Retail and Marketing Management Analysis

The provided document offers a comprehensive analysis of the retail sector in the UK. It includes research on customer relationship management, the marketing mix, and risk analysis. The content is based on various studies and casebooks, providing insights into successful marketing strategies and retail market trends. The document aims to provide valuable information for students and professionals interested in retail and marketing management.

Marketing Management

Table of Contents
INTRODUCTION...........................................................................................................................1
BACKGROUND INFORMATION................................................................................................1
MARKET AUDIT OF M&S...........................................................................................................3
REVIEW OF THE MARKETING MIX OF THE COMPANY.....................................................7
CRITICALLY DEFENDED NEW MARKETING MIX................................................................9
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Marketing management is the business activity or the process which getting the right
goods or services or ideas to the right people at the right place, time, price by using right
promotion techniques. It happened through different promotional goals. Present study will be
focus on marketing management or explain how the marketing function can help business to get
success in the market. However, study will be choosing chosen Marks and Spencer which is
British multinational retail company situated in UK. It specialises in selling high quality
clothing, home products and food products among the UK market and across the different places
of the country as well. Therefore, study will outline marketing audit in order to determine the
company actual position in the competitive market. In addition to that, research will be going to
explains t marketing management and how they reliable for the company success.
BACKGROUND INFORMATION
Overview of the Retail Industry
Retail sector is one of the profit earning sector that involves the process of selling goods
to consumers through multiple ways to earn or maximize the profit. Retailers fulfils the
consumer demands with the help of supply chain (Blythe and Martin, 2019). In context of UK
economy retail sector
plays a most vital role that contributes in the economy to growth the business opportunities.
Retail industry generated £395 billion revenue of retail sales in 2018 and also housed 319000
retail businesses (Overview of the Retail sector in the UK, 2019).
In other words, retail sector basically sales the products or services that are mostly for the
use or consumption, rather than for resale. It encompasses shops, department stores,
supermarket, market stalls, door to door sales people and internet retailers. Retail sector has
plenty of opportunities, from dealing with day to day customer care and generating sales to
influencing and making the high customer attraction.
Retail industry needs often changes in the business in order to maintained the innovation
and competitiveness in the market (Boshyk ed., 2016). new innovation and also brings the new
opportunity and objective to take the better goals and objectives. Furthermore, retail sector also
very helpful to gain the market opportunity and provides the best source action plan and brings
the better goals and opportunity to take the market more enhancing. In present era retailers also
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increase their business online and gain the huge market opportunity. Online retail business
becomes the most profitable business nowadays that rapidly grows in the market environment.
In order to develop the market, nowadays Retail companies have started investing in
technologies and innovation on the company websites. Websites make everything easier, quicker
and cheaper and putting the lost of efforts in order to develop the challenging measuring task.
For food retailers the invasion of mega discounters’ companies such as mega-discounters Aldi
and Lidli these two retailers are known for it blown their sector to pieces and build up the new
entirety pricing metrics.
Company Overview
Marks & Spencer started their business in 1884 with one stall in an open market in Leeds,
Yorkshire which is known as a Marks' Penny Bazar. M&S produce and deals with household
items, toys, sheet music, etc (Brigham and et.al., 2016). Thomas Spencer. Then after M&S
launched new stores in different markets. In 2001 company almost opened 300 retail outlets in
the United Kingdom. Buyers of the company are very happy and satisfied in terms of dealing
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Illustration 1: UK Retail Sales Growth
(Source: Overview of the Retail sector in the UK. 2019)

with the company atmosphere. Such as the current company revenues of 2018 is £10.7 Billion
and 84,621 employees.
MARKET AUDIT OF M&S
The main purpose of conducting market audit is to evaluate position of company in the
competitive market. Marketing audit helps in understanding current trends and threats involves
market. Marketing audit also helps to interpret company aim and objectives which also helps to
discover new marketing objectives for achieving growth. Here, it provides the marketing audit
of Marks & Spencer to analyse the best growing market trend and get the best output and goals.
