MAKERERE UNIVERSITY

MAKERERE UNIVERSITY BUSINESS SCHOOL

THE IMPACT OF EXPORT MARKETING STRATEGY ON EXPORT

PERFORMANCE A CASE STUDY OF KAKIRA SUGAR WORKS LIMITED

BY

ATUHAIRE MURARI JOSH

REG NO 17/U/12016/PS

SUPERVISED

MS. MONICA GIMBO

(ACADEMIC SUPERVISOR)

A RESEARCH REPORT SUBMITTED TO MAKERERE UNIVERSITY BUSINESS

SCHOOL IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

AWARD OF A BACHELORS DEGREE OF INTERNATIONAL

BUSINESS OF MAKERERE UNIVERSITY

DECEMBER, 2020
 DECLARATION

I ATUHAIRE MURARI JOSH, declare that this research report contains my own original work
and has never been submitted for any award of degree in any other university.

Signature: ---------------------------------------------- Date: --------------/------------/-------------------

ATUHAIRE MURARI JOSH

REG NO 17/U/12016/PS

ii
 APPROVAL
This is to certify that this work was done by Atuhaire Murari Josh under my supervision and is
now ready for submission.

Signature: ---------------------------------------------- Date: --------------/------------/-------------------

MS. MONICA GIMBO

(ACADEMIC SUPERVISOR)

iii
 DEDICATION

I dedicate this research to my beloved parents for all the support. Not forgetting other family
members and friends at large. May the Almighty Lord reward you all abundantly. God bless you,
Amen.

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 ACKNOWLEDGEMENT
I wish to thank my supervisor Ms. Monica Gimbo for her guidance, the faculty of marketing and
international business for the encouragement plus inspiration towards the completion of this
work. May God reward you abundantly?

I also wish to thank my family. I also extend my thanks to my parents all the moral, financial and
emotional support rendered, encouragement and advice. Thank you for sacrificing whatever you
could for my sake. May God reward you abundantly.

I extend my gratitude to my friends; like Gabriel and kate for the encouragement, love, support
rendered to me during the course of my study. May God bless you all.

Lastly, I wish to thank God who has brought me this far.

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TABLE OF CONTENT

DECLARATION.............................................................................................................................ii
APPROVAL...................................................................................................................................iii
ACKNOWLEDGEMENT...............................................................................................................v
LIST OF TABLES..........................................................................................................................ix
List of figures...................................................................................................................................x
LIST OF ABBREVATIONS..........................................................................................................xi
ABSTRACT..................................................................................................................................xii
CHAPTER ONE..............................................................................................................................1
1.0 Introduction...........................................................................................................................1
1.1 Background of the Study......................................................................................................1
1.2 Statement of the Problem......................................................................................................3
1.3 Purpose of the Study.............................................................................................................3
1.4 Objectives of the Study.........................................................................................................3
1.5 Research Questions.............................................................................................................4
1.6 Scope of the Study...............................................................................................................4
1.6.1 Subject Scope........................................................................................................................4
1.6.2 Time Scope...........................................................................................................................4
1.6.3 Geographical Scope..............................................................................................................4
1.7 Significance of the Study....................................................................................................4
1.8 Conceptual Framework.........................................................................................................5
CHAPTER TWO.............................................................................................................................6
LITERATURE REVIEW................................................................................................................6
2.0 Introduction...........................................................................................................................6
2.1 Export Marketing Strategy...................................................................................................6
2.2 Components of export marketing strategy............................................................................6
2.2.1 Product Strategy....................................................................................................................6
2.2.2 Pricing Strategy....................................................................................................................7

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2.2.3 Promotion Strategy...........................................................................................................8
2.2.4 Distribution Strategy.........................................................................................................8
2.3 Export Performance..............................................................................................................9
2.3.1 Export Performance Measures............................................................................................10
2.3.2 Export Intensity..................................................................................................................10
2.3.3 Profitability.........................................................................................................................11
2.3.4 Number of Markets / Diversification..................................................................................11
2.3.5 Managerial Satisfaction......................................................................................................12
2.4 Relationships between Export Marketing Strategy and Export Performance....................13
CHAPTER THREE.......................................................................................................................16
METHODOLOGY........................................................................................................................16
3.0 Introduction..........................................................................................................................16
3.1 Research Design.................................................................................................................16
3.2 Study Population.................................................................................................................16
3.3 Sample Size........................................................................................................................16
3.4 Sampling technique............................................................................................................17
3.5 Source of Data....................................................................................................................17
3.5.1 Primary Data.......................................................................................................................17
3.5.2 Secondary data....................................................................................................................17
3.6 Data collection methods.....................................................................................................17
3.6.1 Questionnaires....................................................................................................................18
3.7 Validity and reliability of the instruments..........................................................................18
3.7.1 Validity of the Research Instruments.................................................................................18
3.7.2 Reliability of the Instrument..............................................................................................18
3.8 Data Processing and analysis..............................................................................................19
3.9 Limitations of the study......................................................................................................19
3.10 Ethical consideration..........................................................................................................20
CHAPTER FOUR.........................................................................................................................21
PRESENTATION, ANALYSIS AND INTERPRETATION OF THE STUDY FINDINGS......21
4.0 Introduction..........................................................................................................................21
4.1 Response rate......................................................................................................................21
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4.2 Demographic Characteristics..............................................................................................21
4.1.1. Respondents by gender.......................................................................................................21
4.1.2 Age group of respondents...................................................................................................22
4.1.3: The Level of Education......................................................................................................23
4.2 Components of export marketing strategy adopted by Kakira Sugar Works Limited.......24
4.3 Export Performance of Kakira Sugar Works Limited........................................................27
4.4 The Relationship between Export Marketing Strategy and Export Performance at Kakira
Sugar Works Limited.....................................................................................................................31
CHAPTER FIVE...........................................................................................................................36
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS..........................36
5.0 Introduction.........................................................................................................................36
5.1.1 Components of export Marketing Strategy adopted by Kakira Sugar Works Limited......36
5.1.2 Level of export performance by Kakira Sugar Works Limited..........................................37
5.1.3 The relationship between export Marketing Strategy and export performance at Kakira
Sugar Works Limited.....................................................................................................................38
5.2 Conclusion..........................................................................................................................39
5.1.2 Recommendations...............................................................................................................39
5.4 Areas for further research....................................................................................................40
REFERENCES..............................................................................................................................41
Section C: Level of Export Performance of Kakira Sugar Works Limited...................................48
Section D: Relationships between Export Marketing Strategy and Export Performance.............49
Appendix 2: Morgan Table............................................................................................................50

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 LIST OF TABLES

Table 1: Showing composition of the sample frame.....................................................................17

Table 2: Age group of respondents................................................................................................23

Table 3: Level of education...........................................................................................................23

Table 4: showing the export marketing strategy adopted by Kakira Sugar Works Limited.........24

Table 5: Export Performance of Kakira Sugar Works Limited.....................................................28

Table 6: Relationship between Export Marketing Strategy and Export Performance At Kakira

Sugar Works Limited.....................................................................................................................31

Table 7: Responses on the Relationship between export Marketing Strategy and export

performance at Kakira Sugar Works Limited................................................................................34

Table 8:Relationship between export Marketing Strategy and export performance.....................34

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 List of figures

Figure 1: Showing the conceptual Framework................................................................................5

Figure 2: Respondents by gender..................................................................................................22

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 LIST OF ABBREVATIONS

EAC………………………………….East African Community

EMC ................................................. Export Management Companies

GDP .................................................. Gross Domestic Product

ISO .................................................... International Organisation for Standardisation

KSWL…………………………………Kakira Sugar Works Ltd

SMEs…………………………………Small and Medium Enterprises

WB …………………………………..World Bank

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 ABSTRACT

The study was carried out to establish the relationship between export Marketing Strategy and
export performance. The objectives include; to identify the components of export Marketing
Strategy adopted by Kakira Sugar Works Limited, to examine the export performance of Kakira
Sugar Works Limited, to establish the relationship between export Marketing Strategy and
export performance at Kakira Sugar Works Limited.

Using the research objectives, relevant literature was put forward from different scholars and this
was attained from secondary data sources line internet and text books in order to answer the
research questions.

The study was carried out using a survey within a case study research design, using quantitative
data collection and analysis method. Primary data was collected through interviews using
questionnaires and secondary data from journals, text books and periodicals.

