International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue XII, December 2019 | ISSN 2454–6186

Influence of Market Penetration Strategy on the Performance of Telkom Kenya Limited in Nairobi City County

Jackson Luvusi¹, Dr. Murigi Elishiba Muthoni^2
1,2Department of Business Management, School of Business, Kenyatta University, Kenya

Abstract: The environmental conditions of many companies have changed rapidly. This resulted to serious competition among telecommunication companies in Kenya, which caused Telkom Kenya Limited to seek for effective marketing expansion strategies that could differentiate itself from others in order to enhance its performance. Therefore, this study aimed at investigating the influence of market penetration strategy on the performance of Telkom Kenya Limited in Nairobi City County. The study adopted a descriptive research design. The selected target population was Telkom Kenya Limited in Nairobi Region. The total population was 75 respondents comprising of 5 marketing managers and 70 support staff. This study carried out a census of 75 respondents. Primary data was collected using questionnaires comprising of both structured and unstructured questions. Questionnaires were piloted to 10 respondents who were not included in the final study to assess the validity and reliability of the instruments. Validity was assessed using content validity and reliability was tested using Cronbach Alpha test. Quantitative data was analyzed using descriptive statistics such as mean and standard deviation and presented using tables, figures and charts. Inferential statistics were analysed using correlation analysis and multiple regression analysis. The study examined that market penetration strategy had a significant influence on the performance of Telkom Kenya Limited. The study concluded that Telkom Kenya takes advantage of low prices to increase product demand and increase market share through market penetration strategy. The study recommended that for effective implementation of market penetration strategy, Telkom Kenya should keep on adjusting the price to increase sales as lowering prices is an effective tactic to attract potential customers.

Keywords: Market Penetration Strategy, Organizational Performance