Marketing Strategies, Industry Competition and Export Performance of Fresh Produce Firms in Kenya

Abstract

Despite the increasing number of firms pursuing the export market, little is known about the moderating role of industry competition in the marketing strategy and export performance link. The majority of the studies have focused solely on the direct relationships between two variables at a time and overlooked potential moderating factors that could influence export performance. To address this gap in the literature, this study solicited responses from 100 fresh produce export firms. Primary data was collected using a structured questionnaire. The overall objective of the study was to determine the influence of industry competition on the relationship between marketing strategies and the export performance of fresh produce firms in Kenya. The specific objectives were to establish the influence of product strategies on export performance of fresh produce firms; assess the effect of price strategies on export performance of fresh produce firms; examine the effect of promotion strategies on export performance of fresh produce firms; examine the influence of place strategies on export performance and to determine the moderating role of industry competition on the relationship between marketing strategies and export performance of fresh produce firms. The study outcome revealed that industry competition influenced export performance through marketing strategies. Findings from the study build on the industrial organization economic theory which postulates that the long-term profitability and attractiveness of an industry can be explained by the strength of all five forces together. Likewise, empirical findings recommend that managers should identify opportunities and threats within the industry and subsequently use this information to formulate marketing strategies.