The main purpose of this present marketing audit is to outline market attractiveness and ability of
firm to attain market growth (Durmaz, 2015).
SWOT Analysis
Strength OF M&S
High recognition of the brand: M&S is the huge retail brand known for the quality of
product or services provided by the Marks & Spencer. Another reason M&S is popular that it
also gains the consumer attractiveness and brings the high-speed data and technologies to build
up the high-performance in the competitive market.
Wide Variety of Products: This is another strength of the M&S which makes the
company more popular and effective. Along with that, M&S having the huge variety of products
through they satisfied the needs of the consumers in the best performing level. Such as clothing,
electronics, Music. Home furnishing etc. It has more than 1200 suppliers with over 400 different
of product or services in the outlets.
Large number of stores and outlets: M&S having the huge customer reach that helps
organisation to gain the more profit revenue all over the year (Hayes, 2018). It has all over 900
stores all over the world with 600 stores in the UK and 300 in all over the countries. This helps
to increases the strength of the company and enhancing the brand recognition.
Weaknesses Of M&S
Bad Publicity as Non-Trendy Outlets: From the last few years, M&S is losing their
publicity in the market and reduce their market growth due to non-trendy outlets. As per the
market trend and fashion M&S has been leg by the different situation and measure the market
growth opportunity and gained. As per the customer perception they think that clothing material
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and products of men and women are suitable for only aged people not for teenagers and young
people. So that negativity creates the misperception among the customer.
Employment cost: This is another weakness of M&S that backdrop of the following old
techniques rather than the following the new techniques which increases the different aspects
such as money, time, etc. M&S can also focus on the new techniques which makes the better
environment policies and growth. Nowadays, companies are more focused towards the digital
technologies which reduces the cost of money and also influence the different gains and make
the best outcomes and goals.
Opportunities of M&S
Expansion or Internationalization: This is the big opportunity through company get the
profitability and gained the huge market growth. This opportunity can help to gain the global
presence and increase the customer reach (.Iacovone, Sanchez-Bayardo and Gonzalez, 2018).
This is the tool which spread the huge market for the company from the local market to
international market.
Market Segmentation: Market segmentation is one another possibility for the company
to gain another huge market. Market opportunity is the best way to compare the long-lasting
growth and also gain the market trend and gives the proper goals and objectives. Market
segmentation is the process which splits customers in a market into different growth and
opportunity. This opportunity and task can help to define and launching the new techniques
among the all customers in order to sustained in the market and gain the long lasting opportunity
task.
Threats OF M&S
Increased competition: By increasing the concept and level of competition is the biggest
threat for the M&S due to alternatives of product or services. The increased competition in the
retailer sector is a big worry as the other retail competitors such as Tesco, Asda, Sainsbury, Aldi
etc.
so as per the above SWOT of M&S and marketing audit it has been cleared out that
company requires to invest their most of the time to enhance the brand recognition and introdoce
some more unique product or services on order to attract the customer and market demand.
PESTLE Analysis OF Marks & Spencer
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PESTLE analysis is the another tool or model through company can investigate company
non controllable external factors that have the potential to affect its operations. This tool also
very helpful to analyse the company marketing audit (Konur and Geunes, 2018).
Political: Political factor is the high affected factor which generates the uncertainty and
goals. In other words, Political factor also affect the free trade agreements and have led to
decreased sourcing costs. Higher cost structure has disadvantaged M&S in international markets.
This factor can affect the company overall cost. On the other side, M&S is known for its CSR
activities but lack of clarity of UK government on energy efficiency scheme which negatively
affects M&S initiatives.
Economical: Economical factors of the external environment generally affected by the
competitors discounted or their prices. In other words, M&S generally focus on the higher
quality which only let to short term loss and customers which were attracted by the company
quality products. But for M&S 2015 was the good year which helped company to maintained
the good market share and helps to achieve the strong sales in key owned market such as Hong
Kong and India.
