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Strategic Marketing Practices Adopted by General Motors' East Africa Limited

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Strategic Marketing Practices Adopted by General Motors' East Africa Limited STRATEGIC MARKETING PRACTICES ADOPTED BY GENERAL MOTORS EAST AFRICA LIMITED CHRISTINE A. AMBETSA A MANAGEMENT RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION UNIVERSITY OF NAIROBI October 2009 DECLARATION This is my original work and it has not been presented in any other university or institution for examination. Full name: CHRISTINE A. AMBETSA REG NO: D61/P/8533/2005 D at,..0S.ta This project has been submitted for examination with my approval as university supervisor. Signatured Date..!?...//.. .v.1 DR. JUSTUS M. MUNYOKI DEDICATION I dedicate this work to my loving parents, Mr. Livingstone Ambetsa and Mrs. Beverly Ambetsa, for always believing in me, for seeing me through my education and for constantly encouraging me to strive for excellence. I love you both and may God Almighty continue to shower you with everlasting blessings. ACKNOWLEDGMENTS I would like to thank Dr. Munyoki, my project supervisor for his direction, assistance, guidance and critic. His recommendations and suggestions have been invaluable. Thank you! Special gratitude goes to my parents, Mr. and Mrs. Ambetsa for their support, understanding and encouragement. Thank you! Lastly, I would like to express my heartfelt gratitude to the entire staff of General Motors East Africa Limited for their immense support and their invaluable input and cooperation especially during the data collection exercise. Many thanks and may God Almighty bless you all. TABLE OF CONTENTS Declaration...........................................................................................................................ii Dedication...........................................................................................................................iii Acknowledgments...............................................................................................................iv Table of contents.................................................................................................................. v List of tables.......................................................................................................................vii ABSTRACT......................................................................................................................viii CHAPTER 1: INTRODUCTION..................................................................................... 1 1.1 Background................................................................................................................ 1 1.1.1 Strategic Marketing.............................................................................................2 1.1.2 Strategic Marketing Planning.............................................................................3 1.1.3 The Automotive Industry in Kenya....................................................................4 1.1.4 General Motors East Africa Limited...................................................................4 1.2 Statement of the problem...........................................................................................6 1.3 Objectives of the study...............................................................................................7 1.4 Importance of the study.............................................................................................7 1.5 Chapter Summary......................................................................................................8 CHAPTER 2: LITERATURE REVIEW.........................................................................9 2.1 Introduction................................................................................................................ 9 2.3 Strategic Marketing.................................................................................................. 10 2.3.1 Characteristics of Strategic Marketing..............................................................11 2.3.2 Components of the Strategic Marketing Plan...................................................11 2.3.3 The Strategic Marketing Planning Process.......................................................12 2.3.4 The Strategic Marketing Planning Framework.................................................12 2.3.5 Benefiting From Strategic Marketing Planning................................................13 2.4 Chapter Summary.................................................................................................... 13 CHAPTER 3: RESEARCH METHODOLOGY..........................................................14 3.1 Introduction.............................................................................................................. 14 3.2 Research Design....................................................................................................... 14 3.3 Data Collection........................................................................................................ 14 3.4 Data Analysis........................................................................................................... 14 v CHAPTER 4: DATA ANALYSIS AND INTERPRETATION................................. 16 4.1 Introduction............................................................................................................. 16 4.2 Analysis of General Information........................................................................... 16 4.3 Chapter Summary................................................................................................... 24 CHAPTER 5: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 25 5.1 Introduction............................................................................................................. 25 5.2 Summary of the Findings........................................................................................ 25 5.3 Conclusions............................................................................................................. 26 5.4 Recommendations................................................................................................... 26 5.5 Recommendations for Further Studies................................................................... 27 REFERENCES................................................................................................................ 28 APPENDIX...................................................................................................................... 32 Appendix I: Questionnaire............................................................................................ 32 vi LIST OF TABLES Table 4.1: Gender of the Respondents........................................................................... 16 Table 4.2: Age of the respondents.................................................................................. 16 Table 4.3: Level of Education........................................................................................ 17 Table 4.4: Environmental Factors Considered in Marketing Plan Preparation...............18 Table 4.5: Marketing Objectives Considered in Marketing Plan Preparation.................19 Table 4.6: Statements Related to the Products.............................................................. 21 Table 4.7: Product Strategy Pursued..............................................................................22 Table 4.8: Pricing Objective Adopted........................................................................... 23 Table 4.9: Relative Roles of Product Features................................................................24 Table 4.10: Participation in Product Improvement or Product Development............... 24 vii ABSTRACT This study set out to identify the marketing strategies adopted by General Motors East Africa Limited. Its main objectives were to determine the strategic marketing practices employed and to examine the factors affecting the implementation of strategic marketing practices employed by the company. The study adopted a case study design which was most appropriate in the investigation of strategic marketing practices adopted by the company. Respondents of the study comprised the company’s marketing staff, who provided information on the strategic marketing practices. Data collection was done through self-administered questionnaires with closed and open-ended questions. The data collected was analyzed using descriptive statistics. This involved the use of frequency tables, percentages, rank ordering, and means scores. Frequency tables were used for grouping data obtained to facilitate working out percentages in order to partly address the first objective of the study. The study found that scanning of the environment involving the demand for products, availability of suppliers, changes in consumer tastes, number of employees and market size was always undertaken before marketing plans were prepared. The marketing objectives were all considered very important to the company. Regular review of the marketing plan was always undertaken. The company studies emerging trends to develop new brands, where appropriate, they always withdraw poorly performing brands from the market. It is recommended that the management formulate a coordinated strategic plan to encompass business and marketing plans for the development of the company objectives. Coordination between the departments is vital and General Motors East Africa needs to set priorities, goals and objectives attainable within a set time frame. viii CHAPTER 1: INTRODUCTION 1.1 Background Competition in most global
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