The study aimed to ascertain the effect of niche marketing strategy on firm performance of Bamburi Special Products Limited in Kenya. The specific objectives of the study are to establish the effects of market segmentation, product differentiation and market positioning on firm performance of Bamburi Special Products Limited in Kenya. The study benefits policy makers focused on developing policies for the concrete manufacturing sector in Kenya, scholars and management practitioners. The relevant theories to study were Resource Based View, Porter’s Generic Competitive Strategies, and Configuration Theory. An empirical review reveals evidence that there is a positive relationship between niche marketing strategies and firm performance, but that there is also limited research available on niche marketing strategy as a whole. The study employed descriptive research design based on case study approach; while the population of the study was decision making management teams at the company and the parent company Bamburi Cement Limited. It made use of both primary and secondary data. A semi-structured questionnaire was applied to collect primary data, with a pilot test done to augment the research instrument’s validity, also increasing the research reliability. Collected data was analyzed using descriptive methods including standard deviation and means, and presented using graphs and tables. A simple regression analysis was done to show the relationship between the dependent and independent variables. The study found that niche marketing strategies (product differentiation, market segmentation and market positioning) significantly and influenced performance. The study further established that product differentiation had the greatest influence on performance followed by market segmentation and lastly market positioning. In Kenya, there are no comprehensive policies on construction; the study therefore recommends the government of Kenya to develop comprehensive construction industry policies that will guard the industry from challenges like low completion rate of construction projects, low access to affordable project financing, lengthy procurement procedures and inadequate harmony in policies, laws and regulations. Cement and concrete manufacturers in Kenya face challenges principal among them being high power costs, in addition to the market driven challenges, therefore the government should provide these companies with a favorable environment that will favor their operations and growth for instance providing them with affordable power supply.

Keyword : Business Strategies, Competitive Advantage, Firm Performance, Market segmentation, Market Positioning, Niche Marketing, Niche Market, Niche Marketing Strategy, Product differentiation, Strategic Management.

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