Marketing Management and Sustainability Strategies

The provided assignment details a comprehensive study on marketing management, emphasizing sustainable strategies and their impact on supply chain management. It draws from academic sources, including books and journals, to provide insights into marketing management in industrial markets and the role of green marketing in promoting sustainability.

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..................7
3). Competitor analysis of three industry players.....................................................................10
4). Marketing mix actions to achieve gaps between marketing strategy and external
environment...............................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................16

INTRODUCTION
For a business organisation it is required to use different strategies in order to reach on
direct customers and market segmentations. Through this, they can easily achieve target goals,
maximise sales and getting higher growth. This procedure basically uses to maximise customer's
values, improve their opinions and enhancing organisation's perceived values (Kotler, 2015).
Through this an organisation can build their own image, positioning and goodwill in target
market. In this process, marketing manager play a most important to implement possible
strategies for new creations, advertising, promotional activities and maximise sales to getting
long term benefits easily. This report is based on Mark and Spencer which is a British
multinational retail firm. This organisation was established in the year of 1884 by Sir Michael
Marks and Thomas Spencer. This firm basically deals in clothings, home products and luxury
food services. This organisation has approx. 979 stores in world wide. So for them it is require to
use impactful marketing strategy for market positioning and unique selling proposition to create
positive image in several countries. For this they can use Marketing audit and competitor
analysis to examine potential for market growth. In this procedure, Marketing mix actions is used
to achieve gaps between marketing strategy and external environment.
1). Background statement, market positioning and unique selling proposition
Marketing management is a effective procedure that helps to analyse company's
resources and activities to attain desirable targets. All these approaches are beneficial for new
product development in target market. For retail industry, it is important to make effective
marketing strategy to build direct and appropriate connection with customers. For this, marketing
manager uses different strategies for build effective image of product in front of target
consumers. These activities are beneficial to enhance growth and sales of products in target
market. Mark and Spencer is one of the fastest growing organisation in retail industry. They uses
different and creative plans to build their own market share easily (Malhotra and Peterson,
2015).
Background of Retail industry – In a country, retail industry is vital that provide their
effective contribution in economy development and growth procedure. Main objective of this
industry is to selling quality goods and services to target customers through multiple distribution
channels. Through this they can easily earn higher profit and desirable growth as well. Retail
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industry is one of the fastest growing sector that implement new strategies and ideas in their
activities. In this procedure marketing management helps to analyse customer's demand and their
need for specific products and services. Through this, they provide higher satisfaction to their
target consumers to build positive relation with them easily. These marketing strategies helps to
getting long term benefits in appropriate manner. Retail industry provide higher employment
services to skilled and experienced candidates for their career development. Development of
retail industry arises for effective treading process that consisted to purchasing necessaries. Main
objective of this procedures is to maximise monetary values and provide luxuries services to its
users (Wilson and Gilligan, 2012). This industry adopt raid changes through digital technology
by self servicing to online procedures. Their specific motive is to provide quality products and
services to customers on the bases of their requirement and need. In a country, different retail set
up supply their own contribution for economy development and growth. Through this they
provide higher satisfaction to consumers. For example Mark and Spencer is also a multinational
retail firm which is deals in luxuries appraisals for men, women and children. Through this, they
can easily achieve target goals, maximise sales and getting higher growth.
Market positioning – This is a business strategy in which management of organisation
analyse customer's opening and their perception for specific brand and organisation (Belz and
Peattie, 2012). In this procedure, several organisation's uses different strategies and planning to
establishing their own image and goodwill in target market. Through this, a firm can easily
achieve their target goals and objectives.
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(Source:- Bernard Matthews)
Mark and Spencer is s a British multinational retail firm which was established in the
year of 1884. For this organisation, it was hard to build their own market position in specific
country. Their whole share in 1989 was only 55 of whole market position in Turkey. For them it
was to create their own marketing share in several location (Hutt and Speh, 2012). In these
situations manager of M&S create impactful strategy to provide quality products to their
customers on affordable prices. Through this capture consumers eyes toward their products and
services. These strategies provide impactful contribution to develop market share of firm in
several locations easily. After this process, they provide several services to its users for making
money and income easily.
