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Marks & Spencer ii
Executive Summary
Marketing plan of any organization is considered as one of the most significant tool in
surviving in a market place which is full of competition. Marks and Spencer can be regarded
as the most appropriate example in this regard. The company worth $13 billion currently
plans to expand its product line into the market of Australia, which is most likely to benefit
the organization as a whole. In addition to this, the marketing strategies would evolve from
its traditional planning. Therefore, it is essential for the company to evaluate its potential in
the current market to analyze its consumer base and effectiveness. Currently, the company is
leading the UK market with its homewear, clothing and food retail; and comprise of about
1382 stores across the globe. Since the day it marked its presence in the business place, it has
primarily focused on the style and quality of its product, and has heavily invested in the
innovation of product it offers in all its departments. Marks and Spencer operates in a market
that is highly competitive and have external factors that are influential in that regard.
However, the company has not only sustained its business, but have also projected growth
increased profits and sales. Since the company offers a diversified range of products,
therefore gaining consumer satisfaction is an on-going task. Moreover, the current positioning
of the company is strong and distinctive, and displays potential to achieve success in a long
run. The expansion of this business in other countries and re-evaluation of its current
Table of Contents
Executive Summary...................................................................................................................ii
Task 1.........................................................................................................................................1
Introduction................................................................................................................................1
Situation Analysis.......................................................................................................................1
External Analysis....................................................................................................................1
Internal Analysis.....................................................................................................................4
SWOT Analysis......................................................................................................................6
Objectives...................................................................................................................................6
Strategy......................................................................................................................................7
ANSOFF Matrix.....................................................................................................................8
Tactics/Action.............................................................................................................................9
Budget......................................................................................................................................10
Control......................................................................................................................................10
Conclusion................................................................................................................................11
Task 2.......................................................................................................................................12
Communication Plan................................................................................................................12
References................................................................................................................................14
Appendices...............................................................................................................................18
Marks & Spencer 1
Task 1
Introduction
Initially Marks and Spenser PLC came into existence in 1884 by Michael Marks;
however the brand was reinvented after ten years as Marks & Spencer (M&S). It is now
considered as one of the leading retail store of the world, with more than 1,382 stores across
the world, while 459 of them are based in Middle East and Eurasia. It offers luxury food,
home products and clothing through both, online and physical stores (Marks & Spencer,
2015). M&S is amongst the leading brands in UK for its lingerie, menswear and womenwear.
It is spread across 59 territories of Middle East, Europe and Asia, which encompasses 468
stores that are either franchise, jointly-owned or fully owned (Marks & Spencer, 2016).
Situation Analysis
External Analysis
PESTLE
evaluate the factors that exist in external work of a business, and have the potential to
influence the operation of that said business. The factors involved are essential to evaluate in
order to determine the current position of the brand and to base the future strategies (Makos,
2014)
Political Factors - Marks and Spencer have benefited itself from the free trade
(European Commission, 2013). This has also resulted in the reduced cost of sourcing.
The global uncertainties have caused the international business of M&S to stall in
Marks & Spencer 2
2015, which compelled the business to shutdown 12 stores in 2016 due to decreased
profitability. .
Economic Factors - While all the other competitors such as Asos and Aldi were
compelled to offer discounted rates, M&S stood still and focused on delivering the
premium products. Even though it experienced a decline in sales for a short time
period; however it built its over-all consumer base. It has been observed that buyers of
UK have become price sensitive. Different factors such as Brexit, pound fluctuation,
decline in commodity pricing and other microeconomic issues have caused the loss of
2016 that involved its 1000 employees in its charity event (Marks and Spencer, 2016).
Technological Factors - The Company has its very own platform on web that allows
user to make their purchase online. It has also presented allocation replenishment and
analytics system as its big data projects. It has around 150 engineers employed to
Shwopping, in which 10.6 million of garments were donated to Oxfam. The price of
consumer rights. Also, it emphasis more on the regulation of health and safety.