The findings revealed that result of the present study was a negative weak relationship between
export Marketing Strategy and export performance at Kakira Sugar Works Limited however
there is a number of different factors like the trade policies, brand loyalty, pricing approaches
and market research that also have an impact on export performance.

Based on the findings, it was discovered that that the promotion strategies employed by Kakira
Sugar Works Limited on export market is not very satisfactory in determining export
performance therefore its recommended that Kakira Sugar Works Limited needs to focus more
on its promotions activities on export market in order to improve on their export performance.

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 CHAPTER ONE

1.0 Introduction
This chapter presents the background of the study, statement of the problem, purpose of
the study, objectives of the study, research questions, scope of the study and the
significant of the study.

2.0 Background of the Study

Export marketing strategy refers to the manner export firms respond to external market
forces in meeting objectives, via all aspects of the marketing mix, including product,
price, promotion and distribution (Cavusgil et al., 2014). A firm’s understanding of
export marketing strategy is important because exporting improves utilization of a firm’s
productive capacity, improves financial performance and competitive edge as well as
provide a foundation for future international expansion (Lu & Beamish, 2001; Ural,
2009).
According to Katsikeas et al. (2000), a good practice of export marketing strategy can
help to achieve superior export performance, which is particularly important for public
policy makers, business managers and marketing researchers. That is because public
policy makers view exporting as a means of accumulating foreign exchange reserves,
increase employment levels, improving productivity, and enhancing societal prosperity
(Czinkota, 2004); business managers seek through exporting to improve corporate growth
and capacity utilization, strengthen their financial performance and competitive edge, and
ensure their firm's survival in a globalized market (Samiee and Walters, 2000); while,
marketing researchers consider exporting as an area for theory building in international
marketing (Zou and Stan, 2008).

Export performance can broadly be defined as the outcome of a firm's activities in export
markets (Muhammed & Saleem, 2008). Cadogan et al. (2003) define it as the firm’s
degree of economic achievement in its export markets. Whereas there is a growing body
of literature regarding export performance, its conceptualization and subsequent
operationalization has remained a thorny issue in exporting literature (Muhammad &

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Saleem, 2008; Vusi & Kamilla, 2002). It is apparent that measurement of export
performance is based on a firm’s objectives-whether to increase profit margins, enter new
markets, increase market shares or attain a new segment of customers
(Tonesakulrungruang, 2009).

For the past two years, Uganda’s sugar exports declined by 54% decline amid continued
trade wars with neighboring East African countries. (Okello, 2020) Data from Bank of
Uganda indicates that for the month ending June, Uganda exported 14,991 tonnes of
sugar, fetching $7.4m (Shs27.3b) down from 23,212 tonnes, which fetched $11.4m
(Shs42.3b) in May. The decline is blamed on Tanzania and Kenya continuing to restrict
Uganda’s sugar. Kenya in July 2020 banned sugar imports, opting to solve challenges
facing the country’s sugar industry. The ban means that at least 35,000 tonnes of sugar
exports from Uganda will be locked out of Kenya, which is expected to increase
Uganda’s stockpile, according to Uganda Sugar Manufacturers Association. Tanzania,
which had previously completely banned exports from Uganda, only allows in about
20,000 tonnes of sugar.

Uganda’s biggest sugar producer and exporter remain Kakira Sugar Works with an
annual production of 180,000 tonnes while Kinyara Sugar Works produces 120,000
tonnes. Sugar Corporation of Uganda Limited produces about 100,000 tonnes. According
to Ministry of Trade, Uganda produces 510,000 tonnes of sugar out of which 360,000
tonnes are consumed locally. The surplus, which has now grown to 170,000 tonnes, is
exported within East Africa, Comesa and DR Congo and the major fall in export
performance has been registered in Kakira Sugar Works Ltd.

Kakira Sugar Works Limited in an attempt to boost export sales of sugar has initiated
export Marketing Strategy like; reducing prices of its sugar in countries like Kenya and
Tanzania but still the levels of export performance have continued to decline. With above
background there is need to carry out a research on the impact of export marketing
strategies on export performance so as to come up the solution to the problem.

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1.2 Statement of the Problem
Despite the implementation several export Marketing Strategy by Kakira Sugar Works
Limited, existing statistics indicate that the a drop in the major performance of sugar in
export markets like Kenya and Tanzania have remained marginally low; characterized by
low sales, low profits and small market share. In the financial year 2018/2019, Kakira
Sugar Limited failed to meet its target for sugar exports. (Kintu, 2019) According to
Kintu, they only managed to export 120, 000 tons of sugar to the neighboring countries
out of the projected 180,000 tons. This blamed on banned exports from Uganda. This
indicated a poor performance of 66.6% below set export targets with export sales revenue
falling from $4.89 million in 2016 to 4.26 million dollars (Kintu, 2019). In addition,
current East African Community (EAC) export incentives have not helped the export
performance If the current situation persists, Kakira Sugar Works Limited exports could
dwindle, hence degenerating into heavy losses thereby jeopardizing the realization of
Kakira Sugar Works Limited export targets that seeks to increase export revenue.
Therefore, there is need for management to adopt appropriate export Marketing Strategy
in order to boost its export performance. Basing on this background, this research
proposes to carry out a study on the relationship between export marketing strategy and
export performance taking Kakira Sugar Works Limited as a case study.

1.3 Purpose of the Study

The study is to examine the relationship between export marketing strategy and export
performance.

1.4 Objectives of the Study.

i. To identify the components of export marketing strategy adopted by Kakira Sugar Works
Limited.
ii. To examine the level of export performance of Kakira Sugar Works Limited
iii. To establish the relationship between export Marketing Strategy and export performance
at Kakira Sugar Works Limited.

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1.5 Research Questions
i. What the components are of export Marketing Strategy adopted by Kakira Sugar Works
Limited?
ii. What is the level of export performance by Kakira Sugar Works Limited?
iii. What is the relationship between export Marketing Strategy and export performance at
Kakira Sugar Works Limited?

1.6 Scope of the Study

1.6.1 Subject Scope
The scope of the study focused on establishing the relationship between export Marketing
Strategy and export performance at Kakira Sugar Limited.

1.6.2 Time Scope

The study was conducted for a period of four months that is to say from January 2020 to
December 2020.

1.6.3 Geographical Scope

The research was carried out at carried out in Kakira Sugar Limited, located in Jinja
District in Eastern Uganda, particularly in Butembe County, Kakira Sub County which
is 16 kilo meters away from Jinja municipality.

1.7 Significance of the Study

This study was of relevance in the following ways;

i. The study enriched the knowledge on the contributions of export marketing to export
performance
ii. This study helps policy makers in Uganda to identify at the firm level the readiness and
competitive nature of exporting firms in the quest to enhance their level of export
performance. For instance, government can establish macro-level programmes and
policies to build capacity of exporting firms through initiatives in the area of finance,
infrastructure, networking, marketing entry supports, price control and many more.

xvi
 iii. The findings of this study helps to inform policy and management practices on how
export performance can be improved.
iv. This study can benefit Management of Kakira Sugar Works Limited improve its export
performance and reorganize the structure of its sales department in order to improve its
effectiveness.

1.8 Conceptual Framework

The study considered Export marketing strategy as an independent variable and Export
performance as a dependent variable. Export marketing strategy was measured using
elements like Product, Pricing, Distribution and promotion while export performance was
measured using variables like management satisfaction, financial goals and strategic
measures among others.

Figure 1: Showing the conceptual Framework.

Export performance

Export Market Share

Export marketing strategy
elements Profitability
Product
Pricing Strategic measures
Distribution
Promotion Managerial satisfaction

Sales Volume

Source: Adapted and modified from Literature review (Morgan et al. 2004)

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 CHAPTER TWO
LITERATURE REVIEW

2.0 Introduction
This chapter reviews the literature put forward by different scholars on the components of
export Marketing Strategy, export performance and the relationship between export
Marketing Strategy and export performance.

