Interpret Market Tends and Developments

Interpret market trends and
developments

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Interpretation of market trend helps in effectively understanding the needs of the
customers. Analysing market trend is useful in determining the changing market trends of the
competitors for higher expansion and growth. Market development is an effective growth
strategy which helps in identifying and developing new market segments for the particular
products and services. This strategy helps in targeting those customers who are not buying
specific products and services which in turn results in long term sustainable growth.
Marks & Spencer is a multinational British retail company founded in the year 1884 by
Michael Marks and Thomas Spencer. Company is headquartered in Westminster, London. It
offers wide range of products and services across the globe.
This study will highlight and interpret market trends and development for a specific
business. Quantitative analysis will be carried out in order to interpret the comparative market
data. Furthermore, this study carries out qualitative analysis in order to demonstrate the success
of marketing activities. Lastly, this report helps in final market analysis.
MAIN BODY
Project 1
Marks & Spencer is a multinational British retail company founded in the year 1884 by
Michael Marks and Thomas Spencer. Company is headquartered in Westminster, London.
Marks & Spencer has approximately 959 stores in the UK and around 1463 stores in 57 countries
across the globe. It has revenue of £10,377 million in the year 2019.
Products and services: Marks and Spencer offers wide range of products and services
across the globe. It offers wide range of quality products and services for men, women and kids.
It deals in various products and services such as clothes, shoes, cosmetics, perfumes, toiletries,
kitchen equipments, food and drinks, luxury goods, furnishing, bedding, gifts, online services,
energy, banking services, technology, audio and visual equipment, etc.
Current market situation: Marks & Spencer is performing exceptionally well across the
globe by expanding and growing business in national and international markets. It offers crucial
marketing strategies by effectively maintaining sustainable and ethical business. Expansion of
business by tapping new customers and market helps in future growth of the company by
maintaining effective market position better than its competitors.

Current market strategy: Marks & Spencer uses effective tools such as segmentation,
targeting and positioning to gain better analysis of the current market trends and position of the
company. Marks & Spencer focuses on dividing the market into various segments according to
the demand of the customers, demographics, geographic, attitude of the customer, etc. Marks &
Spencer targets the market according to the size and potential of the organization. It focuses on
targeting the market which is easily accessible to them for future sustainable growth and
expansion. Marks & Spencer also focuses on price positioning strategy in order to attract price
sensitive and high income based customers. Marks & Spencer focuses on improving the
corporate image of the company by targeting new target customers and market share. The key
strategy is to target those customers who have the potential to increase the sales and profit of the
Marks and Spencers. It will focus on developing those products which are useful for the growth
of the company. It offers goods and services at a competitive price which in turn results in higher
competitive position. Marks & Spencer focuses on integrating online marketing strategy and
using social media platforms which helps in enhancing the shopping experience of the customers
by tapping large market share. Marks & Spencer hire trained professional who have desired
skills and knowledge to perform specific task. It also provides 24*7 customer services in order to
resolve grievance as quickly as possible. Marks & Spencer also provides after sale services to the
customers for effective shopping experience. This strategy helps in retaining prospective
customers and making new customers.
Internal and external sources: SWOT analysis is carried out to gain relevant information
regarding business activities: Strength: Marks & Spencer is of the leading retail multinational company and has
operations all across the globe. It offers high quality products at a very reasonable price.
It has 1463 stores across the globe which helps in easily reaching customers. Weakness: The sales of the company has not increased significantly with comparison to
the number of stores. Opportunity: Implementation of effective online services and social media platforms
results in reaching large number of customers. Tapping new markets helps in increasing
the market share.
 Threat: Rise in number of rivalry competitors such as Resco, Centra, Asda, etc. who
offer wide range of products and services leads to lower market share and profitability.

PEST analysis is carried out to gain relevant information regarding business activities: Political: Government legislations, free trade policies, political instability, tax policy,
import and export, etc. results in various trade restrictions. There was a negative impact
of Brexit on the sales of the company. Economic: Factors like economic crisis, high inflation rate results on lower sales and
profit for Marks & Spencer. Exchange rate, interest rate, disposable income,
unemployment rate, etc. influences the performance and business activities of the
company. Social: Consumer attitude and preference has been changing frequently. Marks &
Spencer needs to constantly reform the business activities in order to sustain in the
market. Technological: Technology has been changing at faster pace which results in higher cost
to the company. Integration of advanced technology helps in easy access to the products
24*7 in order to enhance shopping experience.
Legislations, code of practice and regulations: Marks & Spencer needs to company with
various laws such as employment saw, health and safety safety law, discrimination law, rules and
regulations of the company within which the company is operating, etc. for smooth functioning
of business.

Data set regarding consumer expenditure and sales of retail stores from the year of 2008 to
2018 is presented below:
Year
Consumer
expenses (in GBP
million)
% change in
Consumer
expenses
Retail sales in
textile, clothing
and footwear
stores in Great
Britain (in GBP
million)
% change in
retail sales
2008 49726 38588
2009 49535 -0.38% 40370 4.62%
2010 51374 3.71% 42528 5.35%
2011 54276 5.65% 42958 1.01%
2012 55898 2.99% 43164 0.48%
2013 58150 4.03% 43660 1.15%
2014 61815 6.30% 46026 5.42%
2015 65064 5.26% 46726 1.52%
2016 67736 4.11% 45827 -1.92%
2017 71727 5.89% 47478 3.60%
2018 70001 -2.41% 47411 -0.14%
2019 74120.4 5.88% 49131.2 3.63%
2020 76545.1 3.27% 49975.3 1.72%
2021 78969.8 3.17% 50819.3 1.69%
2022 81394.5 3.07% 51663.3 1.66%
Interpretation: The % change in consumer expenses and % change in retail sales is
fluctuating every year. It has been established that, % change in retail sales is lower as compares
to the % change in consumer expenses. This states that, company sales is higher which in turn
results in higher profitability.
Computation of Correlation
Particulars Consumer expenses (in
GBP million)
Retail sales in textile,
clothing and footwear stores
in Great Britain (in GBP
million)
Consumer expenses (in GBP
million)
1 .94
Retail sales in textile,
clothing and footwear stores
in Great Britain (in GBP
.94 1