An investigation of the causes of sales decline at Kingstons Limited during 2010-2011.
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Kingstons Limited was facing a downfall in its organizational performance during the 2010-2011 fiscal periods and was characterized by continued sales decline which also led to the decrease in profits. This research study sought to find out the causes of sales decline, strategies to address the problem, policies put in place in order to improve on sales, the effects of the decline on the organization and recommend ways that can be adopted to improve the sales performance of the company. The research was carried out in Harare on Kingstons Kwame Nkrumah branch. Case study method was applied making use of questionnaires and interviews as research instruments. A total of sixty five questionnaires were distributed and fifty four were returned. The sample composed of five managerial employees and sixty customers of the organization. Data collected was sorted using SPSS and the research findings were presented using pie charts, graphs and tables. The research found that external factors such as competition and economic recession are some of the major causes of sales decline experienced. Furthermore, the results indicate that increasing product availability and responding quickly to the changes in the market environment as well as competitive pricing increases sales performance. Results also revealed that exercising customer service has the ability to build customer satisfaction and loyalty which have a long term positive effect on sales performance. The study therefore recommends that management should undertake a regular environmental assessment to indentify any changes in the environment so as to device strategies that enhances company competitiveness and improving revenues. Moreover, the research suggests that customer and supplier relationships must be managed properly in order to benefit and enjoy the consequences of good relationship management.
- Department of Marketing