Article

Progressive Composite and Price-based marketing impact on Safaricom Internet Data segment performance

Abstract

This study examined the impact of Safaricom Plc’s promotion techniques on driving the company’s internet data dominance in Kenya. The study used secondary data from Safaricom Plc financial reports from 2014 through 2024. The study hypothesized that both price-based and non-price marketing initiatives drove internet consumption at 95% CI. A case study research design was adopted. A positive and strong association between the non-price and progressive composite marketing and the key performance indicators in the internet data segment. Bivariate regression analyses established that progressive composite data promotion predicted average monthly data usage by Safaricom customers [R2=0.9395: [β=0.54, SE=0.04, p< .005: F[1,10]= 155.35, p<0.05], internet data total revenue [R2=0.9395 : β=8.5, SE=0.65, p< .005: F[1,10]= 173.46, p<0.05],  and average monthly active data subscription rate [R2=0.9421: β=3.43, SE=0.27, p< .005: F[1,10]= 162.59 p<0.05].At the same time,  data pricing per MB as a promotional strategy explained the average monthly active data subscription rate [R2=0.9422 : β=0.748, SE=0.069, p< .005: F [1,10] = 118.47, p<0.05], the  total revenue gained from internet data sales [R2=0.8241 : β=11.04, SE=1.61, p< .005: F [1,10] = 46.84 p<0.05],  monthly active subscription rate [R2=0.9781: β=4.76, SE=3.88, p< .005; F [1,10] = 150.86, p<0.05].. These findings underscore the effectiveness of Safaricom Plc’s promotional and pricing strategies in enhancing market penetration and revenue growth in a saturated oligopolistic telecommunication industry where it is a leader.

References

Ajayi, V. O. (2023). A review on primary sources of data and secondary sources of data. Available at SSRN 5378785.

Chang, P. P., & Castillo, J.(n.d) Shaping Market Dynamics: The Role of Competition Policy in Fostering Contestability and Technological Adoption in the Mobile Telecommunications Sector in Middle-Income Countries.

Chesula, O. W., & Kiriinya, S. N. (2018). Competitiveness in the telecommunication sector in Kenya using Porters five forces model. International Journal of Research in Finance and Marketing (IJRFM), 8(7), 1-10.

Competition authority of Kenya. (2025). The Kenya information and communications (fair competition and equal treatment) regulations, 2025. https://ict.go.ke/sites/default/files/2025-08/29-07-25%20Fair%20Competition%20Regulations%202025%20Final.pdf

Coyle, D., & Li, W. (2021). The data economy: Market size and global trade. Available at SSRN 3973028.

Erbil, K. (2022). Penetration Pricing Strategy and Customer Retention–An Analysis. Journal of Positive School Psychology http://journalppw. com, 6(5), 7058-7072.

Hollweck, T. & Robert K. Yin.( 2014). Case Study Research Design and Methods . Canadian Journal of Program Evaluation, 30(1), 108-110.

Mwaniki, S. W., & Anene, E. (2023). Competitive strategies and performance of firms in the telecommunication industry in Kenya. International Academic Journal of Economics and Finance, 3(10), 471-525.

Mwanzia, V. (2024). Strategic options and firm performance of the telecommunications industry in Kenya (Doctoral dissertation).

Ngure, E. W. (2024). Strategies Employed by Airtel Networks Kenya for Customer Retention (Doctoral dissertation, University of Nairobi).

Nolan,S.(2025). Kenya leads the world in mobile money penetration. Telcomagazine. https://telcomagazine.com/news/kenya-leads-the-world-in-mobile-money-penetration

Nuthu, I. W. (2015). Competitive Advantage and Market Share of Telecommunication Industry in Kenya (Doctoral dissertation, Kabarak University).

Onuoha, R. (2023). Regulation of complex adaptive digital systems: optimizing competition and consumer welfare outcomes in Nigeria's converging telecommunications market.

Otieno, B. O., & Mwale, H. (2025). Safaricom Fibre Price Wars With Both Local and International Competitors Like Starlink and Airtel and Its Effects on Telecommunication Industry in Kenya.

Rainy, J. (2025). Data-driven marketing and digital campaign optimization in emerging markets. Journal of Digital Business Strategy, 12(2), 45–59.

Safaricom Plc. (2025). Annual Report and Financial Statement. https://www.safaricom.co.ke/images/Downloads/Annual-2025-Reporrt.pdf

Schachter, K. (2019). The digitalization of development: Understanding the role of technology and innovation in development through a case study of kenya and m-pesa.

Subramanian, K. R. (2017). Role of incentives in shaping consumer mindset. International Journal of Trend in Research and Development, 4(1), 28-32.

Viertamo, V. (2023). Building Brand Equity through the Brand Resonance Model.