2.1 Export Marketing Strategy

The export marketing strategy refers to the manner export firms respond to external
market forces in meeting objectives, via all aspects of the marketing mix, including
product, price, promotion and distribution (Cavusgil et al., 2004). Export marketing
strategy has been described as a means by which a firm responds to the interplay of
internal and external forces to meet the objectives of the export venture (Lee & Griffith
2004: Stewart & McAuley, 2010). Marandu (2009), using insights from the marketing
concept, advises firms to adapt their marketing mix in order to appeal to the unique
customer needs and preferences. Through market tailoring, firms are able to surmount
market differences, including level of market development, physical conditions, legal,
and political situations that tend to characterize country markets

2.2 Components of export marketing strategy

Aziza &Samsinar (2008) observed that adaptation of the marketing mix (product
adaptation, price adaptation, promotion adaptation and distribution adaptation) remain the
common basis for defining export marketing strategy

2.2.1 Product Strategy

Another important issue under consideration in relation to export strategy is product and
product line (Cavusgil et al., 2004; Koh, 2001). Christensen et al. (2007) were earlier
researchers who started the argument for standardized product for exporters, which refers
to products that were sold in the domestic market and not designed and manufactured
only for foreign markets. The firm product strategy also considers the product line

xviii
 management as researchers have divided view on its impact on success. Christensen et al.
(2007) explained that, a firm having multiple product line is likely to succeed in exports.

Other studies were later conducted to build upon the studies on product adaptation. Koh
(2001) states that it is expected that a firm that is willing to modify its products to meet
the needs of its customers should perform better. Valos et al. (2006) in a study on
Australian SMEs identified that best product performance on key customer attributes in
comparison with competitors, and having a unique, timely, and well packed product are
success factors firms must strive to attain.

Zou et al. (2008) propose that product adaptation is influenced positively by a firm’s
international competencies, product uniqueness, cultural specificity of product, and
export market competitiveness; and negatively by firm’s experience with product
technology orientation of industry. Successful exporters were more likely to be
manufacturers of standardized products, that is, products that were sold in the domestic
market and not necessarily designed to fill customer specifically (Christensen et al,
2007). Product-line management even though has not been extensively investigated, has
still been considered that firms having multiple product lines are more successful in their
export activity (Christensen et al., 2007).

2.2.2 Pricing Strategy

Earlier studies also included pricing (Christensen et al., 2007) as a determinant of
successful exporting. Successful exporters place less emphasis on asking for premiums
for exchange and extraordinary risks and relied more on the internal competitive prices.
Aaby and Slater (2009) identified from a study conducted by Kirpalani and MacIntosh
(2000) that successful exporters arrange alternative price packages using tag price,
discount, and credit with the effect of giving the foreign customer an attractive total deal.
Zou, Feng and Zhao (2003) define pricing capabilities as the extent to which an export
venture can effectively use and manage pricing tactics to respond to competitor’s
challenge and customer’s changes in the export market.

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 Aaby and Slater (2009) concluded on this variable by saying that, successful exporters
consider all relevant cost in their decision and also consider both competitive prices and
internal costs and hurdle rates.

2.2.3 Promotion Strategy

Exporting firms who believe promotions in export market is an important determinant of
export performance achieved higher levels of export sales than those who emphasized
promotion less. Zou et al. (2008) discuss promotion adaptation as contingent on the
characteristics of firm, product, industry, and export market. The assumption proposed by
Zou et al. (2008) present an argument that the promotional activities need to be tied to the
product attribute, and external marketing environment. Thirkell et al. (2008) included
export promotion strategy as one of the variable of export marketing strategy. Export
promotions were assessed in terms of effectiveness relative to the campaigns of
competitors. Also they considered operationalizing staffing skills on the basis of foreign
language skills applicable to non-English speaking export markets. Another important
discussion on promotion is the level of adaption of promotional activities (Zou et al.,
2008).

2.2.4 Distribution Strategy

The perception of management on distribution channel is an important export success
determinant. Distribution capabilities are considered as the export venture’s ability to
provide superior support to export distributors and to develop a close relationship with
them (Zou et al., 2003). Thirkell et al. (2008) operationalized distribution variable as the
perceived importance of: meeting deadlines; after sales maintenance; ability to provide
physical demonstrations; and training of customer employees. High levels of market
sensing and customer service requires firms to maintain close relationship with
distributors so that exporters can have a strong influence on distributors in terms of
offering superior customer service (Zou et al., 2003). Zou et al. (2003) further assert that
a strong distribution capability helps secure such close cooperation from export
distributors.

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2.3 Export Performance
Shoham (2008) defined export performance as a composite outcome of a firm’s
international sales, which includes three dimensions: export sales, export profitability,
and export growth. The notion of export performance has a composite outcome of a
firm’s international sales. Tonesakulrungruang (2009), was consistent with previous
scholars, and described export performance as the extent to which a firm’s objectives are
attained in foreign markets because of specific orientations and strategies.

Export performance can broadly be defined as the outcome of a firm's activities in export
markets (Muhammed & Saleem, 2008). Cadogan et al. (2003) define it as the
firm‟sdegree of economic achievement in its export markets. Whereas there is a growing
body of literature regarding export performance, its conceptualization and subsequent
operationalisation has remained a thorny issue in exporting literature (Muhammad &
Saleem, 2008; Vusi & Kamilla, 2002). Consequently, several conceptual contributions
have appeared seeking to come up with dimensions and measures of export
performance. Leonidou et al. (2002) have identified that export intensity, export sales
growth, export profit level, export sales volume, market share, and export profit
contribution are mostly used measures of export performance. Ayse & akehurst (2003)
observe that export performance of a firm can be measured by using subjective and
objective measures since research shows that both yield consistent results (Hart &
Banbury, 1994; Olipia et al. 2006). They noted that objective measures are concerned
with absolute performance indicators whereas subjective are concerned with performance
of a business in relation to its major competitors or relative to a company‟s expectations.
However, Dodd et al. (2000); Carlos & Bakr (2002); Cadogan (2002); Cavusgil & Zou
(1994) claim that in most cases collecting absolute information is often difficult as most
firms do not wish to divulge such information. In brief, it seems clear that export
performance is a multifaceted concept and that no indicator is sufficient to provide a
reliable assessment of export performance. However it has been suggested that using a
combination of both subjective and objective measures can enhance the possibility
of accurately measuring the export performance of the firm (Al- Khalifa & Morgan,
1999; Olipia, Chawit and Amonrat, 2006).

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2.3.1 Export Performance Measures
Exporting refers to the sale of goods, services or technology produced by a company
resident in one country to customer’s resident in a different country (Kantapitat, 2009).
Consequently, a firm may export its products either directly (through its own network of
agents and distributors) or indirectly through other firms, which, in turn, export the
product(s) to the final market (Steers & Nordon, 2006). Exporting is an attractive foreign
market entry mode and expansion particularly to Small and Medium Enterprises (SMEs)
because it does not absorb the resources that overseas site operations (such as foreign
direct investment) generally demand (Shamsuddoha et al., 2009).

Although research on the subject of export performance is plentiful, evidence on the

measures of export performance is largely fragmented and often contradictory. Sousa
(2004) charges this phenomenon on the lack of agreement on the way to conceptualize
and/or operationalize export performance. As an affirmation to Sousa's (2004) concern,
Flor and Oltra (2005) suggest that the most controversial aspects in export performance
measurement relate to unit of analysis, number and type of dimensions that should be
included in the analysis and whether to employ objective or subjective indicators.

2.3.2 Export Intensity

Export intensity is another sale related objective measure of export performance,
expressed as the ratio of export sales to total sales (Maurel, 2009; White, Griffith &
Ryans, 2008). It measures the degree of firm involvement in export markets compared to
total sales and is thus viewed the most common measure of export success. The export
intensity measure requires respondents to estimate their firm's percentage of total sales
attributable to foreign sales. In support of the export intensity measure, Maurel (2009)
argued that measuring export performance through export intensity cancels the effect of
firm size, thus facilitating comparison between companies of different sizes, industries
and countries. Nonetheless, Das (2014) criticized the use of export intensity as a measure
of export performance. He argued that export intensity measures a firm's degree of
internationalization and not export performance. Nonetheless, due to its ease of
computation (White et al., 2008), export intensity is a commonly used export
performance indicator.
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2.3.3 Profitability
Compared to sales-related measures, profitability measures are less frequent in export
performance assessments (Sausa, 2004); Zou & Stan, 2008). The common profitability
measures include export profitability, profit margin and export profit margin growth often
in comparison with domestic sales (Pendergas et al., 2006). Conversely, market related
measures comprise indicators such as export market share, export market share growth
and market diversification (measured by number of markets entered). Based on market
measures, the number of countries served by a firm is a correlate to its international
success. As noted by White et al. (2008), this measurement may be captured by asking
respondents to provide the total number of countries in which they are currently
conducting business.

