An investigation into, and justification of, the marketing strategy adopted by Equity bank for its growth in the Kenyan market by reference to the work of P. Kotler
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
My choosen topic is on the way Equity Bank Kenya limited has focused it energies and resources to increase sales and sustainable competitive advantage using various marketing strategy.Accordding to Kotler (2002)a competitive advantage can be achieved by offering the consumer a greater value than the competitors,such as by offering lower prices
The banking sector in Kenya faced two major crises in the mid 1980 and the early 1990s.these was due to was due to poor management and underperfomance of loans.This was a clear indication of financial crisis and loss of public confidence in the financial sector.With that in mind the banking sector was privatised in 1995 lifting the exchange controls.These changes improved thesupervision of the banking industry and at the same time encouraging self -regulation .Kamau Kabuch (2002 p22) it was very important to privatise the financial sector to make it more dynamic and increase competion of the other four major bank .These changes in the kenyan banking system demand the adoption of efficient and effective marketing strategy
1.1.1 Equity Bank
Equity bank was started in 1984 as a building society .The society had accumulated losses of Ksh 33 Million (USD 500,00) and a liquidity of 5.8% (coetzee et al; 2002).Today Equity bank is one of the highest commercial bank in Kenya which evolved from a small mortgage building society with Ksh 19 billion of Equity and over 4.1 milliom customers.Equity Bank marketing startegy forms an important component of the overall of the organizations strategy,which include product development ,marketing allocation of resources and future prospectAccording to East Africa Business council journal (2009),Equity Bank has now the all inclusive Nairobi Stock Exchange public listed commercial bank.
1.2 Research Questions
This study poses some questions tha can help to achieve its objective while trying to identify the importance of marketing in the banking industries as well as its effects ;
What is the purpose of the marketing strategies in the banking industry.
What are the benefits that the banking industry can gain while using marketing strategy.
1.3 Aims of the study
This study is aiming at identifying the marketing strategies behind the rapid growth of Equity bank in Kenya while refering to the work of P. Kotler.
1.4 Objectives of the Study
The academic objective of this study is to gain more knowledge on the importance of marketing strategy in a banking industry.
My Personal objective of carrying this study is to pass my MBA , and also lto learn and understand how to undertake a business research.
Stake holder objective will be to help the management of Equity Bank to improve the way they operate.The management of Equity Bank might not have time to carry out this study and hence they can apply some of the recommedation on this study to improve their business operation.
1.5 Research Relevance
A study of this kind is expected to make practical contributions to bank services marketing.This study provides basis for closer scrutiny of the applications of various aspect of strategic marketing in existence.Answers could then be sought regarding strategic marketing and their importance.
CHAPTER TWO: LITERATURE REVIEW
Banks today are operating in a very competitive and rapidly changing enviroment.In this kind of enviroment scenario, a strategic approach to business development is important for the survival of the banking institution and to take up coming up challenges.
Kotler (2000) observes that firms can choose the preferred cause of action from three industry independent generic strategies.Succesful implementation requires the organization to commit resources ,motivate staff and communicate the strategy and the reasoning behind it.The implementation might not succeed if the stratergy is misunderstood or if lower level managers resists its implementation because they do not understand why the particular strategy was selected.The implementation of the strategy must be monitored and adjusments made as needed.Selznick (1957) paved the Way for SWOT analysis when he emphasized the importance of connecting with the firm’s internal factors with external enviromental circumstances.Today the strengths and weakness of the firm are assessed in light of the opportunities and threats from the business enviroment.
Kottler (2002) suggested that adding value is the central purpose of any business acvtivity he built his argument on Hamel and Prahalad ‘s concept of core competence.Internal and external enviromental forces are currently shaping marketing practice.The marketing function manage s and maintain a good exchange relationships with major interest groups, while trying to achieve competitive advantage. Marketing strategy’s act as a link between a firm and its customer,competitors and other stakeholders. For any business which is aiming at profit maximisation, they need to apply the right marketing strategies.
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design
Research has been known as a fundamental part in academics. The Oxford Concise Dictionary defines research as an endeavour to discover new or collate old facts etc through the scientific study of a subject or through a course of critical investigation.
According to Leady (1989) research methodology provides an operational frame work in which facts are placed so that they would communicate meanings clearly.
Research is conducted when there is a question or problem which requires resolution. This problem is subject to rigorous scientific scrutiny otherwise the knowledge of such subject remains little more than a guess.
3.2 Research Approach
The research proposes the use of case study approach. The case study approach gives a consistent and convincing evidence for the research process as well as presenting findings which result from the research. The idea is to collect series of evidence from the management using semi structured interviews. In this research, the case study I will use is Equity Bank Kenya Ltd.
3.3 Research Method
The choice of research methodology is often dependent on the researcher’s philosophical assumptions. (Gill and Johnson 2002:162)This research proposes the use of two types of data in obtaining information: The primary and secondary data. The primary data will be obtained through the use of questionnaires, interviews and observation while secondary data will be collected by the review of relevant literatures by the use of academic journals, relevant textbooks, and history of the bank, commentaries, and letters as explained by Williams (2001:230).
3.4 Data Collection
The study population for this research will be the Branch managers of Equity bank in coast region.Those involved in marketing will be given open ended questionners . Samples of 100 staff from all the levels of the organisation will be selected from the study population. In order to ensure that a representative sample has been achieved, I will use the normal distribution curve to determine the normality of the distribution of the sample from the population.
The primary and secondary data will be obtained as follows:
Gathering of information from interviewing the Marketing managers, Interviews is estimated to last for 20 minutes. A list of questions will be ready in advance to make sure important areas of information are covered in the conversation.
Questionnaires will be given to relevant categories of people such as the management and staff of Equity Bank of Kenya Ltd. Issues raised at the interview will be addressed and clarified using the questionnaire. The questionnaire will also be used to gather responses from management and the system to determine increase in performance and output .
3.5 Data Analysis
Data analysis will begin by checking the questionnaires for accuracy and correctness then Descriptive statistics such as tables and graphs shall be employed to analyze the data obtained.Factor analysis will later be used to identify the marketing strategies adopted by Equity bank to enhance growth in Kenya market.
3.6 Sampling and Sampling procedure
The sample population will be selected using expert sampling.This will be used to select two respondents from the bank top management with expertise on the bank’s marketing strategy.The study will also benefit from information provided by bank employee respondents who will be put into four groups.
3.7 Ethical Issues
The management of Equity bank might not be willing to provide some confidential information.The information will not be passed on to any other paarty and will be used for academic purpose only
According to Kerlinger (1986) he argues that validity is the extent to which an instrument measures what it purpots to measure according to the researchers subjective assessment. Therefore, a questionnaire is valid when it actually measures the intended properties. To enhance content validity, the questionnaires shall be subjected to my (supervisors) for comments before use.
Reliability refers to the accuracy of research instruments and the extent to which a tool gives consistent results within a range of setting (Kombo & Tromp, 2006). In this study, reliability will be measured through the pilot of the research instruments.
Its my intention to further develop my knowledge about this topic, and therefore I hope the committee will approve it. Thereafter Recommendations will be presented to the management of Equity Bank on the importance of using marketing strategy for sustainable growth.
5.0 TIMEFRAME OF WORK
|Month||What is to be done|
Search for appropriate topic
Case study Identification
|July 2010||Drawing up a proposal for approval|
|August 2010||Data collection|
Finalize project write –up
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