The paper “ The Effective Adoption of the 7Ps in the Service Industry as Major Success Determinant of the Kenya Railway” is an engrossing variant of case study on marketing. The stiff competition that has been experienced in the business arena has forced many companies to diversify their product portfolio with the aim of increasing their sales as well as profits. Some of the companies have ventured into service marketing both in the local and international markets. Despite the intensive marketing strategies that have been emulated by service providing companies, a number of challenges have been experienced leading to the closure of some companies or reduced profits.
This paper will critically analyze the services provided by Kenya Railways Corporation (KR), a Kenyan based company that is engaged in the provision of railway transport services across East Africa. ProductKenya Railways was established in 1977. The company's major service is the provision of transport services across East Africa countries which include Kenya, Uganda, and Tanzania. According to Kotler et al (2006), a product can be tangible or intangible. In this regard, Kenya Railways aims at providing transport services to the majority of companies that are established in the three countries.
Being a landlocked country, Uganda utilizes the services of the company to transport its imports from the port of Mombasa which is located on the Kenyan coast. In addition, the company is highly beneficial to most of the Kenyans who use it as a means of transport to their working places. Despite the importance of the company as a major means of transporting imports and exports from Kenya, various challenges are facing the firm.
One of the major challenges which Kenya Railways is facing is product management and product innovation Kotler et al (2006) stipulates that sales do not own customer relationship but it is the company that posses the customer relationship which it utilizes to meet its objectives. These objectives include improved public relations and product innovation in order to meet customer needs and customer satisfaction. Due to a lack of adequate resources, KR Company has not realized the importance of innovation as a way of remaining competitive in the transport industry. Some of the engines that were used in 1901 when the railway arrived in Lake Victoria are still in use.
With the improved technology in the transport industry, the company has failed to realize the importance of product innovation as speculated by Simon (1982). By the year 2006, most of the railway lines were in disrepair. The low speed of the train, especially from Nairobi to Kisumu, has forced some of the local companies to emulate other means of transport including trucks. On the other hand, Makoto and Costas (2007) argue that product innovation entails either improvement of the existing product or developing a new product.
The company, therefore, needs to improve the existing railway lines so as to create a positive customer-product relationship that is vital for the profitability of the companyPriceThe effective pricing of products is essential especially in recent times when the economic downturn affected most sectors. In its efforts to attract more passengers, Kenya Railways has maintained a low pricing policy. This has resulted in an increase in usage of the company services especially for the working individuals who report to Nairobi, the capital city for their duties.
The table below indicates the prices offered by the company from Nairobi to Mombasa.