Market Penetration Strategies and Market Performance of Small and Medium-Tiered Deposit-Taking Saccos in Kenya

Abstract

Purpose: To explore the effect of market penetration strategies on the market performance of small and medium-tiered deposit-taking SACCOs in Kenya Methodology: This proposed study utilized the positivist research philosophy and adopted a descriptive research design. A census of all 141 small and medium deposit-taking-SACCOS was conducted. Data was collected using questionnaires which were physically or electronically administered to the CEOs or their assistants who were the respondents in this study. Data analysis utilized descriptive and inferential statistics which were used to deduce the nature and strength of the relationship between variables. The inferential analysis yielded correlation and regression outputs which are best for determining relationships and prediction among variables. Key correlation and regression analysis techniques such as the coefficient of determination (r2

) were utilized. The

analysed data was presented using tables, charts and graphs. Findings: The findings confirmed that market penetration strategies have a

positive and significant effect on the market performance of small and medium- tiered deposit-taking SACCOs in Kenya (β=0.490, p=0.000). This implies that

changes in 1 unit of the aspects related to market penetration strategies lead to a change in the market performance of small and medium-tiered deposit-taking SACCOs in Kenya by 0.490 units. Hence the rejection of the null hypothesis that market penetration strategies are not statistically significant to the market performance of small and medium-tiered deposit-taking SACCOs in Kenya. Unique contribution to theory, policy and practice: From study results when market penetration strategies such as service, brand, pricing and promotion differentiation are effectively induced by small and medium-tiered DT-SACCOs, the resultant effect is growth in sales revenue and market share, an increase in the number of new customers growth, service delivery excellence as well as

growth in the number of innovations. Furthermore, small and medium DT- SACCOs are better engrained in the market, making them suitable to serve

customers’ needs and attain a better position in the market when compared to other competitors. The study thus concluded that relationship between market penetration strategies and market performance is statistically significant, however in spite of the effect being statistically significant, study also found out that given a mean score of 3.59 and 3.62 respectively, brand differentiation and service differentiation strategies did not effectively boost market performance. The study thus recommends that small and medium Deposit taking SACCOs