IMPACT OF MARKETING STRATEGIES ON PROFITABILITY OF MANUFACTURING COMPANIES IN RWANDA. CASE STUDY: BRALIRWA LTD (2020-2023)

Abstract

In terms of the present research work, the researcher wanted to show the role of marketing strategies to the financial performance of manufacturing companies in Rwanda and I took Bralirwa Ltd as a case study within 2021-2023 time frames. The specific objectives were to analyze the effectiveness of marketing strategies applied in BRALIRWA LTD and to assess the contribution of marketing strategies on the financial profitability of Bralirwa LTD. The reasons of having effective marketing strategies of Bralirwa Ltd are to attract new customers, market dominance, retain existing customers and make product awareness. The respondents have strong agreed that the types of marketing strategies applied by Bralirwa Ltd are Service delivery/ process strategy and Promotion strategy. The respondents have agreed that the types of marketing strategies applied by Bralirwa Ltd are Personal or people strategy, Distribution strategy, Product strategy, Pricing strategy and Physical strategy. The results show that during the financial year 2020, 2021 and 2022 as well as 2023, each 100Rwf invested in Bralirwa assets generated the profit of 7.7Rwf, 13.7Rwf, 14.4 and 15.4Rwf. This shows that the return on assets had a good trend during the period under study. The results show that for 100Rwf invested in Bralirwa by shareholders generated returns of 21.1Rwf in 2020 which increased at 34.3Rwf in the year 2021and 40.1 in the year 2022 and also they increased again in 2023 up to 46.1Rwf. In other words, Bralirwa was maximizing shareholder’s benefits. Return on equity is an important measure of the profitability of an institution. Net profit margin was 0.84 in 2020, 0.141 in 2021, 0.143 in 2022 and 0.161 in 2023. Based on these findings, it was established that net profit margin generated as compared to the operating expenses incurred was 8.4% in 2020, 14.1% in 2021, 14.3% in 2022 and 16.1% in 2023. This indicates that Bralirwa generated 8.4Rwf of profit from 100 Rwf of sales in 2020 and 14.1Rwf of profit from 100Rwf of sales in 2021, 14.3Rwf of profit from 100 Rwf of sales in 2022 while it generated 16.1Rwf of profit from 100Rwf of sales in 2023. The respondents have strong agreed that marketing strategies help to increase the profits of the organization and marketing strategies help in increasing sales volume and the market share of the company, marketing strategies enhance the purchase of organizational products by the consumer and financial performance enhance the organization financial performance