International Marketing Analysis of Marks & Spencer

The report had conducted a marketing analysis of Marks & Spencer by taking into account United Kingdom and India as domestic and international market. The report had examine the macro and micro environment of both the countries to contrast the difference in strategies.

Running head: MARKETING
Marketing
Name of the student
Name of the university
Author note

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Executive Summary
The report had conducted a marketing analysis of Marks & Spencer by taking into account
United Kingdom and India as domestic and international market. The report had examine the
macro and micro environment of both the countries to contrast the difference in strategies.
The study showed that there is significant difference in marketing strategies and the company
needs to make improvement to their strategies to sustain in both the markets.

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Table of Contents
1.0 Introduction..........................................................................................................................3
2.0 Situation Analysis................................................................................................................3
2.1 Domestic Market Analysis – United Kingdom................................................................3
2.1.1 Pestle.........................................................................................................................3
2.1.2 SWOT analysis..........................................................................................................5
2.2 International market Analysis..............................................................................................5
2.2.1 Pestle.............................................................................................................................5
2.2.2 SWOT analysis..............................................................................................................7
3.0 Segmentation, Targeting and Positioning............................................................................8
3.1 Segmentation....................................................................................................................8
UK Market.........................................................................................................................8
Indian Market.....................................................................................................................8
3.2 Targeting..........................................................................................................................9
3.3 Positioning......................................................................................................................10
4.0 Marketing Mix...................................................................................................................10
5.0 Innovation and Trends........................................................................................................13
6.0 Recommendation................................................................................................................13
7.0 Conclusion..........................................................................................................................13
8.0 References..........................................................................................................................14

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1.0 Introduction
This report has presented an international marketing retail analysis for Marks &
Spencer. Globalization has increased the growth of the retail industry exponentially due to the
availability of free trade in the market. The retail industry in the United Kingdom has
dropped in the year of 2018 since Brexit vote. The retail industry is highly saturated due to
the presence of large number of global players in the market. The retail industry has been
experiencing a drop in Europe but Asia and Middle East are booming with growth in retail
(Crossley 2018). The economy of India is growing at a rapid rate and with significant
increase in the disposable income of the consumers, retail industries are making more profits.
2.0 Situation Analysis
2.1 Domestic Market Analysis – United Kingdom
2.1.1 Pestle
Political United kingdom has been highly impacted by the brexit policy where
there has been significant depreciation in growth of the retail industry.
United Kingdom has been politically unstable which acts a drawback for
the operation of Marks & Spencer. Marks & Spencer has been able to
reduce their sourcing cost due to the free trade policy. The change in the
taxation laws and government policies has also affect the operation of
the organization (Wood 2019).
Economic Brexit has impacted the currency considerably which means that Marks
& Spencer are facing conflict with smaller retailers over the rise in
product prices (Stevens 2018).
Social The population demographics of United Kingdom is relatively old and is
aging which acts as a disadvantage for the organization. This causes a

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dilemma in choosing the product that needs to be pushed in the market.
Moreover, social trends suggest that Marks & Spencer has been
criticized for being non trendy which has created negative publicity for
them.
Technological Technological Infrastructure in the United Kingdom is highly developed
and the use of digital media and ecommerce has increased the sales for
the retail industry. The convenience of shoppers have been increased
significantly by the implementation of contactless payments (Pantano et
al. 2017). Cyber breaches have increased significantly in the past few
years so security, compliance and risk has become of the major concerns
of risk for the retailers. M&S has implemented a highly developed
platform which has been used to manage and automate the supervision.
Legal United Kingdom’s exit from EU will cause all the organizations in the
retail industry to face legal action. M&S has to develop legal plans to
deal with the changes in the regulatory policies after the completion of
exit (Daly, Hughes and Armstrong 2018).
Environmental Environment regulations are strict in United Kingdom and it is essential
for the companies in the retail industry to comply with the changes in
the retail industry. M&S has been sourcing fresh milk from dairy farms
that are RSPCA Assured (McKenna 2017). This means that milk sold by
the company comes from the farms having one of the highest possible
welfare standards. M&S has been focused on developing clothing
products that are produced by using less chemicals, water and energy
and moving towards developing more sustainable operational processes.

