Marks and Spencer’s Potential Entry to Kenyan Market

Marks and Spencer’s Potential Entry to Kenyan Market
Name
Institution
Course
Professor
Due Date
Marks and Spencer’s Potential Entry to Kenyan Market
Marks and Spencer, a British multinational retailer, is considering entering the Kenyan market to expand its global reach. With over 130 years of experience in the retail industry, Marks and Spencer is well-known for its high-quality products and commitment to sustainability (Marks and Spencer, 2022). Kenya, located in East Africa, is a rapidly growing market with a population of over 50 million people, making it an attractive destination for international retailers. However, entering a new market comes with significant challenges, including cultural differences, regulatory hurdles, and competition from local retailers. This essay will analyse the external environmental factors affecting the Kenyan market and carry out a segmentation, targeting, and positioning analysis to determine how Marks and Spencer can successfully enter and grow in the Kenyan market. Finally, this essay will provide recommendations for designing an effective marketing mix that will enable Marks and Spencer to sustain a competitive advantage in the Kenyan market.
Organisation Overview
Marks and Spencer (M&S) are a UK-based multinational retailer that has been in operation since 1884 (Marks and Spencer, 2022). M&S offers a wide range of products, including clothing, home products, and food. The company has a strong reputation for quality and sustainability and operates in over 50 countries worldwide. The company markets its various products through an established network of 1487 stores and 98 websites (Marks and Spencer, 2022). The company employs 65,000 people in its various support centres, stores, and warehouses, who play a key role in enabling the company to serve more than 30 million customers every year (Marks and Spencer, 2022).
M&S has experienced a financial challenge decline in its financial performance in recent years due to the pandemic. However, the company improved its performance in the financial year 2020/2021 reporting group revenues of £10.9 billion, enabling the company to post a before-tax profit of £391.7 million translating to a basic earning of 15.7 p for every share (Marks and Spencer, 2022). The earning was a 6.9 increase in revenues compared to the previous year and a 482.9 percent increase in the profit before tax.
In terms of strengths, M&S has a strong brand reputation and a loyal customer base. The company's commitment to sustainability and ethical sourcing practices has also resonated with customers. M&S has also invested in digital transformation and omnichannel capabilities, which have enabled the company to adapt to changing consumer behaviour and preferences. On the other hand, M&S has struggled to compete with fast-fashion retailers, particularly in the clothing segment (Marks and Spencer, 2022). The company's product range has also been criticized for being outdated and lacking in innovation. M&S has also faced challenges in expanding its international presence, with some overseas ventures not performing as well as expected. In summary, while M&S has a strong brand reputation and a commitment to...