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Illustration 1: Expansion Strategy

(Source:- Shah, 2013)
After some impactful marketing strategies, Mark and Spencer build their effective market
share in front of competitive firms. These activities increase market share of Mark and Spencer
due to creative plans and thoughts as prices of shares have been cheaper and merchandiser
division of firm has improved rapidly (Sheth and Sisodia, 2015. By these activities, firm start
delivering of healthy sales and maximise investors values and funds. Firm easily penetrate in
target and new market by their impactful strategies. This was the beneficial move of
management that provide them specific market positioning, share as well as goodwill. In this
case, general merchandiser sales do not increased as much as they have in past few years.
Income Statement
Revenue (ttm) 10.75B
Revenue Per Share (ttm) 6.62
Quarterly Revenue Growth (yoy) 2.60%
Gross Profit (ttm) N/A
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Illustration 2: shares in Marks and Spencer

EBITDA 1.06B
Net Income Avi to Common (ttm) 184.9M
Diluted EPS (ttm) 11.4
Quarterly Earnings Growth (yoy) 401.20%
Balance Sheet
Total Cash (mrq) 331.6M
Total Cash Per Share (mrq) 0.2
Total Debt (mrq) 2.19B
Total Debt/Equity (mrq) 76.08
Current Ratio (mrq) 0.69
Book Value Per Share (mrq) 1.78
Cash Flow Statement
Operating Cash Flow (ttm) 988M
Levered Free Cash Flow (ttm) 561.56M
Valuation Measures
Market Cap (intraday) 5 5.04B
Enterprise Value 3 6.6B
Trailing P/E 27.25
Forward P/E 1 11.26
PEG Ratio (5 yr expected) 1 -6.91
Price/Sales (ttm) 0.47
Price/Book (mrq) 174.65
Enterprise Value/Revenue 3 0.61
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Enterprise Value/EBITDA 6 6.22
Unique selling proposition – This is a strategic approach of an organisation in which
they build creativity and uniqueness that differentiate a product from furthers competitors. For
this management of an organisation uses different methods as quality servicing, cost effective
methods and promotional tools to attract and convinced customers to pay attention toward their
services. In this case, Mark and Spencer uses different tools and techniques to capture
consumer's eyes toward their own services. For this firm can use different ways of Unique
selling proposition as-
 Requirement of Unique selling proposition – For an organisation, it is require to analyse
requirement of this procedure in their business. Through this analysis, they can easily
getting higher competitive advantages in target market. These activities helps to making
creative approaches in their organisational activities (Chan, He and Wang, 2012).
 Create impactful strategies – After analysing requirement of these procedure, firm needs
to build impactful and effective strategies to build customer's loyalty for their
organisation. In this process marketing manager provide their own contribution to analyse
customer's requirement and need for specific product and services.
 Build an ideal customer – Mark and Spencer is a British multinational retail firm which
provide quality services to their users on specific cost. For them, it is require to build
positive and effective relation with ideas consumers by providing appropriate products to
them on the bases of their requirement and need. Through this they can easily getting
long term benefits and growths as well.
 Leverage uniqueness – For a retail organisation, it is require to serve quality and unique
products to their consumers. Through this they can easily convinced them to switch
further brands be as a loyal customers of their services. For this they need to provide
them cost effective and unique services that can easily capture their eyes. Mark and
Spencer always uses these kind of activities by providing quality in clothes and further
items beyond the expectation of its users (Liu, Kasturiratne and Moizer, 2012).
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 Implement effective ideas – For Mark and Spencer, it is require to implement innovative
ideas and creative thoughts for providing higher satisfaction to customers. For this, they
analyse customer's requirement and new trends to implement them effectively in their
business activities. These are the beneficial approaches of Unique selling proposition.
These activities enhance firm's growth and income as well.