Designed by Porter, the five force model determines the intensity of competitiveness
that exists in a market place (Porter, 2011). Following is the evaluation of Marks & Spencer
Bargaining
power of
buyers
Threat of Bargaining
substitute power of
products Suppliers
Porter’s Five
Force Model
Threat of New Entrants - Even though the strong and loyal consumer base of M&S
have the potential to discourage new entrants (Vizard, 2015); however, brands like Matalan
and George are attempting to penetrate in the market with low pricing. Also, the focus of
Next, Gap, H&M, and Zara is oriented towards youth as an attempt to address masses with
affordable price and latest fashion. ASOS, on the other hand, offers its customers an online
requires it to maintain consistency in regards with the needs of consumers (PWC, 2015). The
threat of substitute product for M&S is high, as it is easier to imitate the products offered by
the company, and to sell it in cheaper or affordable price. It is also highly dependent on the
preference of consumers, as they might want to buy products that are affordable and holds
Bargaining power of buyers - The product-oriented strategy has not much favoured
the company, as all the other competitors are focusing on the approach that is customer-
oriented, which tends to build strong relations with the people (Ruddick, 2016). In addition to
this, post Brexit consumer confidence is likely to impact the growth in sales, resulting in the
price cutting strategy in order to comply with their needs (Reuters, 2016).
Bargaining power of Suppliers - The Company experienced a sales decline post the
era of 1990s, which compelled it to outsource the overseas suppliers. This caused more
damage than the existing competition of the market in regards with the pricing.
Competitive rivalry - The competition for M&S exists in the form of fashion retailers,
home wear stores, and supermarkets chain. Tesco, ASDA, and Sainsbury are the direct
competitors in regards with its food department; while Zara, John Lewis and Zara directly
compete with the company in terms of home wear and clothing retails (Retail Week, 2016).
Internal Analysis
It is amongst the best tool for strategic analysis that identifies the organization’s
activities that are concerned with the production of a service or product that it offers.
Inbound Logistics
It relates to the delivery, storage and transport of the goods that are to be utilized in
the operations of a business. The company initiated Plan A and achieved GBS supply chain
Marks & Spencer 5
award. M&S is also known for its involvement in environmental and social influence of its
operations in business.
Operations
Marks and Spencer have reportedly invested ample amount of efforts and resources to
enhance the experience of consumer, and to improve the quality of its bakeries and sub-
brands (Marks and Spencer, 2016). However, its website was shutdown in 2015 in
Outbound logistics
In 2010, the company established a super warehouse after closing different small
M&S focuses on the improvement of product, style and quality. In order to do so,
Service
failure; M&S is striving to improve its customer service. It offers free delivery for its
customers on every purchase that is made above £50; along with the free returns if the
SWOT Analysis
SWOT analysis determines the internal as well as external potential and capabilities
Strengths Weakness
Opportunities Threats
Objectives
Objectives that are evaluated through the process of SMART, tends to determine the
Specific
The specific goal of M&S is to achieve internalization, it would require the managers
to evaluate the factors associated with the country or region the company has planned to
expand on.
Marks & Spencer 7
Measureable
The company must focus on measuring its performance as well as its progress
towards achieving the said goals; and whether or not the said progress is on the right time
track.
Achievable
M&S must evaluate whether or not opening up new stores is achievable by the
Realistic
Marks and Spencer is required to make goals that are realistic and are aligned with the
company’s potential.
Time Bound
The objectives of the company must be achievable in a given time frame, such as it
Strategy
In order to identify and project the strategy of delivery, it is most appropriate to use
the Ansoff matrix. It facilitates in understanding the options that are available for the
company, i.e. Marks and Spencer as per the market and product it is associated with to
develop a strategy.
Marks & Spencer 8
ANSOFF Matrix
Segmentation
The segmentation of M&S is mostly based on the clothing product it offers for both
the genders, where the business and casual perspectives are considered the most.
