International Market Entry and Marketing Strategies of Marks & Spencer

This report discusses the international market entry and marketing strategies of Marks & Spencer (M&S) in the USA and India. It compares the two markets, analyzes suitable market entry methods, and examines the marketing strategies followed by M&S for success in international markets.

GLOBAL MARKETING

EXECUTIVE SUMMARY
International market entry has become one of the most common trends to gain
competitive advantage as well as higher profitability (Eteokleous, Leonidou and Katsikeas,
2016). The study has discussed Marks & Spencer and its internationalisation in USA and India
(Asian market). For effectively understanding the differences in internationalisation process
report has provided a comparison of both the markets along with analysis of suitable market
entry methods. The report has also provided a critical discussion of the marketing strategies
followed by organisation to gain success in international markets.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................3
BACKGROUND.............................................................................................................................3
COMPARAISION OF TWO INTERNATIONAL MARKETS.....................................................4
METHODS FOR FOREIGN MARKET ENTRY...........................................................................6
MARKETING STRATEGIES FOR INTERNATIONAL SUCCESS............................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Internationalisation is defined as the process of expanding or implementing products or
services to different international markets which are adapted to local culture or market. There are
several factors such technology, social media, supply chain improvements and changing
perspective of customers which encourages companies to enter into international markets. The
success in international market depends on several factors and market attractiveness which must
be analysed by the organisation. The report will discuss the different methods of international
market entry methods using case study of Marks & Spencer (M&S). It will also evaluate
different market strategies which can help companies to retain their huge success in various
markets as well.
BACKGROUND
M&S is a British retailer which deals in food, clothing and household products. The
organisation has it’s headquarter in London, England. The company is well known for its high
quality products and services all over the world. In addition to the domestic UK market M&S
also provides its services in several international markets such as USA, India, Sri Lanka and
Canada. It deals in both online and offline modes. The M&S stores throughout the world carry
the essence of organisational brand value. The organisation also operates internationally.
Internationalisation triggers:
There are several factors which act as motivating and triggering force for the organisation
to enter new international markets. Some of these factors are as follows:
Innovation and technology: The technology such as online retailing, digital marketing and
information technology allow M&S to easily communicate with its stakeholders. Thus physical
or geographical boundaries have no longer remained barrier for business. Organisation can easily
use technology to operate any business environment (Schlegelmilch, 2016).
Competition: M&S is facing fierce competition from local as well as global organisations in UK.
Thus for enhancing its market share and to retain strong brand value it has also become

mandatory for the organisation to make itself recognise at international level instead of limiting
operations to only United Kingdom.
Changing customer needs: Another driving force motivating M&S to go international is that
due to increasing communication and digital media it is possible for customers to get influenced
by the services and products of other organisations (Morgan, Feng and Whitler, 2018). Thus
there is increasing demand of customers for M&S products. To meet such opportunities M&S
requires adopting internationalisation strategy for its sustainability in this competitive market.
Emerging markets: Developing economies such as Asia and China are emerging as new
potential markets which have immense possibilities of growth. Thus from strengthening the
future positioning and profitability targets it is necessary for M&S that it must grab these
emerging economies by expanding its business in them.
COMPARAISION OF TWO INTERNATIONAL MARKETS
M&S is operating in India as well as United States which are completely different market
segments. The operational activities of the organisation in both of these markets are affected by
variety of factors such as political, customer perspectives, technological and legal factors. The
comparative evaluation of both of these markets for M&S is provided as below:
Affecting factor United States India
Political factors Being a developed nation US political
factors are quite strict as compare to that
of India. The regular trade reforms for
foreign companies often create
operational challenges for the
organisation (Gomes, Sousa and
Vendrell-Herrero, 2019). Though strong
corporate government in USA also
eliminate the cooperative issues such as
corruptions or resistance
As compare to US the political
stability in India is low. However
being a developing country the
foreign investment is more
encouraged with limited restrictions
which is beneficial for the M&S.
Economic US is stable and developed economy
thus higher employment rate allow
India is developing country with
huge growth opportunity in Asian

