Marketing Management Report

This report analyzes the marketing management strategies of Marks and Spencer, a leading multinational retailer. It examines the company's background, market positioning, unique selling proposition, and marketing audit. The report also includes a competitive analysis of three industry competitors, Tesco, Aldi, and ASDA, and explores the marketing mix actions taken by Marks and Spencer to bridge the gap between its marketing strategy and the external environment.

Marketing Management

Table of Contents
INTRODUCTION...........................................................................................................................1
1)Background statement, market positioning and unique selling proposition ...........................1
2)Marketing audit,overall market attractiveness and potential for market growth.....................5
3) Competitive analysis of three industry competitors...............................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing management is the management of all the activities and task so that they can
sell goods to customer by the seller (Baker and Saren, 2016). Through this goods can be sold to
various users. Hence as a result they can earn more revenues and can enhance the market share.
It also results in maintaining of good image in front of users and in market. Project describes
about the Zara clothing who distribute various clothes to various customers. It was found in 1975
in U.K. Assignment describes about the background of the company, market positioning and
present unique selling proposition related to the company. It also describes about the marketing
audit and overall positioning and unique proposition. It also further describes about the
competitive analysis about the competitive analysis of three main competitors. It further explains
about the new marketing mix so that there is no gap between present marketing strategy and
external environment.
1)Background statement, market positioning and unique selling proposition
Marketing management includes various steps so that manager can manage all the
activities and task in the company. Through this they can accomplish their targets and goals. For
retail industry it is very crucial that they can create unique and suitable strategies so that they can
attract many users. Through this they can attract many user's. This also helps them in creating
good relationship with people. Through these strategies and policies they can create unique and
distinct image in market as well in front of all people. Through these policies they can easily
increase their sales and revenues. Marks and Spencer is largest retail firm. It distributes various
retail and household items to customers.
Background of retail industry: In this country retail sector is very crucial as it
contributes to growth and increasing of revenues. Through this it leads to growth and
development of firm. It has different objectives but most important objective is to superior
quality of goods and services to all users. Thus they can target many user's in minimum time.
Hence they can earn more revenues. Marks and Spencer is retail industry so hence they add
many unique and distinct strategies so that they can earn more profits. By using of marketing
management they can monitor the demand and requirements of all customers and then it creates
products and deceiver's services. Thus it can increase the level of satisfaction of target market
(Baker, 2016). Through this they get different advantages. They not only earn more revenues but
they also provide employment opportunities to various people. Thus it can increase the level of
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employment in country. These industries are formed so that they can fulfil necessaries and
satisfy all persons. Main goal is to deliver luxury services to people and earn more revenues
(Charter, 2017). They modify their strategies and plans by evaluating customer needs and
external factors. Thus they can easily expanding themselves through online application and sites.
Hence as a result they can easily expand themselves and can earn more revenues. This also leads
to successfully running of firm. It also leads to growth and success of the economy. For example
Marks and Spencer is also retail firm which can easily increase their sales, earn more revenues
and leads to growth of economy.
Market positioning: In this step marketing manager evaluate the customer needs and
perception and then creates the product. So hence firm creates different strategies and polices so
that they can position as good brand in the market. They can create different plans and strategies
so that they can give huge competition and they can position as unique and distinct brand in the
market. Thus they can create good reputation in target market. Hence Marks and Spencer can
easily accomplish the objectives and goals.
Illustration 1: Bernard Matthews
Source: Bernard Matthews, 2015
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Marks and Spencer is multinational retail company which was found in 1884. For this the
firm has to create different marketing strategies and policies so that they can maintain unique and
distinct position. It is very difficult for the organization to create distinct position in the market
and in minds of all customer's. Their market share was approximately 55 of total market position
in Turkey. For this they try to increase their market share in different share and regions. Hence
Marks an Spencer sold good and superior quality of products to various user's. They sold their
products at less costs. Thus they can easy attract many consumers. Through this they can create
unique position and can give positive impact on various locations. They also tries to produce
different and distinct services to user's. Thus as a result they can easily increase their revenues
and can increase their market share.
