MANAGING AND LEADING PEOPLE.

MANAGING AND LEADING PEOPLE 0
Marketing
Managing & leading people
System04116
3/29/2019

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Contents
Introduction......................................................................................................................................2
Marketing conditions.......................................................................................................................2
Development and implementation of new marketing strategies and tactics for clothing in M&S..2
Evaluation of strength of M&S strategy..........................................................................................4
Identification of dynamics and trends within marketing environment of UK retail industry.........5
Produce situational analysis.............................................................................................................6
Identification of factors that underpin opportunities and challenges...............................................7
Recommendation.............................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................7

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Introduction
The purpose of this project report is to evaluate the market condition and to develop and
implement the new marketing strategies and tactics for clothing segments within Marks &
Spencer by using various models such as PESTEL analysis, SWOT analysis, and STP model in
order to increase the market share and sustainability.
This assignment is divided into three parts. One part will covers the new marketing strategies
develop with the help of STP model and relevant marketing mix to support these new strategies.
Second part will cover identification and evaluation of dynamics and trends of marketing
environment of UK retail industry that affect the Marks & Spencer business operations. Third
part will cover the identification of key factors that underpin the opportunities and challenges for
the Marks & Spencer. In the end the recommendation will be made which covers marketing
strategies and tactics in order to satisfy market place needs and build its market share.
The Marks & Spencer is a large international retailer headquarters in London, which is,
specializes in clothing, home products, luxury food products and selling. In UK, M&S has 979
stores with 615 that sell food products only and remaining are divided in clothing and homeware
portfolio. It has six key objectives, that are maximization of profit, rise in sales, offering of high
quality services, market leadership, reward shareholders and growth (M&S, 2019).
Marketing conditions
Clothing retailers in U.K. have faced slightly challenging operating situations over last five
years. The prices of clothing have decreased currently due to tenacious price competition and
extensive discounting. This has forced growth of revenue slightly. Retailers also had to efforts
hard to hold and pull away patrons from challenging supermarkets, department stores and online
retailers. The development of the retail background and the tenacious growth of online shopping
require most retailers to invest considerably in their online offerings and distribution capabilities
that have showed useful and delivery selections now make up a relatively considerable share of
business operators’ revenue.

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Development and implementation of new marketing strategies and tactics for clothing in
M&S
The STP model is used to develop a new marketing strategy which clearly identify the
segmentation, target and positioning of M&S to support the newly develop marketing strategy.
STP model-
1. Segmentation:
 Demographic: Based on demographic segmentation, M&S targets individuals
according to their age, gender, life cycle stage. M&S targets customers between
13-45 years old, with greater weight to teens in order to build long period loyal
customers. Furthermore, gender is another important factor that M&S use to
attract its target audience. Despite the facts that its male purchasing buyer Is
higher recently M&S has invested heavily in females. M&S has developed a
strategic approach to target the women by launching a variety of female sports
lines where revenues are expected to grow in next subsequent years.
 Psychographic: M&S utilizes psychographic segmentation to target audience
based on personality, lifestyle, interest and activities. M&S aims to achieve
individuals who take pleasure in fashionable clothing. M&S does something
exceptional.
 Behavioral: Based on behavioral segmentation, M&S focuses on the way their
products make customers feel. Clearly, the M&S follows the direction.
 Geographic: Based on geographic segmentation, M&S promotes various
campaign in the United Kingdom, in United states of America, and in Asia
because fashion differentiate by region, even cities (Suttle, 2019).
2. Targeting:
Target marketing is the next stage of segmentation process where the M&S
systematically choose the segments that will allow to most efficiently and effectively
achieve its objectives.
M&S evaluates its target audience based on reachability, measurability, size and
behavioral variables. The M&S targets the women providing them specialized and
innovative stuffs. All products are available at online with unique opportunities. M&S

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create their own custom, designed cloths which makes the brand more remarkable and
identifiable in differentiation to other clothing industry. M&S targets the market place
through psychological strategies or tactics by sponsoring various fashion events.
3. Positioning: the final step of STP concerning the decision of market is the positioning.
M&S has positioned its brand as the leader of market of fashionable cloths widely,
providing high quality and innovative technology. Furthermore, M&S has convinced its
consumer that is an ambitious and victorious company. it must be stressed that M&S over
the period has shifted to attitude from product focus. The company develops perceptual
maps via research technique of marketing in order to interpret its position of product in
relation to rivalries (M&S, 2015).
Marketing mix-
1. People (Communicate with their target group): It is Important to open the effective line of
communication with the customers. M&S start making efforts on different methods of
communication for to make sure that their efforts for expanding sales will be noticed by
their target market (Rees, 2015). There are several tools which need to be kept in mind
such as:
 Offline: The M&S creates signs to make sure that offers will reach target
customers. These advertise the promotions and increase value to their products in
their own establishment. They start using a simple method with great lettering,
design and a note like “mid-season sale up to 50% off on selected lines”. They
place themselves on display that end up getting in more consumers.
 Online: They have online existence in such a rivalry market as the industry of
clothing. It is not correct that every business can be accessible but if it is within
the capabilities of the industry to themselves open up to the internet, M&S should
not pass up the opportunity to explore these industries or outlets. Recently it is
observed that U.K. and U.S. between 14% and 19% of entire earnings for home
clothing operations comes from an online mode. That is why M&S need to focus
on online business of clothing for growth in U.K retail market.