Target Market
Each and every individual, who love to dress up smartly, are targeted by the company
irrespective of their age. Currently youth is more inclined towards fashionable clothing
(Rajput et al. 2012); therefore it benefits the profits and sales of the company.
Positioning
Marks and Spencer is securely positioned amongst the top most brands in the given
region. It is stable and has a competitive advantage of being a big brand, intense marketing
Tactics/Action
Place
Marks and Spencer has many stores across the globe, which are easily accessible to its
consumers. Also, it has marked a virtual place, i.e. its website to provide convenience of
Product
Most of the products offered by the company are based on the needs and requirements
of consumers. It is best known for clothing if offers for women, and also for the clothing
Promotion
The company promotes its product through advertisement on its website and
television. While food items are promoted through the display of banners of large size in
stores.
Pricing
The products offered by Marks and Spencer have a diversified range; some of the
items are affordable in price, while the other clothing item are of premium quality and
expensive.
Physical evidence
Even though the company has many stores, it has launched a website that serves a
Process
Marks and Spencer believes in increased efficiency of process through its transparent
management, which further enhances the experience of customers thus providing greater
People
Marks and Spencer has been reported to be a good employer, which takes care of its
employees so that they feel satisfied and valued. Also, it provides them with high quality
As per the extended marketing mix of Marks and Spencer evaluated above, the most
appropriate method of marketing plan would be conducting it through the activity of CSR. It
can enter into initiatives that concerns the ethics and morals of corporate business that would
not only benefit the society but also its employees. It can spread awareness through different
Budget
Control
Marks and Spencer can control its staff in order to achieve the objectives of the
company (Karmer, 2011). The most effective form of control would require managers to
identify the performance and progress of the company and adjust workforce accordingly. The
key indicators in the above mentioned plan would include market share, consumer approach
Conclusion
The company sustained its financial crisis by holding on to its brand image and
premium pricing; and focused on making investments in advertising and marketing. Even
though it indicated a decline in its sales in 2008; however, these were improved from the year
later than that while all the other retailers were compelled to hold discount pricing strategies
Marks & Spencer 11
(Thompson and Martin, 2010). The factors that contribute in the brand positioning of M&S
includes business commitments in regards with environment, social and ethical values. It has
dedicatedly worked in the favour of community care, waste reduction, and responsible
Task 2
Communication Plan
Promotional mix refers to the collaboration of different factors that contributes to the
delivery of a specific message. These factors include sales promotion, personal selling, public
relations, and advertising (Kotler, 2015). All of these elements are used to spread awareness
or to communicate with the large target market, in order to attract them towards a specific
goals or to achieve profits and organizational success (Sceulovs & Sarkane, 2010).
Target Audience
The target audience selected for this particular market plan is men and women of
middle-aged group. These are the individual who aspire for latest trend and fashion; and tend
to change their wardrobe collection every season. They belong to elite class who can afford
new clothes every season. Also they are the ones who love to follow fashion and are
extremely brand conscious. They have high preferences towards premium quality products
and would not settle for anything cheaper or of lesser quality. They will never opt for any
Channel
The most appropriate channel to market and communicate with the aforementioned
target audience is through street banners, and social media. Along with the rise of
technological advancement, social media is most widely used channel across the globe
(Castronovo & Huang, 2012). Almost everyone has the access to the internet. Also the nature
of social media addresses large population with lesser efforts. The entire campaign will have
a follow-up which would not just include a series of messages on social networking site, but
Message
The message of this marketing plan is to donate the old clothes to charity or to the
people who need them. Since the elite class consumer of M&S can afford new clothes every
season, they tend to throw away their old clothes. This campaign would encourage them to
donate their old clothes to the poor people through a system organized by the company. Not
only will it benefit the society, but will improve the image of the company in regards with
Poster
Feedback
Individuals are expected to have a positive response, as this is a campaign that would
benefit the society and its people more than it is benefiting the company. Also, if the response
is better than expected, then it means that the company will be able to help the poor people
more.
