A Survey of marketing planning practices in the Kenyan motor vehicle industry

Abstract

The increase in the number of dealers in the motor vehicle market has led to more competition, increased choice for consumers, lower prices, and lower margins in the industry. In such a crowded market environment, marketing planning is a key way in which the formal motor vehicle companies can adequately identify and analyze their competitiveness. It was however not known if the incumbent companies in the industry do marketing planning to enhance their competitiveness in the Kenyan market. This study had three objectives. The first objective was to establish if companies in motor vehicle industry in Kenya prepare marketing plans to develop and sustain competitive advantage. The second objective was to determine the steps followed in preparing the marketing plans. The third objective was to establish the challenges encountered in preparing the marketing plans among motor vehicle companies in the industry. In undertaking the study, all the motor vehicle companies operating in Kenya and which were members of the Kenya Motor Industry Association (KMIA) were considered. Data collection was done by use of questionnaires reinforced by personal visits and telephone calls. A total of 12 questionnaires were distributed to the 12 companies. Out of these, 8 responded by ~ompleting and returning the questionnaires. One did not respond. Research findings revealed that all the motor vehicle companies prepare marketing plans. It also established that the motor vehicle companies follow the stages in the marketing planning process. However, the variables in the marketing planning process are used to varying extents. Motor vehicle companies face various challenges when preparing their marketing plans. According to this research, the majority of the motor vehicle companies cited dynamism in the motor vehicle market as the major challenge they face when preparing marketing plans. Arising from the findings, it was suggested that a similar study should be conducted to establish whether the second hand car dealers prepare marketing plans and the process they follow in the preparation of the plans