An Analysis of Marketing Strategies in The Mobile Service Sector in Kenya: A Case Study of Safaricom Limited

Abstract

The mobile service providers play a very significant role (globally) of providing communication services to users of wireless devices (handheld computers and telephones) through radio frequency signals. Some of these services are short messages, money transfer services, and internet services. The success of these companies in offering these services come from a strong customer focus and a heavy commitment to marketing. These companies lay much emphasis on sensing and understanding the customers’ needs thus they come up with effective marketing strategies that will help them to meet their needs in well defined target markets.The purpose of this study was to analyse the marketing strategies in the mobile service sector in Kenya (a case study of Safaricom Limited). The objectives that guided this study were to identify the main marketing strategies employed by Safaricom, to determine the marketing strategies that Safaricom would employ to cope in the competitive environment, and to identify the major challenges in implementation of marketing strategies and how to overcome them.This study used descriptive research design and purposive sampling method. The information for this study was gathered through the questionnaires which were administered to the employees in the marketing department through the drop and pick later method. The researcher employed descriptive methods of data analysis (bar charts and pie charts). These methods were used to show the distribution of responses in terms of frequency and percentage. The other method of data analysis was the statistical package of social analysis. This method was used to code and analyse the questionnaires to give information in form of frequency distribution tables and pie charts.The study revealed that Safaricom employed various strategies among them market expansion strategy, concentric diversification, product innovation and capacity expansion. The study also revealed that Safaricom faced various challenges among them lack of immediate support of funds in regard to implementation of marketing programs, poor communication of marketing plans and poor monitoring of strategies. The study further revealed that the company had been affected by changes in the marketing environment. The respondents claimed that the best strategies for coping with these changes would be maintaining leadership in development of new products and services and protecting or defending the existing customers through a combination of strategies. These include maintaining the tariffs, market expansion strategy, pre emptive strategy and market based strategies (effective distribution system and product differentiation).