Strategic Marketing Practices and Performance of Firms in the Beauty and Cosmetics Industry in Nairobi, Kenya

Abstract

This study investigates the influence of strategic marketing practices on the performance of beauty and cosmetics firms in Nairobi, Kenya. The beauty and cosmetics industry in Nairobi has been experiencing rapid growth, making it imperative to understand the role of marketing strategies in enhancing firm performance. The study was anchored on resource-based view and social capital theory. Using stratified sampling, data was collected from 264 beauty and cosmetics firms within the industry through structured surveys and analyzed using descriptive statistics and regression models. The findings reveal a strong positive relationship between strategic marketing practices and firm performance at a R-square value of 0.819 suggests that approximately 81.9% of firm success is due to strategic marketing activities. Specifically, personal selling had a standardized beta coefficient of 0.181 and significance of p= 0.011 which is less than 0.05 indicating that personal selling has a significant influence on performance of the firms. The standardized beta coefficient for Online Sales and Branding was 0.034 and significance of p=0.016 which is less than 0.05 indicating significant influence on performance of the firms. The standardized beta coefficient for marketing and promotions was 0.066 and significance of p= 0.034 which is less than 0.05 suggesting that an increase in marketing and promotions efforts is associated with increase in the expected performance. The standardized beta coefficient for digital marketing and innovation was 0.188 and significance of p= 0.016 which is less than 0.05 indicating positive influence on firm’s performance. Conclusively, digital marketing innovations was the most significant marketing strategy adopted. Firms that embraced digital marketing innovations and personal selling tended to outperform their counterparts. Online sales and branding, while important, showed a relatively weaker association with performance. Marketing and promotions were found to be critical in enhancing performance, albeit with some variations in emphasis on specific practices within the sector. The study highlights the need for beauty and cosmetics firms in Nairobi to prioritize strategic marketing practices to remain competitive and achieve sustained growth. Recommendations include a greater emphasis on personal selling and digital marketing innovations, as well as streamlining and enhancing marketing and promotional efforts. Policymakers and industry stakeholders should consider fostering an environment conducive to marketing innovation and providing support for training and development in these areas. Despite its limitations, this research contributes to the understanding of marketing's pivotal role in the success of beauty and cosmetics firms in Nairobi, offering valuable insights for practitioners, policymakers and future researchers.