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2.1.2 SWOT analysis
Strength Weaknesses
 Offerings are strong and in line with
the trend in the United Kingdom
market
 E-commerce infrastructure is high
 Highly effective CSR polies
 Focused on improving experience of
the consumers
 Weak financial performance
 Majorly dependent on UK market
which results in development of
vulnerability in the market.
 Product recalls hampers brand image
and customer trust
Opportunity Threats
 Opportunity to invest in Indian
market
 Improving their digital infrastructure
and market strategy to increase
ecommerce
 Redefining the clothing segment
 Deprecation of Sterling after the
vote for Brexit
 High competition in the retail
industry in United Kingdom
 Frequent changes in clothing trends
and space
2.2 International market Analysis
2.2.1 Pestle
Political Political stability of India is high in past few years and implementation
of new foreign direct investment policies have provided better trade
opportunities for the foreign companies (Kulkarni and Singhal 2018).
Demonetization had initially affected the operation of retail companies
in India but are experiencing stable political environment.

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Economic The implementation of 51 percent FDI in multiple brand retail and 100
percent in single brand retail has boosted the economy of the country
(India Briefing 2017). It is one of the fastest growing retail industries in
the global market which acts in favour of Marks & Spencer (Das 2018).
Social The majority of the population in the country belong to the millennial
generation which makes the country one of the most attractive brand for
fashion retailers (Ibef.org 2019). There is significant increase in
disposable income of the Indian population which also favours Marks &
Spencer entering into the Indian market.
Technological Technological growth is one of the major factor for facilitating the
growth in the retail industry in India. It has already being used to
improve the in-store experience, selecting products and browsing
convenience (Dawer 2018). Marks & Spencer has the opportunity to
capitalize on this situation as their competitors likes Tesco and Gap has
already entered the market by developing their own stores.
Legal The implementation of GST (Goods and service tax) is expected to the
growth rate of the Indian retail industry. The tax for retailers vary from
12 to 28 percent whereas earlier they had to pay 30% consisting of VAT
and other taxes. Even though, majority of the companies in the FMCG
sector have struggled to cope up with the change in the taxation policy.
Environmental Environmental regulations are strict in India and retail companies need
to comply with them. Companies need to be aware of the different
regulations before entering into the Indian market.

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2.2.2 SWOT analysis
Strength Weaknesses
 Premium brand
 High recognition in the market
 16% overall growth in 2017
 High presence on online platform
 Partnership with Reliance Retail
 Strong competition from other retail
brands
 Lack of direct online presence and is
dependent on Amazon, Myntra and
Ajio
Opportunity Threats
 Expanding their business to all the
cities in India
 Developing their own online retail
online stores
 Addressing fast changing fashion
needs of Indian consumers
 Capitalize on the growth in the
economy
 Presence of major global fashion
brands in the country like H&M and
Zara
 Change in macro environment due to
the unstable relationship with
neighbouring countries

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3.0 Segmentation, Targeting and Positioning
3.1 Segmentation
UK Market
Geographic
The majority of the stores of Marks & spencer are located in high street and all
metropolitan cities in the country. The majority of the stores are more than 11,000 sq ft and
occupies a huge area (MarksandSpencer 2019).
Demographic
The brand addresses population from age group of 3 to 50 years due to the aging
population of the country. The population consists of people having high disposable income
and belong to the upper class and upper middle class. This consists of students, professionals
and employees.
Psychographic
The brand address the cost conscious groups within the population that are willing
buy products that are reasonable at affordable prices.
Behavioural
As per the behavioural segmentation, heavy and regular users that are moderately
loyal to the brand are taken into account. The users making bulk purchases are taken into
account.
Indian Market
Geographic