However, as Sousa (2014) argued, many companies often never provide information
related to their profitability. Moreover, majority of firms (especially SMEs) lack the
capacity to generate such information. This has made the use of objective measures in
studies involving SMEs problematic. Besides, Stewart (2007) observes the tendency of
researchers to focus on economic goals of the firm (through such indicators like sales
volume, sales and profitability) rather than on the strategic goals such as the desire to
enter a particular foreign market. As argued in Cavusgil and Zou (2004), Akyol and
Akehurst (2003), and later Sousa (2014), pursuing both options (economic and strategic
goals) simultaneously significantly improves the overall measurement of the export
performance construct.

2.3.4 Number of Markets / Diversification

The number of markets an export firm has in its export base is considered by many
studies as an export performance measure. Thirkell et al. (2008), argue that the number of
countries served by a firm indicates its success in reaching the international community.
They explained that, an implicit link exists between the number of foreign markets
entered and international success, given that if a firm is successful in its international
expansion, it may continue to expand business operations, while if not successful, and it
may retreat to the domestic market. This study however considered this variable in its
analysis. The market diversification indicator has been scantly used in the exporting
xxiii
 research. For instance, Sousa's (2004) empirical review found that only one study had
used the market diversification indicator; which he attributes, in part, to the difficulty in
measuring actual market share. This finding lends support to Dass (2004) earlier
observation that export market share is often very difficult to measure especially for
small firms. Despite the decimated application of the market diversification indicator.
Madsen (2008) provides a case for its utility. He argues that high market share leads to
scale and experience advantages on the cost side as well as more power in approaching
customers.

2.3.5 Managerial Satisfaction

White et al. (2008) provide defense for use of management’s satisfaction with export
performance. They contend that only a firm's management alone knows the goals and
expectations of the firm from exporting activities. This, according to White et al. (2008),
makes management better judges of whether or not the firm is achieving its goals than
would outside parties. This view is consistent with Kats keas, Piercy & Ioannidis (2006)
when they observed “export decision makers are guided by their subjective evaluations of
firm performance in export markets, rather than by objective, absolute performance
ratings”. Both Shoham and Krupp (2008) and Shoham (2008) included management
satisfaction with performance (in addition to the objective financial data component) in
the measurement of export performance. These authors, and consistent with Madsen
(2008) posit that managerial subjective satisfaction is important as it affects future
strategies.

2.4 Relationships between Export Marketing Strategy and Export Performance

Export marketing strategy according to Zou et al. (2008) is considered as a major
determinant of export performance. Items in the marketing strategy variable includes
firm’s general export strategy, marketing research utilization, product adaptation, price
competiveness, price determination, promotion adaptation, promotion intensity, channel

xxiv
adaptation, and channel relationship (Zou et al., 2008). Thirkell et al. (2008) in a
modified Aaby and Slater (2009) Strategic Export Model considered items such as
product (unique export product), pricing, promotion and staffing (cultural ability,
promotion campaign, and language skill), distribution channel support (physical product
demonstration, training customer training, after sales maintenance. Aaby and Slater
(2009) identified a number of studies that related management perception on importance
of distribution to propensity to export. They further acknowledged other studies which
confirmed that management perceives distribution, delivery and service to be important
export success factors.

Lee and Griffith (2014) found a positive relationship between overseas trade promotions
and export performance. However, in some studies the relationship between export
marketing strategy and export performance has been either insignificant or negative. For
instance, Cavusgil and Zou (2004) found an insignificant relationship between price
adaptation and export performance. Equally, overseas advertising expenditures and
export performance were found to be significantly and negatively correlated to export
performance (Zou & Stan, 2008). Besides, both Orcas &Julian (2013) and Aziza &
Samsinar (2008) did not find a significant relationship between export marketing strategy
and export performance of Malaysian wooden furniture exporters. According to the
authors, this phenomenon is attributable to the Malaysian wooden furniture exporters’
failure to adapt their export marketing strategy.

However, in some studies the relationship between export marketing strategy and export
performance has been either insignificant or negative. For instance, Cavusgil and Zou
(2004) found an insignificant relationship between price adaptation and export
performance. Equally, overseas advertising expenditures and export performance were
found to be significantly and negatively correlated to export performance (Zou & Stan,
2008). Besides, both Orcas and Julian (2003) and Aziza and Samsinar (2008) did not find
a significant relationship between export marketing strategy and export performance of
Malaysian wooden furniture exporters. According to the authors, this phenomenon is
attributable to the Malaysian wooden furniture exporters’ failure to adapt their export
marketing strategy.
xxv
From the review of Zou et al. (2008) export marketing strategy seems to be a consistent
determinant of export sales and export growth. Madsen (2007) however cautioned that
concentration on only Marketing Strategy may not be enough but advocates for a
multiple strategic approaches to exporting. Zou et al. (2008) support this assertion by
explaining the strategy selected must fit a particular circumstance of export operations.
The study drew a conclusion that SMEs which are slow growth exporters place greater
emphasis on least developing countries (LDCs). Firms responding to external forces and
recognizing the various internal competencies, adopt0 an export marketing strategy as
characterized by the marketing mix employed in respective export markets (Thirkell &
Dau, 1998). This variable is a central premise of Aaby & Slater (2009) model of export
performance. O‟Cass et al. (2013), argue that exporters must develop and implement an
export marketing mix strategy. Studies on export expansion process of SMEs reveal that,
firms consider their internal marketing abilities and export potentials before selecting the
type of markets to enter. Zou et al. (2008) admit export marketing strategy is widely
studied.

Product adaptation and product strength according to Zou et al. (2008) are considered as
the frequently studied by researchers and are found to be important determinants of
export sales, profits, and growth. This is explained as the ability of a firm’s product to be
transferred into a foreign market due to its adaptability and strength.

Cavusgil et al. (2004), identified that relevant product characteristics that influences
export marketing strategy include culture-specificity, strength of patents, unit value,
uniqueness, age, and service requirements of product.

Kats keas et al. (2006) regarding export pricing found that, competitive export price
levels are positively related to export performance. Kats keas et al. (2006) however states
that the importance of price as a competitive tool for a developing country exporter
diminishes as firm’s progress along the export development path.

xxvi
 CHAPTER THREE
METHODOLOGY

3.0 Introduction
This chapter involved the description of how the study was conducted that is the research
design, sampling design, population study, Sampling techniques, sources of data, validity
and reliability of data collection techniques, data processing and analysis and limitations
of the study.

3.1 Research Design

This research study adopted a cross-sectional survey design. This by which data
collection takes place at a single point in time, allowing analysis of a number of
variables at once and helped in looking at the prevalence of the research problem in the
study population. (Sedgwick, 2014)The research design used was cross sectional and
xxvii
 quantitative in nature. This was because the research employed both primary and
secondary data sources. The reason for choosing this design is that it widens the
parameter of the research scope entailing the use of both reviewed literature and
questionnaires.

3.2 Study Population

The study population included over 100 employees of Kakira Sugar Works Limited and
these were administrators, supervisors and other staff members. The researcher assumed
that these three target groups gave honest and true answers to the questions that the
researcher used to generalize the results of the research report. The research chose these
groups because they are actively involved in implementation of export marketing
strategies to enhance export performance.

3.3 Sample Size

Being aware that there would be no significantly better results attained through a censure
of the entire study population, the researcher used a Morgan’s table (attached on
appendix 2) and selected particularly 10 administrators, 20 supervisor and 50 staff in the
export unit of sales and marketing department of Kakira Sugar Works Limited and this
makes a sample size of 80 respondents as shown in table 1 below.
Table 1: Showing composition of the sample frame
Category Number of Sample size Percentage (%)
respondents
Administrators 20 10 12.5
Supervisors 30 20 25.0
staff in the export unit of sales 50 50 62.5
& marketing department
Total 100 80 100

3.4 Sampling technique

The sample was purposively selected based on convenience of the researcher in terms of
time allocation, funds available and other items The researcher relied on this sampling
techniques because it was inexpensive, easy and the subject are readily available.

xxviii
3.5 Source of Data
3.5.1 Primary Data
This source provided firsthand information which was original in nature from Kakira
Sugar Works Limited and was mainly obtained using questionnaires and filled forms.
3.5.2 Secondary data
The research reviewed literature which had already been collected by some other scholars
on the topic understudy. Here magazines, journals, textbooks and internet sources were
used.
3.6 Data collection methods
Some methods are more suitable than others to the different research methods (Yin,
2013). The researchers required knowing which information the research need before
selecting the data collecting method. The researcher selected questionnaire as the method
that provided the type of information that was critical to answer the research questions.
3.6.1 Questionnaires
Sekaran (2003) defines it as a pre-formulated written set of questions to which
respondents record their answers, usually within rather closely defined alternatives. The
researcher used questionnaires which contain closed ended questions where a five Likert
type of scale was used in rating, this helped in the reduction of subjectivity and also made
it possible to quantitatively analyze the data. Questionnaires were very suitable for the
target respondents on account of their high level of English literacy.

