Effect of Market Development Strategy on Performance in Sugar Industry in Kenya

There is undeniable interest in the adoption of marketing strategy in almost all sectors of economies to counter growing local and global competition. This study investigates the performance implications of using majorly two market strategy approaches; developing new market segments and extending geographically. Specifically, the study uses a model in which market development strategy indicators are regressed on performance measures. The relationship between marketing development strategy and firm performance and given mixed outcomes with developing new market segments being found to have influence on sales volume and total turnover though not statistically significant while extensions into new geographical areas having influence in sales volume with statistically significant results. Based on the outcome both extending to new regions and developing new market segments does not result to increased profitability but increased market share which would eventually positively affect profitability. Rebranding, promotions, different quantity packaging enables accessing new segments of the market while opening outlets or agencies could boost extending geographically for sugar companies. This study contributes significantly to the current marketing strategy literature by examining how the two aspects of marketing strategies relates different performance measures in the context of sugar industry.