Due to most impact policies and strategies they can easily increase their market share and
they can give huge competitor to the other competitive firm's. These activities and tasks can
create unique plans and policies and thus they can maintain effective market share. Their market
was cheaper and division of the organization has improved quality. Thus organization starts
delivery of effective goods and services (Ford, Honeycutt and Joseph, 2015). Due to this they
can create unique market positioning and they can maintain good status and goodwill in the
market as well in minds of all customer's. The general merchandiser had not increasable as they
had increased in past few year (Erevelles Fukawa and Swayne, 2016).
Income Statement
Revenue (ttm) 12.25B
Revenue Per Share (ttm) 7.62
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Quarterly Revenue Growth (yoy) 3.20%
Gross Profit (ttm) N/A
EBITDA 2.06B
Net Income Avi to Common (ttm) 384.9M
Diluted EPS (ttm) 11.4
Quarterly Earnings Growth (yoy) 501.20%
Balance Sheet
Total Cash (mrq) 631.6M
Total Cash Per Share (mrq) 1.2
Total Debt (mrq) 7.19B
Total Debt/Equity (mrq) 96.08
Current Ratio (mrq) 1.69
Book Value Per Share (mrq) 3.78
Cash Flow Statement
Operating Cash Flow (ttm) 788M
Levered Free Cash Flow (ttm) 762.56M
Unique selling proposition: This is a different statement through hiccough company can
maintain unique position in the market as well as in minds of user ((Heding, Knudtzen and
Bjerre, 2015). They use different strategies and policies such as quality servicing and cost
effective techniques and unique promotional tools so that they can increase their sales
(Homburg, 2016). Thus they can easily increase their sales and can increase the market share.
Thus Marks and Spencer use different and unique tools and techniques so that they can attract
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many customers and can easily enhance the market share. Firm can use different methods. The
methods of Unique selling proposition are:
 Requirement of Unique selling proposition: Organization has to monitor the
procedures and techniques so that they can increase the market share and they can easily
enhance market share. Thus they can maintain competitive advantage over other
companies. After evaluating market and customer needs they can create unique methods
and strategies so that they can maintain unique position and they can maintain good
image in front of people and in the market.
 Create impactful strategies: After evaluating the market and monitoring the customer
needs then they can rate different and impactful strategies so that they can maintain good
and unique position in the market and in minds of all user's. This also helps the company
to increase their brand loyalty. Marketing manager give their suggestions so that they can
create unique positions and can increase the revenues.
 Build an ideal customer: Marks and Spencer is British multinational company that
delivers superior quality of products to customers at reasonable cost. For this they have to
create strong and positive image in minds of all the customers . Thus can only be created
if firm builds strong relationship with the customer's. They delivers product according to
user's needs and wants. Thus through this customer gets different advantages and hence it
leads to growth and development of Marks and Spencer.
 Leverage uniqueness: Company has to deliver good quality of products to various user's.
Thus they can easily convince many user's and can create unique positioning in the
market. For this they had to provide cost effective services to all user's and thus they can
easily attract many customers. Marks and Spencer can create different policies and
strategies so that they can deliver superior quality of products and services. Hence as a
result they can easily maintain unique position in the market as well as in minds of
customer's (Homburg, Jozić and Kuehnl, 2017).
 Implement effective ideas: Marks and Spencer has to create unique and different
policies so that they can create unique and innovative ideas and thus they can easily
capture many user's in minimum time. They also use different strategies and unique
approaches so that they can maintain unique position in the market as well as in minds of
all user's (Hutchinson, and et. al., 2015).