3.7 Validity and reliability of the instruments

3.7.1 Validity of the Research Instruments
According to O‘Leary (2009) validity is premised on the assumption that what is being
studied can be measured and captured. It is thus the extent to which a research instrument
is able to measure what was intended to measure. The researcher ensured that the items
are prepared according to the objectives of the study. Apart from undertaking an
extensive literature review to identify relevant content areas, the researcher in this case
sought for suggestions from educational experts, colleagues and supervisors to analyze
the validity of the instruments. The items in the questionnaires were availed to the
xxix
 supervisor to rate the ability of each item and its relevancy to the study. Validity test of
data collection instrument enable the study to ascertain whether the research instrument is
measuring the correct concept or something else (Kothari, 2004)

3.7.2 Reliability of the Instrument

Reliability of the instruments was assessed by checking the stability of the instrument by
conducting a pilot study on three groups in Kakira Sugar Works Limited. Split-Halves
method was employed as it is less costly in determining the reliability of the data
measuring instruments. Data sets were split randomly into two (the odd numbered items
to one half and even numbered items to the other half of the test) and a correlation taken
between the two halves. Cronbach Alpha Coefficient indicator was used to test internal
consistency of the items. In this case a score obtained from one item was correlated with
scores obtained from other items in the instrument. Cronbach Alpha Coefficient was then
be computed with the assistance of SPSS package. A reliability coefficient value of 0.701
was obtained for the research questionnaires and this value was deemed reliable as
supported by Kothari (2004).

3.8 Data Processing and analysis

Data from the field were sorted, edited and recorded in order to ensure accuracy and
completeness of the findings. Later on, the researcher analyzed the data by using
frequency distribution tables and percentages. The data collected was prepared or
processed for analysis and then later actually analyzed; the collected data (on SAQs) was
edited, categorized, coded and entered into computer using the Statistical Package for
Social Sciences (SPSS) for generation of summary frequency tables. Collected data using
quantitative questions was processed manually. The actual data analysis at univariate
level was based on relative frequencies or percentages from frequency tables and
descriptive statistics.

3.9 Limitations of the study

Time aspects

xxx
 The time allowed to the research to gather data was not enough considering the factor
that some respondents do not prioritize the study. The time required in order to have
gathered realistic information is not adequate.

Financial aspects
The financial resources were not sufficient to meet all the costs like computerizing the
research work, communication with the supervisor and the necessary movements when
gathering the required data.

Limited literature on the subject

The researcher found a problem of limited literature specific to the subject under study.
The avoidable data in books is old & out dated. Access to new material on internet is
costly at times not specific and or applicable since they are not designed locally.

3.10 Ethical consideration

Ethics concerns moral principles and how people should conduct themselves in social
affairs (Graham & Benett, 2005). The researcher thus endeavored to respect views of the
respondents and the study was on a voluntary basis. The researcher handled this through
presenting the data as confidential and did not disclose the name of the respondent, nor
the company’s information (Bryman & Bell, 2011). This could affect the credibility of
the thesis, but the researcher has clearly stated the dates of the email correspondence and
when questionnaires were answered.

xxxi
 CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF THE STUDY

FINDINGS
4.0 Introduction
This chapter lays down the analysis of findings and their interpretation from the primary
data. The study was intended to examine the relationship between export marketing
strategy and export performance at Kakira Sugar Works Limited. The findings below
were presented using frequency distribution tables and graphs. This chapter brings into
light the discoveries from the research questions.

4.1 Response rate

The study targeted a total of 80 respondents including; administrators, supeviors, and
staff in the export unit of sales and marketing department of Kakira Sugar Works
Limited from which all the 80 people responded and returned their questionnaires
contributing to 100% response rate. This response rate was excellent and
representative and conforms to Mugenda and Mugenda (1999) stipulation that a
response rate of 50% is adequate for analysis and reporting; a rate of 60% is good
and a response rate of 70% and over is excellent. This commendable response rate

xxxii
 was made a reality after the researcher made personal calls and visits to remind the
respondent to fill-in and return the questionnaires.

4.2 Demographic Characteristics

The study obtained information from individual characteristics of gender, age, academic
qualification and length in service of the respondents who participated in this study. The
obtained results were presented using a frequency table indicating frequency and
percentage values upon which interpretation was based as shown in below.

4.1.1. Respondents by gender

The study that was carried out involved both male and female respondents who were
selected at random to avoid gender bias.
Figure 2: Respondents by gender

Gender of respondents
No. of respondents Percentage (%)
100

80
75

60

25
20

Male Female Total

Source; Primary data (2020)

The findings form figure 2 above indicates that 75% of the respondents were male and
25% female. This indicates that there is a gender bias in the study. This might be due to
the reason could be that Kakira Sugar Works Limited recruits more men in exports unit
as compared to the female due to the nature of work which requires employees to

xxxiii
 frequently travel to foreign countries and men as best at frequent travels made during the
course of exporting.

4.1.2 Age group of respondents

Table 2: Age group of respondents

Age group (years) Frequency Percentage (%)

. 20-29 7 8.8
30-39 46 57.5
40-49 24 30.0
50-59 3 3.8
60 Above 0 0
Totals 80 100

Source; Primary data (2020)

The study indicates that most the staff of Kakira Sugar Works Limited is dominated by
the age group of people between 30-39 years constituting 57.5% of the respondents,
30.0% were between 40-49years, 8.8% were between 20-29 years and 3.8% were
between 50-59 years and none was above 60 years. This therefore implies that the
Exports work in Kakira Sugar Works Limited is being carried out mainly by youth who
very productive.

4.1.3: The Level of Education

The study found out that most export businesses are run by people whose education
qualification varies as shown in the table below;
Table 3: Level of education
Level Frequency Percentage (%)
Certificate 0 0
Diploma 8 10
Bachelors 70 87.5
Masters 2 2.5

xxxiv
 Others 0 0
Total 80 100
Source; Primary data (2020)
The findings indicate that 87.5%of the respondents had a bachelor’s level of education
while only 10% of them a diploma level education and only 2.5% had the masters level
of education. This therefore implies that the majority of the exporters who Kakira Sugar
Works Limited workers had a moderate level of education (bachelors level) and were
literate enough hence they gave accurate information about the study.

4.2 Components of export marketing strategy adopted by Kakira Sugar Works Limited
The respondents’ feedback on the Components of Export Marketing Strategy adopted by
Kakira Sugar Works Limited have been summarized and presented in tables illustrating
their respective frequencies and percentages as shown in the table below.
Table 4: showing the export marketing strategy adopted by Kakira Sugar Works
Limited
STATEMENT SD D NS A SA TOTAL
Product development Strategies
We offer a broad product line of exports f 0 10 5 25 40 80
% 0 20 6.5 31.3 50 100
We have products with a broad market f 0 12 10 23 25 80
appeal % 0 15 12. 28.7 31. 100
5 3
Our exports suit the foreign market f 0 10 0 50 20 80
% 0 20 0 62.5 25 100
We export unique products attributes f 68 8 4 0 0 80
% 85 10 5 0 0 100
Pricing Strategies
Our Pricing is a basis for competition f 0 0 0 20 60 80
% 0 0 0 25 75 100
Our prices are higher as compared to f 0 10 0 50 20 80
standard quality % 0 20 0 62.5 25 100
We have alternative price packages for our f 0 25 10 15 30 80
% 0 31.2 12. 18.7 37.5 100
exports
5
We offer products on credits to foreign f 78 2 0 0 0 80
xxxv
 customers % 97. 2.5 0 0 0 100
5
Promotion Strategies
We advertise our exports through various f 0 0 0 20 60 80
% 0 0 0 25 75 100
media
Our outdoor adverts in the foreign market f 0 0 10 20 50 80
% 0 0 12. 25 62. 100
are attractive
5 5
Our promotions are relative to the f 0 25 10 15 30 80
% 0 31.2 12. 18.7 37. 100
campaigns of competitors
5 5
Place Strategies
We have a reliable channel of f 0 25 10 15 30 80
% 0 31.2 12. 18.7 37. 100
distribution for our exports
5 5
Our depots in the foreign market are f 0 10 0 50 20 80
% 0 20 0 62.5 25 100
accessible to customers

