Relationship Between Strategic Marketing Innovations and the Performance of Kenya Airways

Abstract

Stiff competition existing in the aviation sector requires firms to develop and implement appropriate business strategies not only to overcome such competition but to also remain at the top of the market. Kenya Airways, despite being the largest airline in Kenya has been experiencing losses and recording poor financial performance for years. The purpose of the study was to assess the relationship between strategic marketing innovations and the performance of Kenya Airways. The study was guided by the following specific objectives, to:- determine the relationship between strategic partnerships and alliances and the performance of Kenya Airways, find out the relationship between technological integration and the performance of Kenya Airways, assess the relationship between branding and the performance of Kenya Airways and assess the moderating role of aviation regulations on the relationship between strategic marketing innovations and the performance of Kenya Airways. This study was done using a descriptive research design and guided by the theory of competitive advantage, resource-based view, diffusion theory and Schumpeter’s Theory of Innovation. The target population included managers and staff working at Kenya Airways. The specific sample size was 142 people, which included staff working in marketing and strategic operations in the organization managers. Data for this study was collected using self-constructed structured questionnaires. Pretesting was done at Jambo Jet with a sample of 14 (10% of the sample size). Content validity was ascertained using supervisors and experts who reviewed the research instrument. Reliability was assessed using Cronbach’s alpha with the questionnaire reporting Cronbach’s alpha of r = 0.939, consistent with the r = 0.7 threshold suggested by Taber (2018). Data was analyzed using both descriptive and inferential statistics. Descriptive statistics used included means, standard deviations, percentages and frequencies. Inferential statistics were done using regression analysis and correlation analysis. The study found out that strategic partnerships and significantly predicted its performance in the market, F (1, 129) = 101.943, p<0.01. The performance of Kenya Airways was significantly dependent on the strategic partnerships and alliances implemented by the organization, (β = 1.328, p = 0.000. Technological integration significantly predicted performance, F (1, 129) = 242.080, p = 0.000. The performance of Kenya Airways was significantly dependent on the technological integration, (β = 1.720, p = 0.000). The branding approaches significantly predicted the organization’s performance, F (1, 129) = 168.824, p = 0.000. The performance of Kenya Airways was significantly dependent on the branding approaches and strategies, (β = 1.648, p = 0.000). On average, the participants strongly agreed that adhering to aviation regulations is crucial for Kenya Airways to improve the performance in the sector especially through effective implementation of marketing innovation strategies captured in the study. The study recommended that Kenya Airways should actively seek for more opportunities to form strategic partnerships with other airlines, airports, and service providers. Also, Kenya Airways should consider investing in modern technologies that can be applied in the aviation sector such as data analytics, artificial intelligence, and cloud computing. In addition, Kenya Airways should invest more in building a strong and consistent brand identity. Lastly, Kenya Airways should strive to follow and comply with all relevant aviation regulations whether domestic or international.