Marks & Spencer 14
References
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Davey, J. 2016. M&S reports worst clothing sales fall for a decade. Retrieved from
http://uk.reuters.com/article/us-m-s-outlook-idUKKCN0ZN0EH
European Commission. 2011. M&S aims to become world's most sustainable retailer.
fundings/united-kingdom/488_en.htm
Jacobs, G., van Witteloostuijn, A. and Christe-Zeyse, J., 2013. A theoretical framework of
https://www.researchgate.net/profile/Gabriele_Jacobs/publication/256645542_A_theo
retical_framework_of_organizational_change/links/00b49528f8ccf4332e000000.pdf
Joy, A., Sherry Jr, J.F., Venkatesh, A., Wang, J. and Chan, R., 2012. Fast fashion,
sustainability, and the ethical appeal of luxury brands. Fashion Theory, 16(3), pp.273-
http://www.tandfonline.com/doi/pdf/10.2752/175174112X13340749707123
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson
https://www.researchgate.net/profile/Philip_Kotler/publication/44508949_Marketing/l
inks/543c0ea00cf204cab1db65cf.pdf
Marks & Spencer 15
Kramer, M.R., 2011. Creating shared value. Harvard business review,89(1/2), pp.62-77. Data
rcbg/fellows/N_Lovegrove_Study_Group/Session_1/Michael_Porter_Creating_Share
d_Value.pdf
Makos,J. 2014. Analyse PESTEL for Monitoring your Business or Organization. Retrieved
Marks & Spencer. 2015. Annual Report and Financial Statements. London: Marks & Spencer.
Marks & Spencer. 2015. Think Innovation: How we’re encouraging innovation across M&S’.
innovation-how-we%E2%80%99re-encouraging-innovation-across-mands
%E2%80%99
Marks & Spencer. 2016. Annual Report and Financial Statements. London: Marks & Spencer.
Martinuzzi, A., Kudlak, R., Faber, C. and Wiman, A., 2011. CSR activities and impacts of the
http://www.sustainability.eu/pdf/csr/impact/IMPACT_Sector_Profile_RETAIL.pdf
Porter, M.E., 2011. Competitive advantage of nations: creating and sustaining superior
https://books.google.co.uk/books?isbn=145165149X
Rajput, N., Kesharwani, S. and Khanna, A., 2012. Consumers' attitude towards branded
http://www.ccsenet.org/journal/index.php/ijms/article/download/14722/10867
Reuters. 2016. Here’s how the Brexit Referendum is affecting the UK economy so far. Data
Ruddick, G. 2013. Should M&S give up on clothes and focus on food? Data retrieved from
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10403348/Shoul
d-MandS-giveup-on-clothes-and-focus-on-food.html
https://www.theguardian.com/business/2016/jul/07/welcome-to-the-ms-merry-go-
round
Sceulovs, D. and Gaile-Sarkane, E., 2010. Electronic tools for company’s presence,
https://www.researchgate.net/profile/Deniss_Sceulovs/publication/228892252_ELEC
TRONIC_TOOLS_FOR_COMPANY'S_PRESENCE_IDENTIFICATION_AND_M
ARKETING_IN_E-
ENVIRONMENT_THEORY_AND_PRACTICE/links/55e04e0308ae2fac471aacb6.p
df
Thompson, J.L. and Martin, F., 2010. Strategic management: awareness & change. Cengage
isbn=1408018071
Tungate, M., 2008. Fashion brands: branding style from Armani to Zara. Kogan Page
http://202.74.245.22:8080/xmlui/bitstream/handle/123456789/352/Fashion
%20Brands%20by%20Mark%20Tungate%20.pdf?sequence=1
Marks & Spencer 17
Vizard, S. 2015. Marks & Spencer brand perceptions on the rise as it is rated one of the UK’s
spencer-brand-perceptions-on-the-rise-as-it-is-rated-one-of-the-uks-top-brands/
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Appendices
Budget
Marks & Spencer 19
Poster
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