Source; Primary data (2020)

Findings in table 4 on Product development Strategies used by Kakira Sugar Works

Limited shows that 50% strongly agreed and 31.3% agreed that Kakira Sugar Works
limited offers a broad product line of exports. This is followed by 20% who disagreed to
the statement and 6.5% who were not sure with the statement. This meant that the
organization exports different types of products to the foreign market.
While when respondents were asked if Kakira Sugar Works Limited has exports with a
broad market appeal most of the respondents representing 31.3% strongly agreed, 28.7%
agreed, 15% disagreed and only 12.5% were not sure with the statement. This also
signifies that Kakira Sugar Works Limited exports in the foreign market have a broad
market appeal.
However when respondents were asked if they Kakira Sugar Works Limited exports suit
the foreign market, the biggest percentage representing 62.5% agreed, 25% strongly
agreed to the statement and a smaller percentage 20% disagreed to the statement. This
meant that most of the exports of Kakira Sugar Works Limited were suitable for the
foreign market.

xxxvi
The study also sought to know if Kakira Sugar Works Limited exported products which
had unique product attributes Findings from table 4 above revealed that 85% of the
respondents strongly disagreed to the statement that while 10% disagreed and the
remaining 5% were not sure. This simply shows that Kakira Sugar Works Limited
exports are not unique from the local products. This deviates from the theories of Aaby
and Slater (2009) which state that, unique product attributes are very crucial in
determining export success.

Findings on the pricing strategies used by Kakira Sugar Works limited revealed that 75%
strongly agreed and 25% agreed to the statement that the organizations pricing is a basis
for competition. This means that Kakira Sugar Works Limited’s export prices are set in
relation to its competitors’ prices in the foreign market. However when respondents were
asked if Kakira Sugar Works Limited’s prices on exports are higher as compared to
standard quality, most of the respondent’s representing 62.5% agreed to the statement.
This is followed by 25% who strongly agreed and 20% who disagreed with the statement
that Kakira Sugar Works limited prices on exports are higher as compared to standard
quality. This means that marketing department of the organization had set Kakira Sugar
Works Limited prices on exports higher than those of the standard local products in the
local market.,
Further still findings in table 4 above reveal that most of the respondents representing
37.5% strongly agreed to the statement that Kakira Sugar Works Limited arranges
alternative price packages using tag price for its exports. This is followed by 31.2%
disagreed, 18.7% who agreed and lastly 12.5% were not sure with the statement. This
means some products exported to the foreign market have price alternatives while a
bigger number of those who disagreed mighty mean some have fixed prices. This finding
disagreed with Kirpalani and MacIntosh (2000) who that suggested that successful
exporters arrange alternative price packages using tag price, discount, and credit with the
effect of giving the foreign customer an attractive total deal.
Finally underprice strategy respondents were asked if Kakira Sugar Works Limited offers
products on credits to foreign, a biggest percentage of respondents representing 78%
strongly disagreed to the statement while the remaining smaller percentage of 2% also

xxxvii
disagreed to the same statement. This simply implies that Kakira Sugar Works Limited
does not offer products on credit in the foreign market.

Findings on promotional strategies used by Kakira Sugar Works limited revealed that
most of the respondents representing 75% strongly agreed and the remaining 25% also
agreed that Kakira Sugar Works Limited advertise its exports through various media.
Further still, when respondents were asked if Kakira Sugar Works Limited’s outdoor
adverts in the foreign market are attractive. Most of the respondents representing 62.5%
strongly agreed to the statement, 25% also agreed and only 12.5% were not sure with the
statement. The means the marketing department of the organization puts more emphasis
on creating attractive out adverts for outdoor adverts.
Table 4 shows that most of the respondents representing 37.5% strongly agreed to the
statement that Kakira Sugar Works Limited’s promotions are relative to the campaigns of
competitors. This is followed by 31.2% who disagreed to the statement, 18.7%z who
agreed, 12.5% who were not sure with the statement.

Last but not least, finding on place strategy used by Kakira Sugar Works Limited
revealed that most of the respondents representing 37.5% strongly agreed to the statement
that Kakira Sugar Works limited has a reliable channel of distribution for their exports.
This is followed by 31.2% who disagreed with the statement, 18.7% who agreed and
lastly 12.5% were not sure with the statement. This is an indicator of the availability of a
reliable channel of distribution for their exports in the foreign market.
The researcher also desired to know if depots Kakira Sugar Works limited was accessible
to customers, most of the respondents representing 62.5% agreed to the statement, 25%
strongly agreed and the remaining 20% disagreed. This means that there are many depots
in the foreign market are accessible to customers which are located many different
locations of the country.

xxxviii
4.3 Export Performance of Kakira Sugar Works Limited
The respondents’ feedback on export performance of Kakira Sugar Works Limited have
been summarized and presented in tables illustrating their respective frequencies valid
percentages as shown in the table below.

Table 5: Export Performance of Kakira Sugar Works Limited

STATEMENT SD D NS A SA TOTAL
Product Strategies

We offer a broad product line of exports f 0 25 10 15 30 80

% 0 31.2 12. 18.7 37.5 100
5
We have products with a broad market f 0 0 60 12 8 80
% 0 0 75 15 10 100
appeal

Our exports suit the foreign market f 0 12 10 23 25 80

% 0 15 12. 28.7 31.3 100
5
Pricing Strategies

Our Pricing is a basis for competition f 0 0 0 20 60 80

% 0 0 0 25 75 100
Our prices are higher as compared to f 20 50 10 0 0 80
standard quality % 25 62.5 12. 0 0 100
5
We have alternative price packages for our f 0 10 0 50 20 80
exports % 0 12.5 0 62.5 25 100

Promotion Strategies

We advertise our exports through various f 0 10 5 25 40 80

% 0 20 6.5 31.3 50 100
media

Our outdoor adverts in the foreign market f 0 0 0 20 80 80

are attractive % 0 0 0 25 75 100

xxxix
 Our promotions are relative to the f 0 10 0 50 20 80
campaigns of competitors % 0 20 0 62.5 25 100

The company employs Export intensity to f 0 0 0 0 80 80

measure export success the products % 0 0 0 0 100 100

Our company routinely assessed using f 0 0 60 12 8 80

% 0 0 75 15 10 100
measures such as export sales
Management makes export decisions that f 0 0 0 10 70 80
are guided by their subjective evaluations in % 0 0 0 12.5 87.5 100
export markets

Our company employs market f 0 10 10 20 40 80

% 0 12.5 12. 25 50 100
diversification in serving the foreign market.
5

Source; Primary data (2020)

In relation to findings revealed in table 5 above all the respondents 100% strongly agreed
to the statement that Kakira Sugar Works Limited employs export intensity to measure
export success the products. This simply means that company employs the export
intensity measure to estimate their firm's percentage of total sales attributable to foreign
sales hence a key determinant of export performance. This is in support of Maurel’s
(2009) argument that measuring export performance through export intensity cancels the
effect of firm size, thus facilitating comparison between companies of different sizes,
industries and countries.
Nonetheless, Das (2014) criticized the use of export intensity as a measure of export
performance. He argued that export intensity measures a firm's degree of
internationalization and not export performance. Therefore export intensity alone cannot
help to determine the level of export performance.

Findings in table 5 on Pricing strategies used by Kakira Sugar Works Limited shows that
50% strongly agreed and 75% agreed that Kakira Sugar Works limited offers a price

xl
strategy based on competition . This is followed by 25% who agreed to the statement this
meant that the organization’s pricing strategy of the is entirely profit driven i.e what are
the competitors prices in the same goods.