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2)Marketing audit,overall market attractiveness and potential for market growth
Business firm have to evaluate all factors which can impact the organization. Through
this they can easily monitor the customer needs and wants of all user's. Thus as a result they can
maintain unique position in the market. Thus they can create various strategies and thus they
create various policies and tries to deliver the luxury clothing. This can be only be done by
evaluating the market needs and wants so hence they can perform proper research and then it can
create various policies to target the young people. They can also use various auditing methods
through which they can easily sell many products in the market. Thus the can make changes in
the methods and techniques. Thus as a result they can easily create unique position and they can
maintain positive image in minds of all young people. Marketing management process helps in
targetting many people and thus they can easily generate more revenues. So hence Marks and
Spencer performs proper research and audit so that they can get knowledge of every factors and
elements. The elements are described below:
Market growth rate: Marks and Spencer s oner of the largest retailer firm. The firm can
create different and unique changes approximately from 2010 to 2017.Approximately they had
earned profits of around 10.5 billion British pound in U.K. and in many international countries.
In month of march in 2018, growth rate if divided of around 2.40%. Through earning of huge
profits and revenues Marks and Spencer can establish new outlets in many different countries.
Through their products and services they can cover a huge market area (Johanson and Mattsson,
2015). Through these, they can create various unique and suitable methods so that they can
maintain unique position in the market. Through this they can maintain strong relationship with
all customer's. Thus they can easily increase the market and they can increase their market share.
Year ended Turnover (£ M) Profit before tax (£ M) Net profit (£ M) Basic eps (p)
01/04/17 11111 888.3 989.35 6.2
02/04/16 1200.4 499.8 452.4 25.9
28/03/15 13225.4 700 881.7 39.7
29/03/14 12309.7 680.4 606 55.5
30/03/13 12635.8 665.3 459 30.2
31/03/12 10000.3 770 550.6 62.5
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02/04/11 9783.6 735.5 780.3 42.8
03/04/10 10000.5 730.9 800 89.5
Market share: Marks and Spencer delivers their services in different countries. So thus
they have approximately of 976 stores in many countries. Company uses new and creative ideas
so that they can deliver superior quality of clothes to various customer's (Kumar and Reinartz,
2018).
Market size: In Marks and Spencer there are different employees around 85000. They
perform in a better and unique manner. Thus they can easily accomplish the objectives. Their
total net income in 2017 is around 115.6 million euro. Their operating revenues are 700 million
euro in 2017.
Market segmentation: Marks and Spencer's divides the whole population in
demographic basis such as age,social class and gender etc. Thus they can generate various
strategies and policies so that they can deliver unique clothes and food to various customer's.
Thus as a result they can easily maintain unique position in market. Thus they can easily target to
various user's.
Market attractiveness factor's: Company has to evaluate different elements and factors
in the market so that they can maintain good and unique position in the market. They can
evaluate 3 elements which are market monitoring,evaluation of competitors and market forces.
There are other factors such as growth size,buying power and different competitors,evaluation of
various customer's and they also monitor the sales in the company.
Market and sales forecasting analysis: In 2017, Marks and Spencer can reduce the
sector of home clothes and can also reduce the clothing products. Thus as a result they tries to
increase their sales. But they found that there is reduction in 14% of income level of all people.
Thus it results in reduction in sales and it can directly increase the cost of employment.
Supply chain analysis: There are the techniques so that they can maintain different techniques
and can deliver good quality of products to various customer's (Martín-de Castro, 2015). They
need different supplier so that they can maintain unique position in market. Marks and Spencer is
biggest retail company which have 250 million customer's who can visit various stores and
shops.
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Market trends: It means the current positioning in various competitors in the market. In
2017 there are various customer's who are purchasing products of Marks and Spencer (Mason,
Kjellberg and Hagberg, 2015).
Physical distribution channel: Marks and Spencer uses different distribution channels
and they can also attract many users. Hence as a result they can use various promotional
techniques such as sales promotion,advertising,direct marketing,word to word mouthing and
public relations. They can also use various physical channels through which product can be
delivered to various customer's. For example they can utilize various channels such as order
processing,packaging ,transportation and other techniques.
Market attractiveness factors:
 McKinsey's model: This tool helps in evaluating various techniques such as strategy,tools
and techniques, system,employees and different skills. Through this firm can easily
accomplish their goals and targets. It has different steps:
1. Strategy: Marks and Spencer has created many unique strategies and policies so that it
can sell superior quality of products to many user's. Thus they can give huge competition
to other companies.
