Response Strategies Adopted by Marketing Firms of the Liquefied Petroleum Gas Market
Modern day organizations operate in an ever changing operating environment that necessitates organizational strategic change. The ability of firms to readily adopt to changes in the environment enables it to properly respond to both opportunities and threats which can have serious effects on business operations. The objective of this study was to determine the response strategies adopted by marketing firms of the liquefied petroleum gas market in Kenya. The study used a descriptive cross sectional survey design. Primary data was collected using a questionnaire. Data was analyzed using mean, standard deviation, frequency distributions and percentages. In regards to differentiation strategies, the study found that the marketing firms have branded all LPG products and that the firms have distinguished standards of health and safety in all our premises. On Cost Leadership Strategies the study found that Companies have broken bulk of its LPG sales volumes thus companies have reduced its operating costs drastically to keep the cost of LPG low. In regards to market strategies adopted it was found that companies have invested in exclusive distribution network. The study established that companies are involved in upstream operations and downstream operations. The respondents established that on the effects of response strategies a moderate extent differentiation strategy had effect on competitiveness. Strategic alliance strategy had a moderate effect on competiveness; the respondents agreed that Focus market strategy adopted has moderate effect on competitiveness. The study concluded that market differentiation strategies have increased the firms competitive advantage other products and ensured that safety standards of health and safety in all their premises. Differentiation strategies have generally improved the competiveness among marketing firms. From the study the marketing firms have broken bulk of LPG sales volumes with and cost leadership strategy affected the competitiveness to some extent. The study recommends that LPG marketing firms should focus more on innovation, quality of products, as well as superior customer service in order to compete in the market. A marketing strategy that focuses on building better customer relationships would provide a better avenue for the firms to compete. The study recommends improving administrative capacity and undertaking continuous marketing targeting various market segments can help in the successful penetration of the liquefied petroleum gas market products.
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