Competitive Marketing Strategies Adopted by Animal Feeds Manufacturing Firms in Kiambu County, Kenya, to Improve Operational Performance

Abstract

The primary objective of marketing is to manage profitable relationships between a firm and its customers. A firm gains a competitive advantage through adoption of competitive strategies which enable it improve its operational excellence, liquidity and net revenue. The objective of this study was to identify the competitive marketing strategies adopted by animal feeds manufacturing firms in Kiambu County, Kenya, to improve operational performance. The study is supported by the dynamic capabilities view and the relationship marketing theory. Descriptive research design survey was undertaken. All the animal feeds manufacturing firms registered with the Association of Kenya Feeds Manufacturers operating in Kiambu County and which number 23 were approached out of which 18 responded. The study utilized primary data collected using structured questionnaires. Data was analyzed using quantitative statistical methods. Multiple regression model was applied to establish existence of a relationship between the variables. Based on the evidence presented, this study concludes that most of the firms involved had adopted focus strategy to a larger extent compared to cost leadership and differentiation strategies; firms constantly reviewed and adapted to market changes, continually gathered purchaser and competitor intelligence and regularly updated their operations to match the market dynamics. Firms involved had also adopted cost leadership strategy to a large extent than differentiation strategy but to a smaller extent compared to focus (niche) strategy; adoption of cost leadership strategy had a significant positive impact on operational performance of firms since it created market barriers which protected the firm from competition by business rivals. The study further concludes that firms involved had adopted differentiation study but to a lesser extent than focus (niche) strategy and cost leadership strategy; adoption of market differentiation strategy positively impacted the operational performance of firms involved in the manufacture of animal feeds in Kiambu County. The study observed that most of the firms implemented their own product costing systems and continually communicated their products’ unique characteristics to customers thus creating a niche market. This study recommends continuous adoption of competitive marketing strategies to enhance operational performance. In addition, firms need to fully understand the market in order to guarantee quality product delivery guided by the need to meet customer dynamism.