organisation to work in stable economy.
It also allow organisation to easily ensure
resource availability and desired prices
for its products.
region. Developing economic gives
large growth options but due to low
average income and higher
unemployment rate it is not possible
for M&S to sell its products at high
income. Thus in such economies
organisation has to keep its prices
significantly lower to capture greater
market segment.
Social The social and cultural factors of United
States are greatly different than that of
India. Thus most of the products of M&S
are developed in accordance with the life
style of people. This is especially
reflected in clothing and food segment of
the organisation.
The cultural diversity in India is very
huge and thus it must be reflected in
clothing range as well. Though at
present organisation has not included
Indian culture in clothing range but
considerable adaptations are
observed in food and other
household products provided by
organisation.
Technological US is considered to be more efficient and
advanced in terms of technological
development. Thus organisation can
easily plan robotic assistance or other
development in information technology
for its operational efficiency with low
cost and better security.
Contrary to US, technological
development in India is in
progressive phase. Thus trend of
online retailing is increasing M&S
has huge opportunity in India as well
to fully explore the technological
advancements.
Environmental Sustainability and environmental policies
are quite strict in US. M&S in US is
required to follow all environmental
policies related to plastic usage, carbon
emission and other sustainability
concerns (Cantoni and et.al., 2019).
In India the environmental
legislations are strict but seem to be
highly influential. Thus for achieving
success in Indian market company
can use its CSR policies as its
marketing strategy. It will attract
wide range of individuals who
support sustainable organisations.
Legal The legislation such as minimum wages, The workplace policies and business

occupational safety and workplace
conditions are very strict in US. Thus
M&S is strictly required to follow these
legislations so that it can build a positive
image and does not face any legal
complications.
regulations related to product and
service quality, business registration
and taxation policies of India are
different from US in terms of scope
and flexibility (Eteokleous, Leonidou
and Katsikeas, 2016). Thus these
legislations may vary as per local
regions of India.
Due to these vast opportunities M&S have chosen India and US as its one of the
important international operating destinations.
METHODS FOR FOREIGN MARKET ENTRY
M&S used to follow vast range of entry methods for its expansion in international
markets. These methods usually include approaches like licensing, franchising, joint ventures,
foreign direct investment (FDI) and as wholly owned subsidiary. The organisation has achieved
huge success in Indian market which has become the largest market after UK.
Selection of franchising and partnership in Indian market over other methods:
In FDI organisation directly invest in the facilities of the target market. However at
present the FDI policies of India seem to be quite challenging for M&S. Thus organisation has
not executed any plan to enter Indian market through FDI or wholly owned subsidiary (Wagner,
2018). At present M&S has franchisee in the targeted market in which it sold its intellectual
property rights to franchisee. The social and cultural aspect of Indian market are very diverse
from that of UK or US market thus to effectively penetrate in market organisation limit its
approach to online selling in this targeted segment (Wu, 2016). For better capture of market
M&S is trying to establish more number of physical stores so that it can effectively create its
physical presence.
With online or direct selling M&S could have also faced several challenges like shipping
cost, import and export duties and complex procedures along with high chances of delayed
shipping. This is one of the reasons that instead of choosing theses methods M&S adopted for

