| dc.description.abstract | The supermarkets retail sector in Kenya are operating in environment that is potentially
vulnerable to competitive actions and so they need effective strategies to determine the way in
which they intend to compete in the market place. Further, new entrants in the retail sector are
emerging every year with different innovative strategies that are pushing the market leaders out
of their market share. This study examined the influence of innovative strategies on performance
of large supermarket chains in Kenya. The study specific objectives sought to examine the
influence of product differentiation strategy, product diversification strategy, pricing strategy and
product promotion strategy on performance of supermarket chains. The theories that informed
the study are theory of disruptive innovation and diffusion of innovation theory. The study
employed a descriptive research design. The target population was the 9 major supermarkets in
Nairobi County as they have chains and thus enabled the study to make significant comparisons
across the chains. The respondents included management, supervisors and staff. Primary data
was collected by means of a structured questionnaire. Diagnostic tests included multi collinearity,
heteroscedasticity and normality test. The study conducted a regression analysis to determine the
relationship between the independent and dependent variables. The test of significance was
tested at 0.05 significance level. The regression of coefficients results show that product
differentiation strategy and performance of supermarket chains in Nairobi County, Kenya is
positively and significantly related (β=0.106, p=0.022). Product promotion strategy and
performance of supermarket chains in Nairobi county, Kenya were positively and significantly
related (β= 0.096, p=0.027). Pricing strategy and performance of supermarket chains in Nairobi
county, Kenya were positively and significantly related (β= 0.010, p=0.000). Product
diversification and performance of supermarket chains in Nairobi county, Kenya were positive
and significant (β =0.224, p=0.830). The study rejected the hypothesis on product differentiation
strategy, product promotion strategy and pricing strategy on the performance of supermarket
chains. However the hypothesis on product diversification strategy was not rejected. The study
concluded that product differentiation strategy, product promotion strategy and pricing strategy
were the key strategies that largely affected the performance of supermarket chains. The study
recommend on that the supermarkets should highly adopt in depth product promotion strategies
by adoption of mass product promotion with the use of technology adoption, advertising, online
presence, publicity. In differentiation strategies, firms should ensure they use innovation and
creativity to redesign their products to create a market barrier. This includes aligning of product
repackaging, renaming resizing and product extensions. In pricing strategies, supermarkets with
the CBD should aim at specialization order to increase their profit margins. The supermarkets
should also use product pricing to ensure they tap the market hence withstanding competition
and having a high market survival rate. | en_US |