Social : Social factor is the another significant factor which affect the retailer includes
changing values in the population and shift to the next generation. Green consumers and
customer ethical concern about the socio environmental are the main concerns of the businesses
that makes the negative impact on the overall behaviour of the buyers.
Technological: M&S is in the good strategic position which brings the good opportunity
for the company in the great context. Technologies and new digital transformation is been given
the positive impact on the overall business which is also very cost effective and less time
consuming process (Luiz, 2016). In order to gain the technological advantage, company required
to invest on the new technologies that helps to give the good outcomes and attract the online
attention.
Legal: Legal action is the another challenging factor that affect the overall business
growth. Legal factors are get highly affected by the rules and regulations that is imposed by the
government such as for retail companies Health and Safety regulations are very important.
Otherwise it would have been given negative impact on the overall objectives.
Environmental: Environmental rules and regulations both are the effective European
and international level which increasing the consumer pressure and more concerning part for the
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organizations. M&S adopted the environmental plan that to the way business is being conducted
the fair activities to gain the the faith of the consumers. For example: M&S should need to invest
on the environmental sustainability in terms of green projects.
However, from the above PESTLE analysis it has been analysed that some factors are
reflects opportunity for the company such as technological, environmental and some of them
involves threats such as political, legal, economical etc.
Five Forces Analysis Marks & Spencer
Porter's five forces model is the tool which defines as a tool of Strategic management tool
that helps to define levers of profitability in a given industry (McDONALD, 2016). The porter
five forces which brings the positive approach in order to met out the different opportunity gain
for the company.
The basic purpose of five forces model is to analyse the competition level of the company and
what external factors affect company environment.
In terms of retail sector there is a high entry barrier as the high capital investments which
is use market cost to achieve cost efficiency and economies of scale that retailers.
Threat of New Entrants
Retailing market has high entry barriers as the capital investments are huge to enter the
market and to achieve cost efficiencies and economies of scale that retailers like M&S which is
difficult to get the new player. In order to reduce the huge impact of new entrants company needs
to invest on the innovation products and services. New products not only brings new customers
to the fold also retained the existing customers. Company can also increase the economies of
scale to reduced the fixed cost per unit.
Bargaining power of Suppliers
Retail industry can also required to maintained the good relation with the suppliers to
settle the good communication level (Medarac, Vignali and Vignali, 2016). In retail sector
suppliers in the position of dominant position can decrease the margins of Marks & Spencer.
Powerful suppliers of the consumer products are negotiate the company in prices. In order to
reduce the negative impact of power of substitute the product or services more effectively.
This can help to motivate by the help of efficient supply chain with multiple suppliers.
Bargaining Power of Buyers
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Retail sector sales the consumer products which having the high demand in the market.
Besides, Consumers also paying money to get the best quality products in best possible manner.
In order to enhance the company market stability M&S requires to innovate products at
skimming prices to grab the M&S product or services. Customers bargaining power is
significant major concern for the company to gain the developing opportunity and goals. M&S
needs to build up the good image in front of the customers to take the good image and good task
building opportunity.
Threats of substitute Products or services
In order to develop the work opportunity and gained the long lasting work opportunity
and goals. Besides, it also helps to maintained the effective and leading generating opportunity.
M&S should need to require continuous development price sensitivity can force the hand of the
retailer (Mokwa, 2017). Company needs to maintained its high position in the market to gain the
effective learning outcomes has many alternatives available. M&S needs to build up its loyalty
and offer its customers and has many alternatives available.
Threat of Competitive Rivalry
In retail sector competition level of the company is very high for clothing, fashion
products, or for the food products. Now competition level is high in online sector as well. So
over that, M&S required to build the positive online lead to attract the number of buyers and
attract the number of customers goals. Such as loyalty membership cards etc.
REVIEW OF THE MARKETING MIX OF THE COMPANY
Marketing mix is basically a tool which help a business to a large extent. It helps to
analyses the brand which mainly cover 7 P's and helps to achieve the goals and objective of the
business. Below is the marketing mix of Marks and Spencer's -
Products – Marks and Spencer is very popular and it is the top retail chain. It cover all
the items for different group of people such as men , women and children. It offer clothing g
product such as blazers , cashmere , jeans and top (Palmatier, Stern and El-Ansary, 2016). Also
it offer footwear for women with wide variety and also various types of accessories. It offer
home and furniture section home accessories.
