The Effectiveness of Floriculture Agrochemicals Distribution in Kenya: A Case Study of Bayer Crop Science Limited

Project submitted to the School of Business in partial fulfillment of the requirement for the degree of Masters in Business Administration (MBA).As globalization take center-stage of today’s marketing world, so does competition. With this in mind, marketing managers must use an effective system that delivers goods and services to the target market in the quantities required and within the desired time. High quality products cannot be marketed effectively when improper channels are used or when problems occur within proper channels. The agrochemical industry in Kenya and more so the sensitive floriculture sector has an ineffective distribution system that affects the business of com0panies. Bayer Crop Science (BCS), E.A. Ltd, is one of the leading players in this sector and has not managed to develop an effective physical distribution strategy. In order to develop a competitive strategy, research focusing on purchasing behavior of flower farms and flower sector distributors (intermediaries) was conducted. A questionnaire was used to gather primary data from a random sample of flower farms in Kenya. Secondary data was obtained from magazines, journals and text books. Data gathered was then analyzed by Statistical Packages for Social Sciences (SPSS) and Excel and presented in frequency tables, pie charts and bar graphs. The study revealed that the flower sector would like a wide range of products available on short notice and credit period of at least two months. The critical factors that influence customer preferences and their purchasing behavior are price offered and product range availability under one roof. The findings also revealed that firms would like product delivery and value added by the supplier in terms oaf technical support and training on pests and disease management issues. Based on the discussion derived from the results of the findings it sis clear that a hybrid of use of existing distributors and direct sales to some flower farms will be the best way forward. A cost benefit analysis of delivering the product direct to flower farms should be undertaken. The distributors in the sector need to be increased and all the players given a level playing field in terms of credit terms, discounts and support form Bayer Crop Science. A selected number of farms with thorough scrutiny done should be considered for direct sales, but with the leeway to opt for purchase from the distributors if they so wish