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2. Promotion (Offline events to De-virtualize the audience): By organizing party and
activities, M&S can attract faithful customers and those who do not know what they can
find in their store. For this purpose, they make an agenda for occasions that are put out at
the starting of the year so that occasional events can be scheduled with proper time and
cost, utilizing appropriate tools of marketing and taking advantage of effective channels
of communication. The most suitable time when M&S can make uproar within the
industry of fashion are:
 Kicking off the new season using showroom and fashion show where few stars
from the M&S are show to the general customers.
 When a sale of cloths begins, reach the target group with an offer to a special
carnival where they can provide benefit not only a price of sale or promotion.
 Celebrate special days such as anniversaries in the existence of the business as
when business completed additional year or if it is needed to honor a real moment
that is essential to the company. They can yield benefit of these events to offer
those target groups that keep an eye on them and cast a focus on their brand.
 They can make special sales for clothing settlement that stands out from a period
which is nearly over or make events close definite pieces (Brookins, 2019).
3. Process (Display of window): window displays is the art that effectively presents the
objects that an outlet has for selling over a grouping of materials and objects. The
influence of how demonstrations are done must not be undervalued and strong evidence
of this presents in the facts that when individual explore a preferred activity is to walk by
the wonderful paths or the modern roads through which an individual can see a display
window of the famous outlets (Newlands, 2018). Several factors that need to be
considered when referring to window dressing are:
 Modify it with definite frequency: the quickness with which fashion trends and
customer’s tastes changes that brands respond with a definite degree of quickness.
Before, changes were prepared by season, redecorate display when a fresh season
comes. What is essential is to be updated, to be awake of the street styles and to
understand what is marketing to integrate these aspects into the designs of display
of window.

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 Lighting: it is general idea but very important one. Individuals who are roaming
by will be watching at their stuffs as they draw focus on them. It is important to
provide proper lighting with their store and hook those stuffs on display.
 Key to determining what must stand out and employing it in a private spot: if
strength of them is high hooked dress, it is essential to display those dresses. In
contradiction if, they have collection of sunglasses according to the dresses that
has come that is seen in pages of bloggers ensures that they use this to attract their
target customer.
 Thematic display of window work: when an event is approaching, for example
Christmas take benefit of this and beautify their store with such clothing stuffs
that are related to the festivity.
 Set up a calendar for window display: they must not use same display for longer
period. So for that purpose they must plan important dates keep in mind.
4. Product and process (Marketing and packaging at the point of sale): include festive
packaging items related to the festivals, few sweets to the shopping bags and business
cards. A discount coupon must be use on further sales or proposing them a cloth related
magazine of fashion. This is something that the customers appreciate more. There are
information that cause the customers to recall their stores, speak well to them and
possibly return for a recurrence experience. It is in these little things that the appeal of
business resides. They must hook their customers with audacious window display, they
come in and find that the internal business invites the customers to be unable to find
themselves between the cloths, they decide to take something to home and then the way
of marketing and packaging enamors those customers more.
5. Physical environment (Active presence within social media): recently, the social media is
like a play area where every companies devotes part of their day talking with peoples,
collect new data and whiling away the time. It means that M&S clothing department
needs to participate in these methods for reaching their target audience in a better way.
Facebook is the most advanced one and helps to grow the clothing or even other
industries worldwide. The use of Facebook and Instagram by M&S will push them
towards the success, as these are the most important tool that influences the industry as
well as customers of their Industry. Therefore, M&S needs to be active on social media