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It has bee reviewed that the products that are offer by the Marks and Spencer's are very
effective and are of great quality which helps Marks and Spencer's to gain competitive
advantages.
Price – Marks and Spencer follow competitive pricing strategy. As it is very trust worthy
brand which offer medium to high price with excellent quality. And also during the seasonal time
the company follow dynamic pricing strategy in which the brand provide various kind of
discount on products to attract large number of customers. In this old stock are put on sale. It
help Marks and Spencer's to increase the sales.
It has been reviewed that the pricing strategy has been very effective as it help to gain
the large number of customers and help to increase the sales. It also provide high quality
products in medium prices. And also it has loyal customer base.
Place – Marks and Spencer's is a top brand which got more than 1000 stores which are
operating in more than 50 countries (Phillips and Moutinho, 2018) . It has its major business in
UK.
It has been reviewed that Marks and Spencer's has wide range of products and it is easily
available to the customers without any difficulty. Also it has worldwide presence.
Promotion – It chooses its promotional strategy very carefully . As it promote its
products with the help of advertisement, social media campaign , mobile ads etc. as it help to
attract large number of audiences.
As it has been reviewed that the promotional strategy of Marks and Spencer's is very
effective as it offer many discounts which help to grab large customers. And have a grat
command on online marketing channels.
People – It employees strength is over 83000 as the company pays special attention on
the employees and satisfy them to a large extent and provide training to enhance their skills.
It has been reviewed that the people which are associated to the rand are very loyal as the
company provide positive environment.
Process – The stores of Marks and Spencer's are very attractive and can be found in mall,
sub urban areas. And it process is very simple as it products are easily available.
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It has been reviewed that the process of the company is very effective as it the stores are
divided into floors which has separate section for clothing, gift , accessories etc. and also is
billing system is very smooth (Sivitanides, 2017).
Physical evidence – As it has more than 1000 stores and also sell wide range of products
from clothes to home accessories. As all the stores come in the physical evidence. And also the
company has its own websites from where the customer can but the products.
It has been reviewed that if the company spend more on the packaging to make it more
attractive then it will help the company to a large extent.
CRITICALLY DEFENDED NEW MARKETING MIX
Marketing Mix is the process or the way that helps to maintained the customer
engagement and satisfaction level. By offering quality products, At the good price, place along
with different services of customers. However, In order to gain the market opportunity and
customer attention it is requires for M&S to gain competitive advantage.
In order to enhance the 10% sales from the online channel company has to reform the
marketing mix with some new changes and modification in order to fill the between the
company existing strategy and external market environment. This system can also help to make
the best efforts and grab the attention from the customers.
Product : Product is the foremost marketing mix on that basis customer get connected
with the company services (Teberga Oliva and Kotabe, 2018). In order to fulfil the aim of 10%
sales M&S requires to offer the new product base with new market segment opportunity. Along
with that, company can also improves the existing product or services to gain more customer
focus. Besides that, competitive product might be particularly strong against some other product
or services. So in order to that, M&S should need to focused on the quality of products to gain
the online sales. Some other ways can also be adopted by the company such as new product
innovation, development along with some new offers etc. In retail sector there are high
competition due to other rival firms which sometimes creates the low attention of the product.
Price : The market leader may have to reduce its own prices in order to prevent
customers from defecting to the competition. This is very threaten for the company when the
issues comes from the lower priced product. However, this strategy can company adopts for
against a similarity priced product advertising some other feature. Generally, M&S adopts the
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competitive pricing strategy for its products. While in order to gain the competitive pricing
strategies company can use the skimming price policies to attract the number of more customers
attention through online channel. Besides, that M&S can also adopts the dynamic pricing
strategy during the seasonal time (Totten and et.al., 2018). Sometimes, By increasing the price
of the product it also means to increase the value or quality of the product or services.
