Marketing Report: Analyzing Marks and Spencer's Strategies

This report presents a comprehensive marketing audit of Marks & Spencer (M&S), a British multinational retailer. It begins with an introduction to marketing management and its application to M&S, followed by a brief overview of the company's history, current market position, and competitors. The core of the report is a detailed marketing audit, including a PEST analysis of the political, economic, social, and technological factors influencing M&S. The report then examines buyer behavior, market segmentation strategies (demographic, geographic, psychographic, and behavioral), and target market approaches. It also explores M&S's positioning strategies, including functional, symbolic, and experiential positioning. The analysis aims to assess M&S's current marketing performance and suggest potential improvements in areas such as market segmentation and strategic alignment to enhance its competitive advantage. The report concludes with a summary of findings and recommendations.

Marketing
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................4
Marketing Audit of M&S ......................................................................................................4
Research on market segmentation .........................................................................................5
Marketing strategies ..............................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing management is an art in which organisation choose a specific market and
attract the customers by providing value of money to them. It is a strategy which is implemented
by the organisation for satisfying the needs of customers through which the firm can increase
their sales and revenue along with maximizing the profitability and defeat the competitors in the
marketplace. It also guide the management in making a plan of action which will enhance the
marketing performance of the firm. On the other hand, marketing is a process of making
relations with customers and satisfying their needs with providing value of money to them. The
chosen organisation for this assignment is Marks and Spencer which is a British multinational
retailer that was established in 1884 in Leeds, UK by Michael marks and Thomas Spencer. This
project will discuss about the current performance of the organisation along with its current
marketing strategy and position in the marketplace. Market segmentation, buying behaviour of
customers, Market environment and targeting strategies will also covered in this report.
MAIN BODY
Brief Introduction of firm- Marks and Spencer is an organisation which engages in
retail sector and have an long experience of more than 100 years. It is a British multinational
organisation with headquarters in west minister, London. It provides variety of products such as
clothing, home products, furniture and food products to their customers. According to the
financial report, the company have earned 10.7 billion pound revenue in the year of 2017. The
company gave emphasis on the quality of products due to which their brand image is increasing
on regular basis. Organisation is providing their products and services in more then 50 countries
across the world (MAHM, 2017). Company has more then 80000 employees who are providing
their services in these nations. In current scenario, company has grow their business in online
sector. They have launched their new websites in various countries in order to increasing their
customer base in these nations. The main competitors of M&S are Primark, Aldi, Tesco plc etc.
who gave tough competition to the firm in marketplace. M&S provide a variety of products and
services to their customers due to which they have achieved competitive advantage in the
marketplace. The current position of the firm is #2 in the UK market. Therefore, the management
of M&S have decided to conduct a marketing audit for improving their position and customer
base in the marketplace.

TASK
Marketing Audit of M&S
Marketing audit – It is defined as a review of the current plan, objectives and activities
which are performed in a firm. In other words, it refers to an analysis, evaluation and
interpretation of marketing plan. With the help of this audit, management can identify the
weaknesses of the firm and find opportunities for improving them. As company wants to modify
their existing plans and strategies for the marketplace therefore, management have to conduct a
marketing audit which is given as under:
PEST analysis
Illustration 1: What is PEST analysis ?
Source: What is PEST analysis?. 2018
Political – This part is related with the political conditions of the nation which can affect
the operational activities of firm in positively and negatively manner. The firm is mainly
operating their business activities in UK market So, the free trade agreements and European
integration of government has motivated new market and firms of other nations to invest in
Europe which affects sustainability and productivity of M&S.
Economical – It is related with economic conditions of a country which can affect the
buying behaviour of residential in positive and negative manner. The present economic situation
of UK is favourable for the firm as the interest rates are down. With the help of it, firm can easily
expand their business in new market places (Shaw, 2016). Management of M&S has to focus on
clothing line because most of the youngsters expands their 70% of income on clothing products.
It will increase profitability of the firm.