While when respondents were asked if Kakira Sugar Works Limited has alternative
pricing strategies to appeal to the market respondents representing 25% strongly agreed,
62.5% agreed, 12.5% disagreed with the statement. This also signifies that Kakira Sugar
Works Limited has alternative pricing strategies besides that which is profit driven to
promote its sales in the market..
But when respondents were asked if companies prices are higher as compared to standard
quality of products from Kakira Sugar Works Limited, the biggest percentage
representing 62.5% agreed, 25% strongly agreed to the statement and a smaller
percentage 12.5% disagreed to the statement. This meant that most of the exports of
Kakira Sugar Works Limited were not dependent upon the standard for its pricing.

Findings from Table 5 above still shows that majority of the respondents 75% were not
sure if Kakira Sugar Works Limited employs export performance assessments measures
such as export profitability, profit margin and export profit margin growth are often used
in performance measurement of export sales while as 15% agreed to the statement and a
smaller number representing 10% strongly agreed to the statement. The large number of
respondents who were not sure may be due to that fact that Kakira Sugar Works Limited
does not provide information related to their profitability. However this can also be
supported by the findings of Sausa (2014) who argued that argued, many companies often
never provide information related to their profitability. Moreover, majority of firms lack
the capacity to generate such information.

Findings from table 5 shows that 50% of the respondents strongly agreed to the statement
that Kakira Sugar Works Limited employs market diversification in serving the foreign
market, 25% of the respondents also agreed to the statement while 12.5% were not sure
and another 12.5% agree to the statement. This means that Kakira Sugar Works Limited
does not use multiple distribution channels for its products when exporting its products to

xli
 the foreign market. There for the company has to consider the use of multiple distribution
channels inorder for it to improve on its export performance.

Table 5 shows that most of the respondents representing 87.5% strongly agreed that the
top management makes export decisions that are guided by their subjective evaluations of
firm performance in export markets while 12.5% agree to the statement. This simply
means that the management of Kakira Sugar Works Limited is satisfied with the export
decisions made by the top managers in determining the export performance of the
company. This can also be seen from White’s (2008) argument that provides a defense
for use of management’s satisfaction with export performance. They contend that only a
firm's management alone knows the goals and expectations of the firm from exporting
activities.

4.4 The Relationship between Export Marketing Strategy and Export Performance at
Kakira Sugar Works Limited.

Table 6: Relationship between Export Marketing Strategy and Export Performance At

Kakira Sugar Works Limited

STATEMENT SD D NS A SA Total

Export marketing strategy

1 Foreign trade promotions have increased on the f 0 25 10 15 30 80

export performance.
% 0 31.2 12.5 18.7 37.5 100

2 Price adaptation in the foreign market has increased f 0 0 0 20 80 80

on our export performance
% 0 0 0 25 75 100

3 Foreign market advertising expenditures improves f 0 10 0 50 20 80

on export performance
% 0 20 0 62.5 25 100

xlii
4 Product adaptation in the Foreign market has f 0 25 10 15 30 80
increased on our export performance
% 0 31.2 12.5 18.7 37.5 100

5 Promotion adaptation in the Foreign market has f 10 12 10 23 25 80

increased on our export performance
% 12.5 15 12.5 28.5 31.5 100

6 Through price competiveness there increased levels f 10 20 15 10 25 80

of export performance.
% 12.5 25 18.5 12.5 31.5 100

7 Physical product demonstration practices have f 0 0 0 20 60 80

increased our export performance
% 0 0 0 25 75 100

8 Multiple distributional channels have increased on f 0 0 20 20 40 80

export performance
% 0 0 25 25 50 100

9 Marketing research utilization for product influence f 0 10 0 50 20 80

high level of export performance
% 0 20 0 62.5 25 100

10 Quick delivery and service has been important for f 0 0 0 10 70 80

our export success factors.
% 0 0 0 12.5 87.5 100

Source; Primary data (2020)

In relation to findings revealed in table 6 above all the respondents 75% strongly agreed
to the statement that Kakira Sugar Works Limited Price adaptation in the foreign market
has increased the export performance of the company measure export. This simply means
that company employs the export intensity measure to estimate their firm's percentage of
total sales attributable to foreign sales hence a key determinant of export performance.
This is in support of Stewart & McAuley,(2000), argument that price adaptation
increases export performance in many thus facilitating comparison between companies of
different sizes, industries and countries.

xliii
Findings from Table 6 above still shows that half of the respondents strongly agreed
50% were not sure if Kakira Sugar Works employs Limited Multiple distributional
channels and this has increased on export performance of the company employs export
performance assessments measures such as export profitability, profit margin and export
profit margin growth are often used in performance measurement of export sales while as
25% agreed to the statement and a smaller number representing 25% strongly agreed to
the statement. The large number of respondents who were not sure may be due to that
fact that Kakira Sugar Works Limited uses multiple distribution channels. However this
can also be supported by the findings of Tonesakulrungruang (2009), who argued that
argued, many distribution channels often provide information related to their profitability.
Moreover, majority of firms lack the capacity to generate such information.

Findings from table 6 shows that 87.5% of the respondents strongly agreed to the
statement that Kakira Sugar Works Limited Quick delivery and service has been
important for the export success factors of the company .employs market diversification
in serving the foreign market, 25% of the respondents also agreed to the statement while
12.5% were not sure and another 12.5% agree to the statement. This means that Kakira
Sugar Works Limited uses multiple distribution channels for its products when exporting
its products to the foreign market. There for the company has to consider the use of
multiple distribution channels in order for it to improve on its export performance.

Table 6 further shows that most of the respondents representing 87.5% strongly agreed
that the top management makes export decisions that are guided by their subjective
evaluations of firm performance in export markets while 12.5% agree to the statement.
This simply means that the management of Kakira Sugar Works Limited is decisive with
the export decisions made by the top managers in determining the export performance of
the company. This can also be seen from Zou & Stan, (1998), in their research about
determinants of export performance: A review of the empirical literature between 1987
and 1997. They contend that only a firm's management alone knows the goals and

xliv
expectations of the firm from exporting activities and hence should work towards the
better performance of the company.

Findings on promotional strategies used by Kakira Sugar Works limited revealed that
most of the respondents representing 75% strongly agreed and the remaining 25% also
agreed that Kakira Sugar Works Limited advertise its exports through various media.
Further still, when respondents were asked if Kakira Sugar Works Limited’s outdoor
adverts in the foreign market are attractive. Most of the respondents representing 62.5%
strongly agreed to the statement, 25% also agreed and only 12.5% were not sure with the
statement. The means the marketing department of the organization puts more emphasis
on creating attractive out adverts for outdoor adverts.

From Table 6 a good number of respondents 62.5% agreed that marketing research
utilization for product influence high level of export performance and 37.5 strongly
agreed to the statement that Kakira Sugar Works Limited’s marketing research utilization
influences high levels of export performance.

Table 7: Responses on the Relationship between export Marketing Strategy and

export performance at Kakira Sugar Works Limited

To determine the relationship between the export Marketing Strategy and export
performance at Kakira Sugar Works Limited, the researcher carried out Pearson
correlation test where findings generated by SPSS are presented in the table below;
Table 8:Relationship between export Marketing Strategy and export
performance
Correlations
Export Marketing Export Performance
Strategies
Export Marketing Pearson Correlation 1 .892**
Sig. (2-tailed) .000
Strategies N 80 80

xlv
 Pearson Correlation .892** 1
Export Performance Sig. (2-tailed) .000
N 80 80
**. Correlation is significant at the 0.01 level (2-tailed).
Source; Primary data (2020)

Results from the Pearson correlation test to examine the magnitude of the relationship
between export Marketing Strategy and export performance at Kakira Sugar Works
Limited revealed a very strong positive and significant relationship. This is represented
by Pearson correlation Coefficient of r = 0.892** tested at 0.01 level of significance.
However, it infers that all the export Marketing strategies studied do have a positive and
significant influence on the export performance of Kakira Sugar Works Limited.

CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
This chapter gives a summary on findings, conclusion and recommendations in line with
the research objectives.
The major purpose of the study was to examine the relationship between export
Marketing Strategy and export performance where the study adopted three research
objectives that include; to identify the components of export Marketing Strategy adopted
by Kakira Sugar Works Limited, to examine the export performance of Kakira Sugar
Works Limited and to establish the relationship between Export Marketing Strategy and
Export Performance at Kakira Sugar Works Limited.