Place : Place is the most concerning part for the customers if company having the limited
outlets. For that, online platform is the more competitive and leading platform where the
company get high sales volume from across the world. Place can meet the customer reach that is
the most beneficial for the growing sales efforts. M&S has its own website from where the
buyers can buy products and get home delivery. M&S also provides an optional for international
delivery for limited products. So that it also helps to make the best efforts in terms of dealing
with good opportunity. To gain market opportunity and target goals it helps to deal and motivates
the new dealing market goals.
Promotion : Marks & Spencer chooses its marketing strategy very carefully so as to
align its advertisement campaign with digital marketing and in store strategy. Generally, the
promotional activities is the most significant strategy to gain the higher opportunity goals and
brings the best advantageous goals to fulfils the aims and objectives. By the help of promoting
business online is the best strategy for M&S to gain the competitive advantage (Totten and et.al.,
2018). So In order to defended the competitors, M&S has to be launch some unique promotional
plan for their online campaign. This will help to get the best and effective outcomes for the
overall process and goals.
By promoting the unique strategy company can solve the online queries and address the
buyers issues by the help of online tools and techniques. However, the present company
promotional channels are TV ads, Print media, Mobile application and social media campaign.
Physical Evidence : In current scenario M&S has more than 1000 stores in over 50
countries in the world. According to sources M&S began the planning to open the next project in
the India in order to expand the business growth. On the other side, M&S having 83000
employees worldwide which has major business is in UK where the company has around 850
stores (Blythe and Martin, 2019). However, Physical Evidence of the brand shows its popularity
in the business and how much customer would love to purchase from that product as well. So in
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order to that, to gain the company profit company needs to build their scope and growth across
the several cities and take the best advantage goals of high sales volume.
Company can sales its product or services via online channel across the world. This is the
new campaign can work for enhancing the 10% sales of the company and brand recognition.
People : People refers to the employees or staff of the company that contributes their
efforts towards the company goals. In other words, to gain online success or market growth
M&S needs to hire or trained employees in terms of learning new advanced technologies.
Through employees can understand the importance of online and solves the query of the
company as well.
In other words,in order to encourage employee satisfaction and performance productivity
M&S can give special training, benefits, salary incentives etc.
Process : M&S found in malls, Individual stores and online platform where the buyers
buy the products and goals. M&S also needs to divide into floors which means they have
separate section for clothing, gifts and flowers, furniture and other home accessories. So this
separate categories can make easier for buyers to buy according to their needs and wants. In
order to gain the sales volume and compete with the rival firms, M&S can adopt expand its
operational function into other countries to meet out the goals and objectives (Brigham and et.al.,
2016).
From the basis of new marketing mix company get help to redefine the brand image and
fulfil the customer requirements into more efficient manner. However, given strategies can help
to fill the gap and meet the external environmental needs.
CONCLUSION
As per the above discussion and the report it has been concluded that, Marketing
management is the beneficial function of the company that helps to gain the market profit and
customer attention. However, the study explained the brief introduction of the company and the
retail sector with the help of some measurable statistics. Therefore, study also discussed about
the company marketing audit by supporting different models such as PESTLE, SWOT, Porter's
five forces model in order to conduct the marketing audit. Study also reviewed the marketing
mix of the company in order to analyse the different target markets. However the aim of the
study is to explained the different long term environment and different market opportunity for
the company growth.
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Phillips, P. and Moutinho, L., 2018. Strategic analysis. In Contemporary Issues in Strategic
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Sivitanides, P., 2017. Retail market analysis for development projects. Routledge Companion to
Real Estate Development.
Teberga, P. M. F., Oliva, F. L. and Kotabe, M., 2018. Risk analysis in introduction of new
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Online
Overview of the Retail sector in the UK. 2019. [Online]. Available
through :<https://www.prospects.ac.uk/jobs-and-work-experience/job-sectors/retail/overview-of-
the-retail-sector-in-the-uk>.
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