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The majority of the Marks & spencer stores are located in tier 1 and tier 2 cities in
different malls. The organization has expanded their business and have their presence in
Delhi, Kolkata, Mumbai, Hyderabad, Bangalore and Chennai. They have also opened up
stores in Guwahati and other parts of North east India (Roy 2016).
Demographic
The population ranges from age group of 5 to 35 years as majority of the population is
relatively young. The younger generation is the major target for the company consisting of
working people, students and professionals. The income group consist of the upper middle
class and middle class segment in the country.
Psychographic
The overall population in India is cost conscious and the population are willing to buy
good quality products at reasonable prices are taken into account. The consumers willing to
spend on value for money products are chosen.
Behavioural
The majority of the consumers targeted are regular users having medium loyalty to
the consumers. Moderate level of purchase at one instance would be taken into account.
3.2 Targeting
The company uses differentiated marketing in United Kingdom where they provide
both lifestyle and other retail products to their consumers. The company is targeting family
products as well as products for individual men, women and kids. They want to improve their
brand image in a market that is already existing in nature. The company is targeting the upper
class and upper middle class in United Kingdom

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On the contrary, in case of India, Marks & Spencer is using niche marketing as the
strategy to address only the upper middle class and middle class segment. This is because of
the fact that majority of the population willing to buy the organizations belong to these
segments. This consist of majorly targeting in the young population in India that have been
experienced a sudden rise in their disposable income.
3.3 Positioning
Marks & spencer has positioned their products as quality products within the reach of
the consumers. This means that they are offering quality fashionable products at value prices.
This shows that marks and spencer provides value for money products when
compared to other fast fashion brands. However, in terms of value, the company provides the
products of highest value at minimum prices.
4.0 Marketing Mix
Marketing mix UK market Indian market
1. Product The company has an extended products
consisting of several products such as
Marks and Spencer
started off with clothing

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clothing for men, women and kids,
beauty products, home products, wine,
food, flowers and furniture
(MarksandSpencer 2019).
products in India but
provides similar variety
of products as they cater
in UK market.
2. Price The price of the products are ranged at
moderately high to moderate as they are
catered to the upper middle class and
middle class segment. These products
are moderately price as the disposable
income of the consumers are high.
The price of the
products are reasonable
and belong to the price
of moderate to low due
to the different
demographics in the
country. The products
offered are cheaper
when compared to other
famous brands such as
H&M and Zara.
3. Place The stores are located in high streets and
premium locations in the country where
majority of the competitors have their
presence in nearby locations.
The brick and mortar
stores are located in
shopping malls and there
are few stores in high
streets.
4. Promotion The company uses family orientation to
promote their products where they use
terms like Mrs M&S (Faull 2017). They
address whole family through
advertisements, billboards and digital
The company uses
discounts and loyalty
programs to promote
their products. The
company also uses

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marketing during special events such as
Christmas. The use of loyalty cards to
promote thei products is one of the
common below the line strategy of the
company.
social media promotions
as a large proportion of
users on online
platforms browse online.
5. Process The company provides high quality
products and all the raw materials are
sources from authentic and certified
sources. The company sources their
clothing products from China, India,
Cambodia, Bangladesh, Turkey and Sri
Lanka (Supplier Management 2019).
The company uses
suppliers in India and
from neighbouring
countries to export their
products.
6. People The company has launched campaigns
to highlight the value for money aspect
of their products. They retain their
consumers by offering them quality
product through price promotions.
The company uses
heavy discounting and
promotions during
festive occasions to
retain and acquire
existing consumers.
7. Physical evidence The stores are located at premium
locations and high streets where the
company uses visual marketing to
attract consumers.
The stores located in
high end shopping malls
where visual marketing
has been used by the
company. The stores are
designed as classy for
attracting more

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consumers with
increased disposable
income.
5.0 Innovation and Trends
Marks & spencer are still lagging behind their major competitors in terms of
innovation in providing better services to their consumers. However, they have taken
initiatives to improve their online innovation and store innovation. The company has their
own application in United Kingdom but in India they are using third party to sell their
products.
6.0 Recommendation
The analysis of Marks & spencer marketing strategies following recommendations are
suggested:
 The organization needs to develop their own online stores for selling products in India
 Marks & spencer needs to use innovation as their competitors to provide service such
as virtual trial and customized online applications.
7.0 Conclusion
The marketing analysis of Marks & spencer shows that company is still falling behind
all its competitors in terms of market share and profitability. India is the only country, where
they still have a large number of stores so they need to use innovation and fast fashion to
provide consumers within better products in the market.