2. Structure: It is the chart of the organization. Thus they can receive various information
and data by taking it from this chart. Hence as a result they can maintain unique
positioning in market.
3. Systems: System are different procedures and methods through which they can operate
various activities and tasks. Thus they can take different decisions. Hence as a result they
can take different decisions.
4. Skills: This is the process through which there can be different employees performing in
the firm. They can evaluate different potential of all employees.
5. Staff: In this number of workers working in the firm can easily be determined.
6. Style: In this organization can be controlled by the manner of the organization. Thus as a
result they can easily accomplish and hence they can evaluate the reactions of all
employees (Moutinho and Vargas-Sanchez, 2018).
7. Shared value: In this step of McKinsey's model all employees can easily perform all
activities and tasks. Thus as a result they can easily evaluate various activities and tasks.
Through these rules and regulations employees can easily be instructed and guided so
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that they can perform all activities and tasks in better manner (Tomczak, Reinecke and
Kuss, 2018).
3) Competitive analysis of three industry competitors
Company has to evaluate the competitor plans an polices so that they can beat the
competitors. Thus they can create unique and effective strategies so that they can beat the
competitor. Marks and Spencer is biggest retailer company that faces many competitors such as
Tesco and Aldi. These both firms are the multinational firm's Hence as a result they can easily
maintain unique positioning in the firm. For the purpose or evaluating the competitors they can
use the porter's 5 forces model and this is used so that they can monitor the market. Comparison
of Porter's 5 forces model of 3 organization are:
Basis Marks and Spencer Aldi Tesco
Threat of new entry Marks and Spencer
faces give competition
through different new
companies in the
market. Marks and
Spencer delivers the
superior quality of
clothes to various
customers. Thus they
can maintain unique
and good position in
the market as well as
in minds of all
customer's. Thus threat
of new entry is very
low and it has less
effect on the Marks
and Spencer.
This is the medium as
company requires
huge market to enter
the market. No other
competitor has large
capital and can easily
enter in the market.
Some companies s a
threat for the company
but it has yo crate
different and unique
strategies so that they
can maintain unique
positioning in the
market and can give
competition to other
firm's.
Tesco faces
competition from
many companies. Thus
as a result they provide
effective and efficient
strategies to various
user's at lesser costs.
Through this they can
easily capture many
users in minimum
time.
Threat of substitute Substitute products has In this power of Threat of substitutes
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decrease the customer
needs and demand.
Thus as a result they
can Marks and
Spencer cannot
maintain unique
position in the market.
As many other
competitors are
providing the products
at lesser costs so hence
it faces many
competition and they
cannot create unique
positioning in the
market.
substitutes is very
high. As there are
different to substitutes
which are delivering
of the goods and
services at lesser costs.
In this number of
competitors are very
low as they provide
good quality of
products.
are very low fir the
Tesco a there are less
other competitors
which are providing
good quality of
products. It provides
good quality of
products and services
to different customers
and other user's.
Power of customer's It is high as there are
different customers
who can deliver good
quality of products a
lesser costs. Thus as a
result they can it has
drastic impact on user
as they deliver quality
of products at high
costs. So it is difficult
that classes can easily
afford these products.
It is high as there are
different competitors.
In this customers are
not loyal to the brand
as they only charge
high quality of
products at lesser
costs. A different
companies charge
different prices so
hence user purchase
these products which
are available at lesser
costs.
Tesco delivers
efficient strategies so
hence they can
determine maintain
unique position in the
market and in minds of
all the customers. Firm
is using most cost
effective strategies so
that they can deliver
good quality of
products to customers.
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Power of suppliers Supplier has created
various policies and
they have power that
they can fix the costs
of all the products.
Marks and Spencer
uses selling process so
hence they hire less
suppliers to sell
different products in
the market. Thus as a
result they can satisfy
needs and wants of all
users through their
employees and
through their selling
process.
It is considered as low
for the company.
There are various
suppliers which are
required for all
activities and tasks in
the company.
