Brand Extension Strategy for Marks & Spencer: An Analysis

Principles of Marketing

Principles of Marketing

INTRODUCTION
Marketing is a tool for promoting company's product or service as effective marketing
strategy is important to make a business successful. To introduce or launch a product in the
market company use different principles of marketing. To carry forward this report, Marks &
Spencer is considered which is a British multinational retailer, headquarter in London, UK.
Company deals in selling clothes, home, food products and also founded in 1884 by Michael
Marks and Thomas Spencer. The report outlines market share, market size and trends of the
respective brand. The new product development strategy is discussed using Ansoff model. The
report also outlines the target market for new brand and using Pestle framework issues are
discussed. In the end the report covers competitive strategies and visual image of brand
extension.
MAIN BODY
Background on the chosen brand include useful data such as market share, market size and trend
in sales.
Market share
Marks and Spencer market share is around 3.2% in the grocery market of UK. It has 1000plus
stores in UK and 472 stores across the world.
Market size
Marks and Spencer has 1037 stores located in UK and they serve their products to about 32
million customers all over the world with their quality products.
Trends in sale
In the recent years, Marks and Spencer has gain strong brand quality which attract people to
increase their customer loyalty. There is a huge trend in the sales of the company because of
producing good quality products. The company generated over nine billion pounds of revenue.
Most of the revenue of company is made from the sales of food in UK whereas small part of
revenue is generated from international and franchises operations.
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