Market Screening for Marks & Spencer's Expansion into Myanmar

Marks & Spencer is seeking to expand into new markets post-Brexit, with a focus on designer dresses in Asia, South America, and Africa. This presentation conducts a market screening for M&S, analyzing factors such as cultural analysis, risk analysis, and competitor analysis. The chosen countries for expansion are Venezuela, Myanmar, and Mozambique, with Myanmar being the focus of the presentation. The presentation includes a SWOT analysis, APM model, BCG matrix, and market segmentation table.

MARKS & SPENCER
ENTERS MYANMAR

CURRENT MARKET POSITION

INTRODUCTION AND CONTEXT
• Marks & Spencer is seeking to expand into
markets post Brexit.
• Product chosen: designer dresses
• Markets: Asia, South America and Africa
• Market expansion to diversify costs and
business risks.
• European operations becoming
unprofitable.
• Need to cut costs.

AIM OF THE PRESENTATION
• To conduct market screening for
M&S
• Problem statement: M&S is
seeking new markets beyond
Europe to enter post Brexit.

REASON FOR EXPANSION
• New sources of revenue
• New markets to diversify risks.

SWOT OF MOZAMBIQUE, VENEZUELA AND MYANMAR

INITIAL SCREENING-CHOICE OF COUNTRIES:
• Chosen countries: Venezuela,
Myanmar, Mozambique
• Grounds of choice: Emerging
countries

APM MODEL

RISK ANALYSIS OF VENEZUELA,
MOZAMBIQUE AND MYANMAR

BUSINESS PORTFOLIO MATRIX

COMPETITOR ANALYSIS

BCG MATRIX

CULTURAL ANALYSIS (HOFSTEDE CULTURAL
MODEL)
Cultural Factors UK Culture Venezuela Myanmar
Power Distance Index Equal power distribution Centralized power
distribution
Equal power distribution
Individualism vs.
collectivism
Collectivism is prioritized Individualism is
prioritized
Teamwork is preferred
over individualism
approach
Uncertainty avoidance
index
Workplace environment
is free flowing
Opt for stick code of
rules, guidelines and
laws
Flexible workplace
environment having less
stringent rules

CULTURAL ANALYSIS (HOFSTEDE CULTURAL
MODEL)
Cultural Factors UK Culture Venezuela Myanmar
Masculinity vs.
femininity
Slightly male dominated
culture
Highly male dominated
culture
Equal power provided to
both male and female
employees
Long-term orientation
vs. short-term
orientation
Adaptive and
circumstantial
Tradition is honored Tends to adapt
innovative ideas
Indulgence vs. restraint Free gratification for
human desire
Having strict norms and
control gratification for
human desire
People love to enjoy life
and have fun

MARKET SCREENING/RANKING MODEL
Weighting Venezuela Myanmar
Market
Attractiveness
Market Size 35% 7 (2.45) 8 (2.80)
Market Growth 40% 6 (2.40) 8 (3.20)
Disposable Income 15% 5 (0.75) 9 (1.35)
Taxes 10% 7 (0.7) 6 (0.6)
Total 100% 25 (6.3) 31 (7.95)

MARKET SCREENING/RANKING MODEL
Weighting Venezuela Myanmar
Ability to Compete
Product fit to
market demand
40% 6 (2.4) 8 (3.2)
Pricing 20% 5 (1.0) 7 (1.4)
Culture 15% 5 (0.75) 8 (1.2)
Competition 25% 4 (1.0) 8 (2.0)
Total 100% 20 (5.15) 31 (7.8)
Overall Total 45 (11.45) 62 (15.75)

FINE SCREENING (12C MODEL)
12C Factors for Myanmar Explanation
Country •Huge economic development
•Enormous political issue
•Increasing corruption
Currency •High fluctuation rate of currency against UK currency
Culture •Collaborative working culture
•People are inclined towards fashionable life
Control and Coordination •Marks and Spencer will avail highly skilled and educated people in Myanmar
•Advanced transportation system of Myanmar will lead to effective control and
coordination
Concentration •Most of the people are concentrated into urban area
Commitment •Supportive legal and regulatory framework for international business

FINE SCREENING (12C MODEL)
12C Factors for Myanmar Explanation
Communication •Communicating in Burmese language can be tough for M&S in
Myanmar
•Advancement in digital media can be useful for effective promotion
Choice Adequate availability of local suppliers and consumers
Channels of distribution Adequacy of suppliers helps in building retail network
Contractual Obligation Customer are fully aware of retail advantage and willing to pay to retail
shopping
Capacity to Pay Economic growth has increased the purchasing power of the people in
Myanmar
Caveats Less restrictions imposed on the foreign companies

MARKET SEGMENTATION TABLE
Segmentation Explanation
Geographical Segment •Urban people
•Rural People
Demographic Segment •Age: 18-60 Years
•Gender: Both male and female customer
•Income: Medium to high income group customers
•Education: Educated people
•Marital Status: Both single and married people
Psychological Segment Having positive attitude towards life
People having modern lifestyle
Positive personality oriented people
Behavioral Segment People seeking additional benefits within products
People having high brand loyalty
Targeting •Medium to high income group customers
•Customers having high brand loyalty and modern lifestyle
Position •High quality products
•Fashionable cloths
•Fresh foods
•Discounts available

BUYER BEHAVIOR
• Brand Influence: Effects the people having high inclination towards reputed
brand
• Social Influence: Inclination of people towards luxurious life influence them to
shop from retail shops
• Psychological Influence: Such behavior leads customers to purchase based on
prior experience of shopping

COMPETITOR ANALYSIS
Competitive Factors Marks and Spencer Gamone Pwint
(Competitor 1)
City Mart Holdings
(Competitor 1)
Products •Cloths
•Luxury Food products
•Home products
•Cloths
•Accessories
•Home products
•Supermarket
•Pharmacy
•Bakery
•Books and Music
•Club
Price Price will be less than
other competitors
Price is less than City
Mart Holdings
Price is higher than
competitors
Market Share Nil 25% (FY2016-FY2017) 40% (FY2016-FY2017)
Competitive Advantage High quality of products Less price Premium quality of
products

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