| dc.description.abstract | The purpose of this study was to determine how the Ansoff intensive growth
strategies of market penetration, market development and product development, have
been applied by Total Kenya Limited. The objectives of this research were to
determine the extent to which Total Kenya Limited has pursued intensive growth
strategies, to establish factors that have influenced the choice of such strategies and to
determine the influence of these strategies on the firm's market share.
This study was modeled on a case study design. The organisation of interest was
Total Kenya Limited. The research instrument was an interview guide consisting of
open ended questions. The guides were administered to 5 managers in Total Kenya
Limited who were deliberately chosen to ensure that only those at the strategy
development and implementation level were selected as they had the information
required. The primary data collected was analysed using content analysis.
With regard to market penetration, key strategies used were encouraging frequent
purchases employing price reductions/discounts, value added services, promotions to
encourage switching, merchandising and customer care and developing new usage for
existing products. Factors that stimulated the firm to employ market penetration
strategies included increased competition, higher sales targets, increased market share,
decreasing fuel margins and changing customer needs.
Key market development strategies involved operating view distribution channels and
developing new customer segments through targeting non-users using sales
promotions, product innovations targeting new needs and usage demonstrations.
Factors that motivated the use of market development strategies included new
customer needs and requirements, the need to achieve economies of scale and lower
unit costs as well as the drive for increased market share. Product development
strategies entailed improved quality offerings, innovative packaging and branding.
Factors that motivated the need to differentiate included the competition, customer
needs, market segmentation, the risk of losing business to alternative solutions, health,
safety, quality and environmental considerations. Others include technology and
government regulations.
The study recommended that Total Kenya make intensive but strategic use of the
three Ansoff growth opportunities. It was possible for the firm to increase its market
presence in Kenya through market penetration that may entail increasing market
coverage in growth areas locally and in the region. This would reduce the cost of fuel
in these areas and increase access. Market development can also be intensified
regionally, given the many opportunities present, especially with oil discoveries in
Uganda and Southern Sudan. Opportunities for product development do exist as Total
could borrow ideas from its parent company and have the advantage of low
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