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8.0 References
Crossley, I., 2018. Marks And Spencer: Growth In India Means Continued Expansion.
[online] FashionNetwork.com. Available at: <https://in.fashionnetwork.com/news/Marks-
and-Spencer-growth-in-India-means-continued-expansion,906094.html#.XH9szIgzbIU>
[Accessed 6 March 2019].
Daly, P., Hughes, K. and Armstrong, K., 2018. Brexit and EU Nationals: Options for
Implementation in UK Law. University of Cambridge Faculty of Law Research Paper, (1).
Das, S., 2018. Marks & Spencer India Achieves 40% Growth In Women’S Wear And
Lingerie Segments - ET Retail. [online] ETRetail.com. Available at:
<https://retail.economictimes.indiatimes.com/news/apparel-fashion/apparel/marks-spencer-
india-achieves-40-growth-in-womens-wear-and-lingerie-segments/62926515> [Accessed 6
March 2019].
Dawer, I., 2018. Technology: Changing The Future Of Indian Retail - Indiaretailing.Com.
[online] Indiaretailing.com. Available at:
<https://www.indiaretailing.com/2018/08/10/retail/technology-changing-the-future-of-indian-
retail/> [Accessed 6 March 2019].
Faull, J., 2017. M&S Shifts Strategy To Target Families With Paddington Bear Fronted Ads.
[online] The Drum. Available at: <https://www.thedrum.com/news/2017/11/07/ms-shifts-
strategy-target-families-with-paddington-bear-fronted-ads> [Accessed 6 March 2019].
Ibef.org, 2019. Indian Retail Industry Analysis, Retail Sector, Retail Market In India. [online]
Ibef.org. Available at: <https://www.ibef.org/industry/indian-retail-industry-analysis-
presentation> [Accessed 6 March 2019].

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India Briefing, 2017. [online] Available at: <https://www.india-briefing.com/news/india-
retail-sector-fdi-14661.html/> [Accessed 6 March 2019].
Kulkarni, S. and Singhal, J., 2018. EIC (ECONOMIC, INDUSTRY WISE AND
COMPANY) WISE ANALYSIS OF IMPACT OF DEMONETIZATION. Journal of
Management (JOM), 5(3).
MarksandSpencer, 2019. Home. [online] MarksandSpencer. Available at:
<https://corporate.marksandspencer.com/home> [Accessed 6 March 2019].
McKenna, C., 2017. Industry Standards on Farm Animal Welfare. The Meat Crisis:
Developing more Sustainable and Ethical Production and Consumption.
Pantano, E., Priporas, C.V., Sorace, S. and Iazzolino, G., 2017. Does innovation-orientation
lead to retail industry growth? Empirical evidence from patent analysis. Journal of Retailing
and Consumer Services, 34, pp.88-94.
Roy, T., 2016. Marks & Spencer Expands Presence In East India, Adds Stores In Kolkata
And Guwahati. [online] The Economic Times. Available at:
<https://economictimes.indiatimes.com/industry/services/retail/marks-spencer-expands-
presence-in-east-india-adds-stores-in-kolkata-and-guwahati/articleshow/51220487.cms?
from=mdr> [Accessed 6 March 2019].
Stevens, B., 2018. Global Retail: How Is The Rest Of The World Doing? - Retail Gazette.
[online] Retail Gazette. Available at: <https://www.retailgazette.co.uk/blog/2018/06/global-
retail/> [Accessed 6 March 2019].
Supplier Management, 2019. Supplier Management. [online] Supplier Management.
Available at: <https://corporate.marksandspencer.com/sustainability/clothing-and-home/
supplier-management> [Accessed 6 March 2019].

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Wood, Z., 2019. Marks & Spencer Closes 17 More Stores In New Blow To High Street.
[online] the Guardian. Available at:
<https://www.theguardian.com/business/2019/jan/15/marks-and-spencer-stores-close-m-and-
s-hull> [Accessed 6 March 2019].