Influence of Marketing Turnaround Strategies on Performance of Uchumi Supermarket in Nairobi City County, Kenya

Abstract

Many retail outlets in Kenya are facing declining performance due to myriad of challenges from changing business environment. One of the major variables threatening their performance is marketing aspects. The organizations work hard in their distress for survival. To effect this, they initiate and implement marketing turnaround strategies to attain recovery and sustainable performance. This article is an effort to study and establish the relationship between marketing turnaround strategies and organizational performance. Specific marketing turnaround strategies studied included aggressive marketing stance of the company’s products, development of new products, marketing of new products, marketing of the company’s history, adoption of relationship marketing strategy, adoption of multichannel marketing strategies, market acquisition strategies through promotions, market retention strategies through promotions, marketing of the company values such as home-grown, and marketing of the company’s service elements. The objective of the study was the relationship of marketing turnaround strategies on performance of Uchumi supermarket. The study used a casual research design. The investigation was carried out using open ended, closed ended questionnaires and interviews. The theories underpinning the study were Resource Based View, Dynamic Capabilities Theory, Open Systems Theory, and competitive theory. The target population is 450 Uchumi supermarket staff members respectively. The sample size of the study was 82 employees. The validity of the questionnaire was examined using the face and content validity while the reliability was examined using the Cronbach alpha coefficient. Data analysis was carried out using descriptive statistics (means, frequency distribution and standard deviations) and inferential statistics (linear correlation and multiple linear regressions). The null hypothesis was rejected since F (10, 58) = 17.413, p<0.05. Since p value is 0.000, it implied that there is a 0.000% likelihood or probability that the model gave a wrong prediction and therefore the model was found to a good fit of the data. Therefore, the alternative hypothesis that marketing strategies have significant influence on organizational performance of Uchumi supermarket was adopted.