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for their products specially clothing. Put pictures of each outfit of their store on Facebook
pages or Instagram pages to attract customers and start online portals for shopping from
these sites.
The above following is the new marketing strategies for the Marks & Spencer over the old
marketing strategies to grow in the competitive clothing Industries of U.K. with the powerful
strategies and tactics and attract their target audience or market for future business operations
in U.K.
Evaluation of strength of M&S strategy
Strength is defined as what every company does good in their gamut of processes that can
provide it an superior hand over its rivalries. The following tool is used to evaluate the strength
of M&S:
SWOT analysis:
 Strength
1. Customer satisfaction: the customer satisfaction is the most important point of M&S.
They have seen overall gratification across their stores enhanced by an average of 23%
after progressing out a worldwide customer service insights and listening platform
globally (Cameron, 2018). Marks & Spencer had been using a mystery consumer
program transfer one mystery customer to visit individual stores once per month to
determine the level of facility provided.
2. Clear image of brand: Marks & Spencer position their company as high-end value
product that lie clothing, which marks the premium segments. In accord with its image of
brand, the products traded by the retailers specifically in the stroke of clothing are
modern, fashionable and sophisticated. This results in strong branding and buyers are
certain of what to suppose from a store of Marks & Spencer. The M&S has adapted to
suit the expectations of a varying audience. The logo of business is an amazing example
of how M&S recognized a necessity to alteration without losing its heritage. They
launched an updated brand identity, which focused on shared community (BBC news,
2019).

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3. Private labels: in addition to marketing best brands like Versace, Veromoda, Marks &
Spencer has also its personal labels in all types. Some current private brand labels include
indigo collection, Per una, north coast, autographs and classic collection. These reserved
brands have been effective in making buyers acquainted with the tag of Marks & Spencer
and upgraded recall of brands. Private labels set an optimistic premium mindset to
building value into their brand. Their private labeling allows retailers to offer something
different to their customers. They believe in loyalty as for M&S, customer base is a major
factor to make a business.
4. Diversity: Marks & Spencer have 80,000 employees who work in their stores and offices
across the countries. The M&S encourages diversity and have buyers from all the
cultures, genders and religions. They confirm that there is no judgement of any type at
the store or offices. All those issues ensure that staffs are culturally subtle and M&S
know their customer better. With 33 million M&S customers across clothing, it is about
guaranteed that buyers can see themselves in the output of the company (Lyons, 2018).
The M&S is functioning on becoming more wide-ranging and different across the panel
and not just limited to its fashion drive or festivals even they being comprehensive with
its audience through each likely application.
Identification of dynamics and trends within marketing environment of UK retail industry
It is discussed with the help of PESTEL ANALYSIS OF UK retail industries:
1. Political factor: there are wide ranges of political factors in UK that have impact upon the
M&S in future. The first political issue that affects the M&S in UK is the tax-levied rates
by the UK government. It affects the lowest line of the Marks & Spencer in the terms of
corporate tax but also customer’s abilities to spend with M&S that is related to income
tax (Partington, 2017). Recently the rate of interest in UK stands at less of 0.5% (Jackson
and Strauss, 2018). This may be an optimistic factor for M&S as they are able to borrow
large amount for the purpose of increase of credit at low rate (Frue, 2018).
2. Economic factor: economic factor is the crucial factor that may have effect upon the UK
retail industries. From the statistical viewpoint, the years 2007 have been an economic
rollercoaster for the United Kingdom. The growth of GDP reverts to the negative with -

MANAGING & LEADING PEOPLE 9
1% contraction in the economy (Kottasova, 2018). These have major impact on Marks &
Spencer as the level of employment, income was low, and due to this reason, the
spending power of customers falls.
3. Social cultural factor: In United Kingdom, there are several social and cultural variations
taking place that may have a high impact on performance of Marks & Spencer. The
industries of fashion are more affected by developments to a greater degree and other
industries, as Marks & Spencer is also have clothing stores, which are also affected by
these trends (Woodruff, 2019). The main issue of this factor is the common aged of the
populace in UK. This might be occurs problems but it provides great opportunities to
Marks & Spencer (Barrel, 2015).
4. Technological factor: the new technological developments have changes the environment
of UK retail sectors. The expansions in technologies are communication or internet based
in nature for example extensive dissemination of broadband. The technological
developments allowed Marks & spencer to develop online models of business. An
experimental proofs as of the ONS (2009) on the issues states that the progression has
been exponential with a quick acceptance in regards to customers of online shopping in
retail and another markets. These changes also allows the Marks & Spencer to develop
their applications which allows buyers to find their branch or stocks on apps and check
the availability of product and facilities before visit the stores (M&S, 2015).
5. Environment factor: there are number of issues related to environment in UK that have
impact on the retail industry. These have comprised increasing more floods and deprived
sales because of snowstorms and the unsuccessful general authorities to ready for eras of
intemperate climate (David, 2019).
6. Legal factor: The retail industry in UK has to comply with the United Kingdom law and
European Union law. The following legal regulations that affect retail industry in UK are
taken below:
 Minimum wage legislation: an important part of legislation in United Kingdom that have
impact on Marks & Spencer with a huge number of less paid employees is of several
regulations of minimum wage.
 In this case, employers of United Kingdom have to pay their staffs a least of £6.19 per
hour for over 21 aged (BBC News, 2018). Specified the huge number of staffs of

