Bottom of the Pyramid Marketing Strategies and Performance of Insurance Companies in Kenya

Abstract

The aim of the study was to establish the bottom of the pyramid marketing strategies and performance of insurance companies in Kenya. The specific objectives were to establish bottom of the pyramid marketing strategies adopted by insurance firms in Kenya, to establish the relationship between bottom of the pyramid marketing strategies and performance of insurance firms in Kenya. The study used cross sectional descriptive research design to determine relationship between variables of bottom of the pyramid marketing strategies and performance of insurance companies. Target population of interest in the study comprised of all the 55 insurance companies licensed to offer insurance services in Kenya. The study used primary data which was collected from the respondents using research instruments. The data was on BOP marketing strategies and performance of insurance companies in Kenya. Inferential statistics were used to analyze data collected from the insurance companies. Mean scores and frequencies used were descriptive statistics while multiple regression was used to establish relationship between dependent and independent variables. Two regressions were used to test independent variables influence on non-financial and financial performance. From the findings the study established that micro-insurance product for BOP is offered after a thorough market research to establish customers’ needs. Further the study found that micro-insurance products offered by the organization are lowly priced to ensure affordability at BOP. The study found that customers increase in numbers for the organization affected non-financial performance. The study further found that the organization growth aspect that increased non-financial performance was increase in number of branches at BOP. The study further concluded that the distribution channels for micro-insurance products are through institutions which host group structures. Based on the regression analysis there were positive beta coefficients with all study variables, customer satisfaction, organizational growth, market share, and innovations. In that vein the study concluded that any change made is expected to positively impact on non-financial effectiveness and efficiencies. The study recommends that for Insurance Company to serve Bottom of the Pyramid customers, a competitive marketplace, promotion, product, market penetration and development, pricing and personnel strategies must be adopted and implemented effectively. This would enable the firm to reflects how consumers perceive the product’s/service’s and organization’s performance on specific attributes relative to that of the competitors.