2). Marketing audit, overall market attractiveness and potential for market growth
For a business organisation, it is require to analyse each and every element that are
related to marketing services. Through this, they can easily understand customer's requirement
and their need for specific services and products. Mark and Spencer is a Well known British
multinational retail firm, that provide luxuries clothings to their customers. This organisation has
various stores in different countries. For them its is require to make proper research on target
market by auditing methods that provide appropriate information regarding customer's opinion
and views for their products and services. Through this they can easily make effective
modification and alteration in their business activities. These activities helps to build effective
image of organisation in target market to build proper and positive relation with target
customers. In this process marketing management procedure of firm provide their own
contribution to analyse each and every element of target market properly (Moutinho and Vargas-
Sanchez, 2018). Mark and Spencer require to make proper market audit to getting information
of each and every element as -
Market Growth rate – Mark and Spencer is one of the fastest growing organisation in
trail sector. This organisation adopt several changes in their services from 2010 to 2017. as per a
specific research, this firm generated 10.5 billion British pound as revenue in both UK and
international level. Dividend growth rate of organisation is 2.40% in march 2018. Mark and
Spencer established their new stores in several countries by specific growth and revenues. Firm
covers a effective area of market by their own products and services. In this procedure effective
marketing strategy of organisation helps them to build appropriate connection and relation with
customers to grow rapidly in world wide.
Year ended Turnover (£ M) Profit before tax (£ M) Net profit (£ M) Basic eps (p)
01/04/17 10622 613.8 115.7 7.2
02/04/16 10555.4 488.8 404.4 24.9
28/03/15 10311.4 600 481.7 29.7
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29/03/14 10309.7 580.4 506 32.5
30/03/13 10026.8 564.3 458 29.2
31/03/12 9934.3 658 489.6 32.5
02/04/11 9740.3 780.6 598.6 38.8
03/04/10 9536.6 702.7 523 33.5
Market share – Mark and Spencer is a multinational organisation that provide their
services in several countries. They have approx. 976 stores in world wide. Firm always uses new
and creative ideas to make impactful mortification in their clothes and further services. Firm
implement advance technology in their working procedure top getting higher benefits.
Market size – In marks and Spencer, there are large number of employees around 84939
who are doing work for achieving desired goals and target of the firm. Its total net income in the
year of 2017 is approximately 115.6 million euro and their operating income or revenue in this
2017 year is around 690 million euro (Mudie and Pirrie, 2012).
Market segmentations – Marks and Spencer also segmenting the whole market of
demographically so that their customers who are different age groups, ethical groups, various
genders and social class can purchasing the firm goods and services. The company has
developing and formulating their creative brands, food, stores and clothing for compliance in the
mind of various marketplace segments.
Market attractiveness factors- For a business organisation, it is require to analyse
different factors that helps to bring customers attention toward their products and services. There
are three major factors of Marks and Spencer market attractiveness such as market forces,
competitive intensity and market access. This involves growth and market size, buying power,
number of rivals, substitutes, channels access, customers familiarities and sales requirement for
the company.
Market and sales forecasting analysis – In the year of 2017, the Marks and Spencer is
expected to report the renewed towards reducing the clothing and home-ware products. The firm
sells the food which has been forecasting by 14% fall in the income price in the year of 2016-
2017 that reflect towards lower sales and high the cost of employment (Zimmerman and Blythe,
2013).
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Supply chain analysis – Supply chain analysis is one of the essential techniques and
method which help in providing products and services packages required by end users. In this
analysis, they are required different suppliers in all over the world. Marks and Spencer is one of
the leading retailing company who have around 20 million customers visiting their stores and
shops.
Market trends – It can be describing the current market position among different competitors at
the large market place. In the year of 2017, there are more customers who are attracted towards
marks and Spencer company products and services.
Physical distribution channels – Marks and Spencer distribution channel has both stores and
non store setting appropriate media channels such as advertisement, social media, promotion,
public relation, sale promotion and tele shopping. Physical distribution channels includes all the
major functions or activities related with rendering of finished products at each stage from
manufacturing step to end customers. There are various other physical distribution channels such
as order processing, packaging, transportation, inventory control, customer service and logistics
and materials.