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company such as Marks & Spencer that is pretentious by the national minimum wage will
provisionally shifts in governmental policy have a higher influence on the retail industry.
Produce situational analysis
Situational analysis refers to a group of methods that managers practice to evaluate a company’s
micro and macro environment to know the company’s capabilities, environment of business and
capabilities. The situational analysis consists of several methods but here SWOT methods is best
fitted for identifying the key factors that underpin the opportunities and challenges for the Marks
& Spencer (Lake, 2018).
SWOT analysis:
1. Strength – strengths are defined as what every company does best in its gamut of
operations which ca give it higher hand over its rivalries (Wroblewski, 2018).a The
following strength of M&S are below:
 Clear image of brand: M&S has placed itself as a high-end value product that
marks the top segments. This has led to clear branding and customer of M&S are
certain of what they should expect from M&S.
 Private labels: selling top brands, M&S has also their own labels in all the
categories such as indigo collection, north coast and many more. These reserved
labels are effective in making buyers acquainted with the name of brand and
upgraded brand recall (Vizard, 2018).
 Innovations: about 150 years of business operations, M&S has been in the
competition mainly due to its innovation spirit. The innovation in M&S is
identical with the creativity, communication and individuals across levels. This
free innovation spirit is the biggest strong point of M&S (Hodgson, 2017).
 Diversity: M&S have about 80,000 staffs who work in their stores or showrooms
and offices across the countries. The M&S encourages the diversity and have
people from al the cultures, genders and religions. There is no discrimination of
any type in the stores or offices (Karagiannopoulos, 2013)
2. Weakness – weaknesses refers to the areas where the company or the brands needs
improvement. Followings are key weaknesses of M&S:

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 Incapacity to successfully enter in foreign markets: M&S mainly has an existence
in Europe, United Kingdom and the United States. However they have started
outlets in Asia and Middle East they have not been successful in appealing the
target audience as most of its designs or patterns are western and not traditional
(Bush, 2016).
 Scalability of Supply chain: this is one of the foremost weaknesses that M&S has
is deprived supply chain scalability. Though M&S has been trying to offer
worldwide access to their produce through their online stores they have not able
to measure up their supply chain to provide globally all the locations (Trudgian,
2018).
3. Opportunities – opportunities refers to avenues in the environment which surrounds the
company on which it can capitalize to increase their returns. Following is opportunities of
M&S:
 New segments: the fashion is a developing business and new sections come up on
a daily basis. In UK, there is a vast demand for modern and sometimes ethnic
attire that presently M&S has not been able to exploit on. This is sole area that
can express a number of promises to the UK retailers (SWOT&PESTEL.com,
2018).
4. Threats – threat are factors which can be detrimental to the development of the company.
Some threats include:
 Competition: the key competitors of Marks & Spencer are Gap, Tommy Hilfiger,
and Zara. These brands also have clothing stores in UK and across the countries.
They produce same material at some extent. That is why M&S has to grow new
marketing strategies for the making customers in UK sure of what brands they
should go for and what can give them advantage of over shopping from those
stores (Lorette, 2019).
These key factor underpin the opportunities and challenges for Mark & Spencer in UK.

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Recommendation
from the above analysis, Marks & Spencer has made a excessive progress, getting various
difficulties. It is recommended that:
 In today’s competitive business environment, M&S should implement optimal
strategies such as differentiation strategies, cost leadership strategies and
objectives accumulation strategy to achieve a stronger competitive.
 Reduce human and material costs by discovering out of the country cheap labors,
improve their value of service, and give complete play to their creativity.
 Use 5C analysis method of situational analysis for gaining more information on
micro and macro environment factors within the environment as it provides
information of company, competitors, collaborators, context and customers.
 Ansoff matrix must be used to identify and evaluate the marketing situation which
is theories of marketing (Hunt, 2014).
 Use of market penetration concept for identification and evaluation of dynamics
and trends within the marketing environment.
Conclusion
From the above analysis, it is to be concluded that Marks & Spencer is a leading retailer of
clothing in UK. In excess of 21 million customers go to their stores each week. However, in
modest market environment, new marketing strategies are relatively important to take the
competitive advantage and satisfy the needs of customers. They make new strategies with the
help of STP model in order to clearly identify the segmentation, targeting and positioning of
clothing segment in M&S to support the newly developed strategies for marketing. By analyzing
and evaluating the external environment with the help of PESTEL and SWOT analysis helped
the marketing manager in identifying the factors that widely affect the market of M&S. The
appropriate recommendations were made that covered marketing strategies and tactics in order to
satisfied their marketplace needs and built its market share. The result through analysis and
discussion give useful assistance to retail industry in UK.

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