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5.1.1 Components of export Marketing Strategy adopted by Kakira Sugar Works
Limited
In finding out the components of Marketing Strategy the researcher revealed that
uniqueness of product attributes and programmes does not affect product adaptation into
foreign markets. However this was found to deviate from the theories of Aaby and Slater
(2009) which state that, unique product attributes and programmes for adapting products
into local markets are very crucial in determining export success.

In reference to the price strategy the study discovered that Kakira Sugar Works Limited
employs alternative price packages like use of tag price, discount and credit. This is also
in support in the findings made by Kirpalani and MacIntosh (2000) that suggested that
successful exporters arrange alternative price packages using tag price, discount, and
credit with the effect of giving the foreign customer an attractive total deal.

The study further discussed the promotion strategy employed by Kakira Sugar Works
Limited and findings showed that promotions employed by Kakira Sugar Works Limited
on export market is not very satisfactory in determining export performance hence
Kakira Sugar Works Limited needs to focus more on its promotions activities on export
market. This can also be supported the assumption proposed by Zou et al. (2008) who
presented an argument that the promotional activities need to be tied to the product
attribute, and external marketing environment in order to improve the export performance
of a firm.

Findings on perception of management on distribution channel is an important export

success determinant revealed that Kakira Sugar Works Limited has implemented proper
distribution channel in determining the export performance of their products. According
to Zou et al. (2003), strong distribution capability helps secure such close cooperation
from export distributors hence an important export marketing strategy in improving
export performance.

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5.1.2 Level of export performance by Kakira Sugar Works Limited
In order to test the level of export performance at Kakira Sugar Works Limited the
researcher employed the determinants of export performance which include Export
Intensity, Profitability, Number of, Markets / Diversification, Managerial Satisfaction
upon which the questions were asked and answered by respondents.

In relation to Export Intensity, findings showed that Kakira Sugar Works Limited
employs the export intensity measure to estimate their firm's percentage of total sales
attributable to foreign sales hence a key determinant of export performance. This is in
support of Maurel’s (2009) argument that measuring export performance through export
intensity cancels the effect of firm size, thus facilitating comparison between companies
of different sizes, industries and countries.

Findings on Profitability showed that the large number of respondents was not sure may
be due to that fact that Kakira Sugar Works Limited does not provide information related
to their profitability. However this was also seen in the findings of Sausa (2014) who
argued that argued, many companies often never provide information related to their
profitability. Moreover, majority of firms lack the capacity to generate such information.

Findings on Number of, Markets / Diversification revealed the Kakira Sugar Works
Limited does not use multiple distribution channels of its products when exporting its
products to the foreign market. There for the company has to consider the use of multiple
distribution channels in order for it to improve on its export performance. This is backed
by Thirkell’s (2008), argument that states that the number of countries served by a firm
indicates its success in reaching the international community.

Results in line with Managerial Satisfaction showed that the management of Kakira
Sugar Works Limited is satisfied with the export decisions made by the top managers in
determining the export performance of the company. This can also be seen from White’s
(2008) argument that provides a defense for use of management’s satisfaction with export
performance. They contend that only a firm's management alone knows the goals and
expectations of the firm from exporting activities.

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5.1.3 The relationship between export Marketing Strategy and export performance at
Kakira Sugar Works Limited
The most important result of the present study was a negative weak relationship between
export Marketing Strategy and export performance at Kakira Sugar Works Limited r = -
0.025 which implies that the relationship between export Marketing Strategy and export
performance is insignificant. This was also in support of the findings of Orcas and Julian
(2003) and Aziza and Samsinar (2008) also did not find a significant relationship
between export marketing strategy and export performance of Malaysian wooden
furniture exporters. According to the authors, this phenomenon is attributable to the
Malaysian wooden furniture exporters’ failure to adapt their export marketing strategy.

5.2 Conclusion
A Pearson correlation analysis was performed to test the relationship that exist between
export Marketing Strategy and export performance and negative relation represented by
the r co-efficient (r = - 0.025) was fond indication slight negative relationship. This is
possibly because of different factors like the trade policies, brand loyalty, pricing
approaches and market research that also have an impact on export performance. This
cannot rule away the fact the exporting strategies is a key fundamental determinant of
export performance because the analysis was based on just one organization and a small
number (80 respondents) from one organization.

However the researcher was accomplished successfully and the researcher was able to
learn a lot from it.

5.1.2 Recommendations
It was discovered that that the promotion strategies employed by Kakira Sugar Works
Limited on export market is not very satisfactory in determining export performance
therefore its recommended that Kakira Sugar Works Limited needs to focus more on its
promotions activities on export market in order to improve on their export performance.

In finding the relationship between export Marketing Strategy and export performance
findings revealed that there is a number of different factors like the trade policies, brand
loyalty, pricing approaches and market research that also have an impact on export
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 performance. So it is recommended that Kakira Sugar Works Limited should focus more
on factors.

The findings also showed that Kakira Sugar Works Limited exports were not unique from
the local products. Therefore the researcher recommends that should introduce unique
products on the foreign market so as to improve export performance of Kakira Sugar
Works Limited.

Findings in chapter four also found out the some of the respondents disagreed that the
management of Kakira Sugar Works Limited employs promotions in export market as an
important determinant of export performance so there is need for promotional activities
tied to the product attribute, and external marketing environment in order to improve the
export performance of a firm.

5.4 Areas for further research.

During the course of the study, the following areas were identified for further research;
i. Actors contributing to successful export performance of regional and metropolitan
exporters
ii. Marketing capability and export performance of manufacturing industries.
iii. A research on trade facilitation and export performance should also be carried in
order to find the relationship between the two variables.

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APPENDIX I: QUESTIONNAIRE GUIDE

Topic: “The Impact of export Marketing Strategy and export performance at

Kakira Sugar Limited”
I am Atuhaire Murari Josh, a student of Makerere University Business School pursuing a
Bachelor’s Degree of International Business. As part of the university program, am carrying out
research in the above topic, am therefore kindly requesting for your assistance in answering this
questionnaire. Your response will be only for academic purposes and not for any other purpose.
Section A: Bio Data (Please Tick As Appropriate)
1. Gender
a) Male [ ]
b) Female [ ]

2. Age of Respondent
a) 20-29 [ ]
b) 30-39 [ ]
c) 40-49 [ ]
d) 50-59 [ ]

3. Highest level of education

a) Certificate [ ]
b) Diploma [ ]
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 c) Degree [ ]
d) Masters [ ]
e) Others Specify.............................

4. Work experience
a) 20-29 [ ]
b) 30-39 [ ]
c) 40-49 [ ]
d) 50-59 [ ]
Section B: Export Marketing Strategy Adopted By Kakira Sugar Works Limited
SD D NS A SA

A Product Strategies

We offer a broad product line of exports

We have products with a broad market appeal

Our exports suit the foreign market

We export unique products attributes

B Pricing Strategies

Our Pricing is a basis for competition

Our prices are higher as compared to standard quality

We have alternative price packages for our exports

We offer products on credits to foreign customers

C Promotion Strategies

We advertise our exports through various media

Our outdoor adverts in the foreign market are attractive

Our promotions are relative to the campaigns of competitors

D Place Strategies

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 We have a reliable channel of distribution for our exports

Our depots in the foreign market are accessible to customers

Section C: Level of Export Performance of Kakira Sugar Works Limited

SD D NS A SA

Export Intensity

Our export sales have increased.

We have a high export sales return on investment

Profitability

We have a high export profit margin

Our net profit on export has been increasing

The export profit share has grown

Number of Markets / Diversification

Our rate of new market entry is high

We have a huge Market diversification

We have a big market share for our exports

Managerial Satisfaction

We have registered increase in customer base in the last three years

We have retained our customers

The perception of management on distribution channel is positive

Section D: Relationships between Export Marketing Strategy and Export Performance

SD D NS A SA

1 Foreign trade promotions have increased on the export performance of

Kakira Sugar Works Limited

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2 Price adaptation in the foreign market has increased on our export
performance

3 Foreign market advertising expenditures improves on export

performance

4 product adaptation in the Foreign market has increased on our export

performance
5 Promotion adaptation in the Foreign market has increased on our
export performance
6 Through price competiveness there increased levels of export
performance.

7 Physical product demonstration practices have increased our export

performance

8 Multiple distributional channels have increased on export performance

9 marketing research utilization for product influence high level of export

performance

10 Quick delivery and service has been important for our export success
factors.

Appendix 2: Morgan Table

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