Market attractiveness factors –
 McKinsey model – It is the major tool and techniques which analyse company design by
looking towards 7 key internal components that includes strategy, structure, systems,
shared value, style, staff and skills which assist in recognising the effective align and
organisation allow to achieve desired goals and objectives (Dekker and et. al., 2013).
These are as follows:
◦ Strategy - This is that plan which has been developed by marks and Spencer to
accomplishing the sustained competitive benefits and also this activity should be
completed in large market place.
◦ Structure - It will represents the source of business department and its unit are
conducting and this involves the major information who are liable for them. In simple
terms, structure can be analysed as organisational chart of the company.
◦ Systems - System are the effective procedures of the firm which identifying the
business operations and regular activities and determine how they will be made
accurate decisions.
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◦ Skills - These are the ability and capability that company workers performed in better
manner. It includes employees competence and capacity while doing work.
◦ Staff - This is that components which determines with which and how many
employees required for an organisation (Desbordes, 2012).
◦ Style - In this, style presents the way where firm can be managed by top managers
and analyse their reaction on each action.
◦ Shared value - This is the core of McKinsey of 7s model. They are the major rules
and standards which provide guide to employees behaviour and organisation actions.
3). Competitor analysis of three industry players
For a business organisation, it is require to analyse their competitor organisations to make
effective and impactful strategy to build their appropriate positioning in market. Mark and
Spencer is a largest British multinational retailer which faces strong competition from several
industries as Aldi and Tesco. These both organisations are multinational retailer. For Competitor
analysis model of Porter's five forces is used to ascertain the competitiveness of market through
presence of such organisations as -
Porter's five forces Mark and Spencer Aldi Tesco
Threat of New Entry Mark and Spencer
faces these kind of
competitions in market
by the new entries of
an organisation. New
rivalries decrease
valuation of firm and
its growth as well. For
this Mark and Spencer
always uses strong
strategy by providing
quality services to
their customers on
attractive and
This is medium
because entering in
retail sector need high
amount of capital thus
no firm can easily
enter in this industry.
Some of the new entry
can make strong threat
but firm uses effective
and impactful strategy
for their quality
services (Meffert,
2013).
Tesco faces strong
competition from new
entry in similar
industry. These
organisations provide
their effective services
to customers on low
cost. These kind of
things attract
customer's easily
toward their new
services.
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affordable prices. In
clothing industry, it is
hard to establish
effective market
position for new
entries and
organisation. Thus
threat of new entry is
low on mark and
Spencer.
Threat of Substitute Substitute products
and services reduce
customer's
requirement for
specific organisation.
In cloth retail industry,
lots of retailers are
deals with foreign
imports by providing
low cost services to
consumers. These kind
of activities can be the
biggest threat for
M&S because low cost
services easily attract
customers.
Many organisations
are there and who is
serving same kind of
goods. Thus, there is
high substitute threats.
In this sector number
of rivalry are low
because customers
wants to get quality
products and services
as well (Gellynck and
et. al., 2012).
In food industry,
customers always
wants quality services
at any cost. It can be
harmful that a firm
provide similar
services to customer
that consider low
quality. Tesco always
provide quality
services to its user, so
for them threats of
substitute is low.
Power of customers Customers in retail
and clothing industry
play a most important
role because some of
it is high because there
are several companies
in this industry if one
is offering at high
Tesco provide their
effective services in
several countries.
They have strong
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the buyers are either
wants fashionable cost
on any cost of wants
classic cloths in
appropriate price.
These activities has
direct impact on Mark
and Spencer because
they provide quality
products at a standard
cost. So it is hard for
all class of customers
to afford these cost
easily.
prices then customers
easily switch to other.
Customers are not too
much loyal.
chain of loyal
customers who are
believing in their
products and services.
Some times firm uses
cost effective services
to attract target
customers easily.
Power of Suppliers Suppliers has power to
create manufacturing
cost of their products
easily. M&S uses
direct purchasing and
selling process, so they
has low suppliers who
provide services in
several countries.
Their own employees
are provide products to
customers according to
their requirement and
need (Preston, 2012).