Social- it is connected with interest and behaviour of the individuals which can adversely
affect the plans and policies of M&S. As company is providing a huge variety of products to
their customers which build loyalty of them. It would be profitable for the firm in upcoming time
through which they can easily invest in new marketplaces of Asia along with traditional and
western clothing products (What is PEST Analysis, 2018).
Technological – This factor is related with technological advancement which helps firm
in achieving huge sustainability and growth. The retail sector of UK has witnessed the changes
of technology in terms of e-commerce, shopping websites, applications and many more. Which
increases the uses of shopping websites in the industry. Therefore, Online websites and
marketing will helpful for the firm in achievement of competitive advantage in global markets.
BUYER BEHAVIOUR – Buyer behaviour is defined as study of an individual or a
group of individuals who are related with the purchase of product, use and disposing the same. It
also include the mental and emotional behaviour which are used by them for completing this
activity. In addition to this, it is an act of individuals who spends their time and money for
obtaining a good and services. In the context of M&S, their marketing team have to provide
those products to their customers which can fulfils their needs and wants. With the help of it, the
loyalty of customer will be increased and they will more attracted towards the offerings of firm.
Management of M&S believes in fair pricing and affordable pricing policy so that, they have to
innovate their existing products so that, their position in the marketplace will be improved and
they can get competitive advantage. The targetted customers of M&S are lower and middle level
of income groups who wants to buy products at low prices so that their needs and demands can
be fulfilled. Therefore, managers of M&S have to analyse such kinds of customers and make
products and their prices accordingly due to which, they will get huge customer base in the
future time.
Research on market segmentation
Market segmentation – It is a procedure in which firm categorised the market and
customers in various types such as on the basis of their income, needs, characteristics etc. with
the help of this, organisation can analyse the needs of customers and they will able in using of
resources in effective manner. In addition to this, if organisation wants to introduce a new
product they have to segment the market in various levels. Managers of M&S have to use this
because they are providing a variety of products in various nations so they have to analyse the

requirements of different segments (Xue, 2018). Types of market segmentation are defined as
under:
Demographic- In this type, the population has been categorised on the basis of gender,
income level and ages. It helps the management of M&S to analyse the needs and demands of
targeted customers according to their features. For example- company has adopt fair pricing
policy for the lower and medium income level customers.
Geographic- In this, the market is divided as per the locations and places where the
target customers are living. It assists the management of M&S to find out the demands of target
marketplace if the demand of product is high that they can easily introduce their products. For
example- M&S has targeted Indian market for selling traditional clothing products where the
demand of these type of product are always high.
Psycho-graphic- In this, the categorisation of targetted customers is depends on their
lifestyle, standard of living etc. It assists the management of M&S in differentiating the people
on the basis of their lifestyle so they can deliver their products in easy way. For example-
western garment products are highly demanded in UK market so they can increase their
supplying of product in specific marketplaces (Moutinho, 2013).
Behavioural- in this the targetted customers are separated on the basis of buying
behaviour and brand loyalty towards offering of a particular firm. It will assists the managers of
M&S in supplying their product in such places where the demand of products are high. For
instance, the UK customers who wears regularly western garments so they have to provide these
type of products which will increase the loyalty of such type of customers.
From the above four type of segments, M&S mainly targets geographic and psycho-
graphic segments with an objective of increasing sales and revenue in the clothing business.
Market segmentation as per age group – M&S is a well established brand in all over
the world which offers commodity and services for every groups like children, adults, women
etc. Market segmentation is very beneficial for the firm to analyse the information which is
related with the preference and requirements of the customers. For this, data base marketing is an
effective tool which can be used by the firm for market segmentation. Through using this tool,
managers will easily create a huge data base of customers and provide products according to
their requirements.