Firm need educated
and experienced
suppliers so that can
deliver good and
effective strategies to
all user's. These
suppliers can easily fix
reasonable price and
they can easily manage
all costs of all the
products.
Industry rivalry Company faces huge
competition from other
substitute companies.
They face competitor
as many new
companies are entering
into the market. They
deliver fashionable
clothes to various
user's at lower cost.
Due to this company
can face huge threat
from the company.
Aldi faces high
competition from other
companies as retail
sector have many
firms. Most of the
firms are selling
different products at
different costs. So
hence as a result they
faces huge
competition.
Company faces huge
competition from
other competitors as
they faces competition
from food retails and
other grocery shops.
For example they faces
huge competition from
the ASDA.,Wait rose
and Sainsbury etc.
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4)Marketing mix actions to accomplish gaps between marketing strategy and external
environment
Marketing mix include the different elements so that they can maintain unique position in
the market (Weinstein and Pohlman, 2015). Thus Marks and Spencer uses marketing mix uses
product, price, place and promotion, people, process and physical evidence. Marketing Mix of
Marks and Spencer are explained below:
 Product: Marks and Spencer helps in creating different variety of products in the market.
They create products according to the age and sex of population. They produce products
of all age groups such as men, women and other age groups. Through variety of items it
can capture many customers in less time. Thus they can easily satisfy the customers.
Through this they can become very popular in many countries.
 Price: Marks and Spencer is using a particular pricing strategy that is competitive pricing
strategy so that they can easily satisfy the customers. Company is delivering all the
products and services at some reasonable costs. This cost is affordable for all whether the
person belongs to lower, middle or upper class family. Through this they can maintain
unique position the market and they can earn more earnings. Through this they can give
tough competition to its rival firms.
 Place: It is the biggest company which is operating the operation's and activities in all
countries. It has approximately around 1100 stores in various countries. Marks and
Spencer has around 900 stores and shops in various countries. They also uses different
applications and various sites so that they can easily sell different products in the market.
Thus customer can receive innovative and distinct products from various customers.
Through this they can deliver various services in various countries.
 Promotion: It is the method and process through which company can easily sell and
promote various products in the market. They uses different promotional methods and
tools such as advertising, sales promotion, publicity, advertisements through television
and direct marketing so that company can easily sell their products. They also sell
grocery items through their online applications and they can satisfy all needs and wants
of children, young adults and women. To increase the sales and promotion company can
give different incentives and discounts to existing customers who are very loyal to the
company (Wensveen, 2018).
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 Process: Marks and Spencer can modify their products and techniques so that they can
deliver effective services to all users. They creates different strategies and continuously
so that they can give superior quality of products and services to all users. Thus as a
result they can easily maintain good image in front of all customers. Hence they can
easily enhance user's satisfaction (Wirtz and Lovelock, 2016). Thus they can maintain
competitive edge over other companies. Through using of effective process company can
easily maintain unique position in country.
 People: Marks and Spencer has various stores in the country. So hence as a result they
can easily maintain good image in market. The uses various different and unique
strategies so that they can motivate employees. They can give different rewards to all
employees so hat they can motivate all workers. Hence as a result they can maintain good
relationship with all employees who are working in the company. Thus they can receive
different advantages by company. By using effective process firm can easily deliver
efficient services to all people.
 Physical evidence: It includes different process and methods so that it can give good
layout of the company. They create a different design for all the customers and hence
they can easily attract many customers. They also provide effective services to different
customers such as good parking facilities and providing the mineral water to all
customers . They also provide services such as good and delicious food and classy stores
so that it can capture many customers in less time (Witt and Rao, 2015). Thus firm can
enhance their revenues and thus it become very popular in the market.
CONCLUSION
From the above report it has been concluded that marketing management is very crucial
for every company. There is different and unique background and unique selling proposition of
Marks and Spencer. Marks and Spence had performed an audit and determine those areas so that
they can easily increase their revenues and they can enhance the market share. Through this firm
can also determine those areas where they needs improvement. Company has created a unique
marketing mix so that it can deliver effective services to all users. Through this it can increase
the satisfaction level of all users.
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