It is low because there
are several suppliers of
raw material which is
needed for day to day
activity of business.
Firm requires to have
experienced suppliers
who provide their
effective and
manageable services to
customer. They are the
individual who can
easily manage cost of
services and products
as well.
Industry rivalry This organisation faces
strong competition
ALDI have high
competitive rivalry
Firm faces strong
competition by the
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from substitute
products and
organisations. They
also faces strong
competition due to
new firms are enter in
market or at similar
location. They provide
fashionable clothings
on similar cost to their
users. So these process
can be a threat for
firm.
because this sector
have large number of
companies. Most of
the organisation are
selling same variety of
products but their cost
is different which
create high
competition.
rivalry of food and
grocery retailers. This
firm faces direct
competition by ASDA,
Waitrose and
Sainsbury's.
4). Marketing mix actions to achieve gaps between marketing strategy and external environment
Marketing mix of marks and Spencer analyse and identifying the brand which involves 7Ps such
as price, product, place, promotion, people, process and physical evidence. These are explained
as under:
 Product - Marks and Spencer is the famous and popular retailing company which is
located in united kingdom (Barile and et. al., 2012). The product portfolio of company is
cover in wide range items for all the age groups whether they are men, women and kids.
The firm will offer different types of goods and services for women which attracting
more new customers towards their services and commodities.
 Price - Marks and Spencer has been follow competitive pricing strategy in their
marketing mix for their portfolio of effective products in better manner. The company are
prefer that value or cost which are best suitable for all standard of people whether they
are lower, middle and high class. By this, they will attracting large number of domestic as
well as international buyers in easy manner. They are providing various types of products
and services to their desired customers at reasonable rate.
 Place - An organisation is the multinational brand which has been get more than 1000
stores that are operating and regulating in all over the world. Marks and Spencer is the
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main business operation and its functions in the united kingdom in which firm has around
850 stores and shops. The company has getting their own sites from which customers are
purchasing innovative and creative goods and also delivery this to customers at home.
They are also providing an alternative for globally distributing their effective goods and
services among various types of customers.
 Promotion – It is that method of marketing mix where firm will adopting and using
different promotional tools which help them in spreading awareness of their company
goods and services at large market place. Marks and Spencer emphasising to giving them
common message on all medium term of communication. There are various promotions
tools and methods that are used by firm such as advertisement, social media, TV ads,
print media, sales promotion and many more. An organisation using their personal sites
for promoting their brands, clothes, women, men and children products. This marketing
method assist firm for attracting large number of customers towards their creative
products and services in the market place. Marks and Spencer also promote its sale to
their loyal buyers who are providing them special offers and discounts in better manner.
 Process – Mark and Spencer is well known retailer organisation which is working
through effective and impactful working procedure. They basically make their full
concentration on target market to analyse customer's demand, new marketing trends,
changes in fashions and consumer's requirement. Through this, they provide quality and
desirable services to their users. Their main objectives is to provide higher satisfaction to
customers by their services (Saren and et. al., 2012).
 People – Mark and Spencer has approx. 946 stores in several countries. They are
basically uses appropriate strategy to get connected with customers to provide them
higher satisfaction easily. They adopt digitalisation in their business activities to get
connected with international users. These are the beneficial organisational strategies of
M&S to build positive relation with people to getting long term benefits easily.
 Physical evidences – Mark and Spencer make several strategies to capture customer's
eyes toward their services. In this process, they recreate their stores and provide attractive
facilities in them to consumers. They provide various facilities in their stores as well
furnished, sitting arranged, parking facilities, mineral water and food facilities to provide
high class adeptness easily.
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CONCLUSION
As per the above report it has been summarised that for a firm it is require to analyse
several elements which are related to target market. Through this they can easily analyse
customer's demand and their requirement. After this, firm can easily provide them quality
products and services. Marketing management is also a functional procedure helps to analyse
company's resources and activities to attain desirable targets. These activities helps to build new
market image of several products and services as well as develop market penetration easily form
firm. For a firm it will be beneficial to build positive relation with target customers to getting
long term benefits easily.
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