Market segmentation as per income group- Price is most crucial element which can
influences the market segmentation of cited firm. The changing prices can reduces the sale of
products as most of the customers are having middle and low income group. Therefore, company
have to make effective and affordable pricing policy so they can attract these type of customers
easily towards their offerings. The market segmentation has four types which are explained as
under:
Reasons of targeting such two market segmentation:
Geographic- As the managers of M&S has make affordable pricing policy for attracting
customers who have lower and middle income level
Psycho-graphic- Western clothing products are always in demand in UK market due to
which M&S have to adopt such segment for achieving huge customer base along with revenue
and sales.
Targetting strategies – These are the strategies which are made for customers to whom
the firm wants to sell their goods and services. This kind of strategy includes segmentation of
marketplace and select the segment which is appropriate for the firm. In the context of M&S, the
marketing manager have to analyse the market trends and needs of customers through which they
will able in making proper strategies for selling their products in a specific marketplace. For
example- The target customer of M&S are middle and lower class individuals so that they have
to make products accordingly and adopt promotional tools so that they can spread awareness
about the product to targetted customers.
Positioning strategies- This strategy is focuses on the reviews of product and services in
the compare of competitors. These kind of strategies are based on the perception of customers if
a product can't satisfied their needs and wants it will go out from the marketplace but if the
product will fulfil the demand of customers it will provide competitive advantage to the
manufacturer. In this strategy, main focus of company is to create a favourable image of product
in the mind of customer so that they would prefer to buy that product rather than switching it for
another substitute. Positioning strategy is divided in three parts such as:
Functional positioning- In this kind, the manufacturer makes products with focusing on
all aspects through which the needs and demands of consumers can fulfilled. In the context of

M&S, the production department have to introduce those products in the marketplace which will
fulfil the needs and demands of their customer and provide competitive advantage to the firm.
Symbolic positioning- This kind is based on the characteristic of a product through
which the self esteem needs of customers get fulfilled. For example the leggings and jeans of
M&S which attracted the customers towards them and fulfil the self esteem needs of customers
Experiential positioning- In this strategy, the manufacturer have to understand the
desires and needs of customers and make products accordingly so that they can make different
products in compare of their rivals. In the context of M&S, marketing team have to analyse the
needs of customers and guide the production team to make changes in their existing products
which will help them in gaining competitive advantage in the marketplace.
Marketing strategies
Marketing is defined as providing satisfaction to the customers with offerings of the firm
by using various functions such as promotion and distribution of products to the clients in well
manner. For this, M&S have made a large number of marketing strategies for enhancing the
interest and buying behaviour of the customers along with aware them about newly developed
goods and services. Some of the marketing strategies are described as under:
Current and Future strategies of marketing
Current strategies – The current strategies of marketing which are used by managers of
M&S for making huge customer base are given as under:
Restructuring of marketing team- As the competition is high in the marketplace
therefore, the managers of M&S has decided to provide training to their marketing team through
which they can transform them from generalist team into specialists. With the help of it,
Marketing department provide supports to the management in decision making towards sale of
the products with getting satisfied reviews of the products from the customers.
Marketing mix of M&S:
Product – M&S is the well known brand around the world. It provide products to their
customer which are eco-friendly and quality in terms. They are providing a huge variety of
products such as beauty, clothing, furniture, home accessories etc. The offerings of the M&S
includes sandals, bags, wallets, sunglasses, jackets, blazers etc. (Marketing mix of Marks and
Spencer, 2018).

Price- The company is believing in fair pricing. When they increases their product's
prices they provide discount and cashback to their customers due to which the loyalty of
customers are maintained.
Place- The company has a huge marketplace in which they operates their business
activities. There are more than 900 outlet across the UK and around 84939 employees who are
providing their services in the firm.
Promotion- As company has a huge market presence in the world so they believes in fair
marketing they uses various promotional tools for promoting their products such as pamphlets,
hoardings, TV advertisements etc.
Future strategies
Pricing objective strategy- This is an effective strategy which affects firm in both
manner such as positively and negatively. For example- if the management of M&S provide
products to their customers on high prices it will move their customers towards rival's products.
So company have to make an effective pricing strategy due to which the customers will loyal
towards offering of the firm for a long time period.
Marketing campaign – The Managers of M&S will use this in future for enhancing their
sales figure and revenue. It will assist the managers of M&S in spreading awareness about their
new products and services due to which the productivity and profitability will be increased of the
firm. In this they will use promotional tools such as T.V advertisements, Social media platforms
etc. with the help of it, they will improve their position in the marketplace.
In current scenario, company have started their functions in Financial sectors with an aim
of making huge customer base along with profitability. Company focuses on two market
segments such as Geographic and psycho-graphic. The objective behind this is to provide
financial support to the middle and lower income groups so that they can purchase their clothing
products and food products. It provides benefit to the company in terms of sale and revenue
directly.
Brand image
Brand image is simply defined as creating a good image of the product in the mind of
customers due to which company can make a huge customer base in the marketplace. M&S has
made their portfolio in an effective manner which is not only attracts the customers towards
offering but also the brand image of company is increases. The brand image of a product is