franchising and partnership. In India organisation has its partnership with Planet retail in addition
to nearly 14 franchises. India has been a hotspot for the multinational organisation because the
high population of the country and increasing customer demands make it suitable market. Thus
to avoid fierce competition from the local as well as other international companies the decision
of M&S to enter through partnership and franchising is considered as best approach. Another
advantage of licensing and franchising is that these methods are very low cost and have
minimum risk.
The local companies help M&S to make quick positioning in the Indian market. Though
there are certain risks associated with franchising that for long term Security Company must
strictly follow regulatory and legal requirements. The organisation is trying to have maximum
control over the franchising or partnership contracts. With partnership the investment cost is also
reduced and company is perceived as local entity by the customers (Samiee and Chirapanda,
2019). This is also one of the strong factor encouraging customers to accept the products and
services of M&S. Partnership is costly than franchising but it may give better results in terms of
enhancing customer engagement. However it also involves risk factor due to integration of two
different cultures. Thus existing strategy of franchising is effective and for accomplishing future
growth plans in India and other Asian markets company can adopt for partnership approach.
MARKETING STRATEGIES FOR INTERNATIONAL SUCCESS
M&S aims at increasing its global presence and with this objective organisation has
successfully established its presence in India. The first strategy adopted by organisation is that to
ensure its quick penetration in India it has made several franchisees and leading partnership with
successful Indian companies. The organisation has use following marketing strategies to gain
huge success in its targeted market.
Flexibility and risk: The Indian policies are gradually becoming flexible for FDI and thus huge
investment from M&S is safe decision of the organisation. Despite having political instability
and labour union issues organisation has emerged with effective management policies to retain
talented human resources and to comply with all legislations.

Products: Organisation is selling good quality and advanced household products and apparels
which are quite popular in the market. M&S is also identifying the essential products which are
in great demand in Indian society so that its sales can be increased (Hapsari, Stoffers and
Gunawan, 2017). The organisation adapted standardisation in its clothing range and thus initial
response of people was good in response to innovative products and clothing range. However to
attract more customers company can also include variations in clothing based on Indian culture.
It will help M&S to overcome competition and to grab future opportunities.
Price and promotion: As compared to the domestic UK market the average income of customers
in India is low. Thus considering this fact M&S has kept its prices lower than that in India. The
price adaptations aimed at attracting majority of customers who otherwise may choose other low
cost service providers. For promoting its services and brand company is using effecting
advertisement strategies such as loyalty programs, discounts, social media and online promotions
as well as advertisements in local newspapers, radio and TV channels.
Place: Observing the lower trend of online shopping M&S emphasised on opening more
physical stores in major cities of India so that people can easily access the organisational
services. Though products are also available online but large scale physical presence in malls and
shopping centres helped company to succeed in the market (Laufs, Bembom and Schwens,
2016).
CONCLUSION
It can be concluded from the study that international markets have different driving and
resisting forces affecting the success of foreign organisations. Thus while planning for
internationalisation companies must evaluate these factors in critical way. It has been also
evaluated from the study that for achieving success in different markets organisations must make
several changes in their marketing strategies as per the customer preferences and behaviour in
the targeted market. It can also be concluded from the report that the entry methods chosen by
organisation also plays key role in the success and growth. Thus companies must choose best
method for capturing such markets and to enhance their market and brand value.

REFERENCES
Books and Journals
Cantoni, A.D., and et.al., 2019. International marketing strategies adopted in the franchise
internationalization process: a multiple case study in the apparel
industry. REMark. 18(2). p.19.
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international marketing: review, assessment, and future research. International
Marketing Review. 33(4). pp.580-624.
Gomes, E., Sousa, C. and Vendrell-Herrero, F., 2019. International marketing
agility. International Marketing Review.
Hapsari, C., Stoffers, J. and Gunawan, A., 2017. The influence of perceived cultural and business
distance on international marketing strategy decisions; A case study of Telkom
Indonesia International. International Review of Management and Marketing. 7(3).
Laufs, K., Bembom, M. and Schwens, C., 2016. CEO characteristics and SME foreign market
entry mode choice. International Marketing Review.
Morgan, N.A., Feng, H. and Whitler, K.A., 2018. Marketing capabilities in international
marketing. Journal of International Marketing. 26(1). pp.61-95.
Samiee, S. and Chirapanda, S., 2019. International marketing strategy in emerging-market
exporting firms. Journal of International Marketing. 27(1). pp.20-37.
Schlegelmilch, B.B., 2016. Global marketing strategy. Cham: Springer Nature.
Wagner, G., 2018. International Marketing. Organization.
Wu, C.W., 2016. The international marketing strategy modeling of leisure farm. Journal of
Business Research. 69(4). pp.1345-1350.