Marketing Capabilities and Key Account Management Strategies of Dairy Processors in Kenya

Abstract

Intense competition has grown in the dairy sector in the recent decade and companies are struggling to remain competitive. Great focus has now shifted to maintaining customers that are of strategic importance to individual companies. This study aimed at establishing the impact of marketing capabilities on key account management strategies of dairy processors in Kenya underpinned by dynamic capabilities theory and relational view of strategy. The target population of the study was the 97 dairy companies registered under Kenya Dairy Board. A descriptive cross-sectional survey design was used and employed census strategy to collect the data using a structured questionnaire. Product, pricing, distribution, marketing communication, relationship marketing management and innovation capabilities were tested as independent variables against organization-wide, operational, procedural, people related and target key account management strategies as dependent variables. Frequency distribution, descriptive statistics, correlation and multiple regression analysis were used to analyze the data and establish the relationships. The research findings suggested that the top ranking marketing capabilities associated with the dairy processors were those of relationship management with a mean score of 4.007. The second and third most important capabilities were innovation and pricing with mean scores of 3.68 and 3.662 respectively while operational and target key account management strategies were the highest regarded with a mean score of 3.24. The overall research findings concluded that marketing capabilities have a positive statistical insignificant influence on key account management strategies of dairy processors in Kenya. Companies should give investments attention to the top ranked capabilities such as relationship management and innovation capabilities that are considered essential for competitive advantage. Since relationship management capabilities were highly regarded and that KAM is their offshoot, these organizations should also prioritize investing in key accounts as these have been proven to offer strategic value. They should as well ensure different forms of key account management strategies are properly aligned to achieve a synergetic common goal. Future research can employ other types of capabilities such as dynamic capabilities and inside out capabilities to see if they will arrive at similar results. Future research can also use a case study that will do deep organizational analysis to arrive at more logical conclusions.