depends on various factors such as packaging, advertising, publicity and many more. Brand
image basically influence positively to the firm because when the customer will be satisfied with
the product it automatically builds the brand image of firm (Jowkar, 2016). So M&S has already
made a good brand image due to their heavy selling of quality products to their customers at
affordable price.
Branding – As M&S is a well known company across the world which operates their
business in 50 countries such as India, UK, China, South Africa etc. In these nations there are
more than 80000 employees who are providing their services. The brand image of company is
depends on the UK market because 75% of revenue is gained by the company from UK market
which shows the firm is highly dependent on the marketplace of UK. In current scenario, As the
company has move into the online sector which is profitable for improving the positioning of
firm. The customers are loyal and older than the comparison of their rival products. For
attracting new customers management have to make innovations in their existing products with
the help of it, company will make competitive advantage in the marketplace.
CONCLUSION
It has been concluded from the above report that Auditing of market is very essential
because it helps the firm in analysing the market position, competitors and requirements of
customers from the firm. For auditing in effective manner, company have to conduct PEST
analysis, which will guide them in identifying the factors that influencing them in positive and
negative manner. Company have to identify the market segmentation due to which they can
identify the needs of their customers and fulfil them in effective manner. Current and future
strategies will support the marketing team in attracting new customers towards the offerings of
firm.

REFERENCES
Books and Journals
Baker, M. J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Cavallone, M., 2017. The TES Marketing Mix. In Marketing and Customer Loyalty (pp. 83-126).
Springer, Cham.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
de Miguel, S., Bonet, and et. al., 2018. Mushroom yield models and regional forest management
scenarios based on long-term monitoring of fungal production in Catalonia, Spain.
Jowkar, A. A. and Mehrad, A., 2016. ROLE OF MARKETING AT ORGANIZATION.
Jung, H. U., Lee, H. W., and et. al., 2017 Samsung Electronics Co Ltd, 2015. Display screen or
portion thereof with generated image. U.S. Patent Application 29/455,316.
MAHM, A., 2017 DETERMINANTS OF CORPORATE ERFORMANCE: A STUDY ON
FURNITURE COMPANIES IN JEPARA INDONESIA.
Moreda, T., 2016. Assessment of beef cattle production, management practices and marketing
system in Lume District of east Shoa Zone, Ethiopia (Doctoral dissertation, Hawassa
University).
Saeedinejad, M. M., 2016. The Study of the Effect of Internal Marketing on Sales Staff
Performance with an Emphasis on the Role of Organizational Commitment. Asian
Social Science. 12(6). p.169.
Shaw, S., 2016. Airline marketing and management. Routledge.
Tissot and et. al., 2017. Bibliometric analysis of publications related to the term ‘servitization’in
operations management. Revista GEPROS. 12(3). p.35.
Xue, J. and Zhang, Z., 2018. The generation process of internal-driven management innovation
in companies in transitional economies: Evidence from China. Journal of
Organizational Change Management.
Moutinho, L. and Huarng, K. H., 2013. Quantitative modelling in marketing and management.
World Scientific.
Online
What is PEST Analysis?. 2018. [Online]. Available through:<https://www.visual-
paradigm.com/guide/strategic-analysis/what-is-pest-analysis/>.
Marketing mix of Marks and Spencer. 2018. [Online]. Available
through:<https://www.marketing91.com/marketing-mix-of-marks-and-spencer/.>.