive and significant relationship between quality and price strategies with market performance, (  =0.500, t=1.09, p<0.01) for quality, (  =0.23, t=3.05, p<0.01) for price, results for competition strategies (  =0.23, t=3.05, p=0.281), show nonsignificant relationship with market performance in the studied context. This finding manifests a big gap in managing competition and therefore advise these enterprises to revisit their competition management decisions and make investment in those positioning alternatives that impact on consumer perceptions