Marketing Management: M&S Case Study

This case study explores the marketing audit, market positioning, and competitor analysis of Marks and Spencer (M&S). It discusses the unique selling proposition and new marketing mix actions for the 'Linen clothes' product. The study also examines the overall market attractiveness and potential for growth and development.

Marketing Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Background statement to outline industry, market positioning and present unique selling
proposition...................................................................................................................................3
Discuss about the Marketing Audit (Internal and External), outlining the overall market
attractiveness, whether there is potential for market growth and development..........................5
A comprehensive competitor analysis both for the company and also a chosen product of the
company.....................................................................................................................................11
Defended new marketing mix actions to achieve gaps between M&S present marketing
strategy and external environment for “Linen clothes” product................................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Marketing management is based on the process or method of planning, executing the
conception, pricing, promotions and distribution of ideas, good as well as service in which create
exchanges. Also satisfying the individual as well as personal goals. This documentation will
discuss about the background of M&S in which outline retail industry, identifying the current
position of enterprise in marketplace. It will discuss the market audit in both internal and external
analysis, outlining the market attractiveness whether there is potential way to increase market
growth and development. Furthermore, this report will analysis competitors for M&S and also
focused on the “Linen” clothing which already increases the demand in marketplace. However,
critically defended as new marketing mix actions to achieve the desirable organizational goals,
examining the external environment of “Linen cloths”.
MAIN BODY
Background statement to outline industry, market positioning and present unique selling
proposition
Background-
Marks and Spencer is based on the British multi-national retailer with headquarters in
London, UK. This company was specialises in selling the various kind of clothing, food items
and home products. It is mostly of own label and listed on the “London Stock Exchange”.
Usually, M&S was established in 1884 by two partner such as Michael Marks and Thomas
Spencer. Currently, the company has operated 959 physical stores across UK, including 615
which is not only sell food items but also promotion through television advertising, asserts the
exclusive nature, luxury of beverage or food. In 1998, Company has become consider as first
retailer to make as pre-tax profit with over £1 billion. M&S also expanded their business into
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Canada in 1973, and at one point had forty sever stores across world. Despite various efforts to
improve brand image, position in marketplace.
Market positioning and unique selling proposition of M&S-
M&S has been positioned itself as premium brand in context of supermarket (retail
industry). As consumers are willing to pay premium price for M&S brand so that they will be
setting higher price or cost accordingly. Basically M&S looks to reclaim the best ‘Quality’
positioning to handle the reverse failing clothing sales in marketplace. This company is always
focused on the unique selling proposition which has unveiled as new strategy for its clothing
enterprise (Deepak and Jeyakumar, 2019). The company has been provided the first collection on
the basis of autumn, winter informed by the first commitment in context of quality preservation.
Afterwards, it was announced the various kind of fabric, product innovation for future ranges,
including “Ascolite” button technology. In this way, it can prevent the falling sales in
marketplace.
The unique selling proposition of M&S including values of quality, service, trust and
innovations. These are consistently remained the importance of M&S in context of uniqueness
within selling proposition. In context of Sheer presence, M&S has built as formidable enterprise
that supports for trading within 30 different nations, operate more than 350 physical stores in
UK.
Competitive Environment of M&S-
Marks and Spencer is basically operates in highly competitive environment and its more
competitors in markets. Therefore, the company has been focused on the customer oriented in
which turn into potential need or requirements, market demands. Internal and external
environments are consider the important factor in the business. An effective analysis framework
such as PESTLE that will support for summarizing M&S to make a better strategies, which are
taking into consider both strength, weakness. On the other hand, the strategic tool or platform
which will be used in analysis of M&S through Porter’s five force. This can help to examine the
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different level of profitability and competition for M&S in global marketplace. Identifying the
attractiveness of a market and its competition intensity level.
Porter’s Five force Model-
In context of M&S, the first factor is related to threat of new entrants within Supermarket
industry. Despite that business environment is consider as attractive but at certain point, it has
been identified high level difficulty in term penetration. It would be consider as important
attribute to the strong market condition. M&S has already established the strong brand position
for long time success. Therefore, it become tough for new companies to survive in current
market. Additionally, there are various kind of barriers in the entry but it is likely to change on
regular basis (Gupta and Nair, 2020). Because the demand of potential consumers are changing
and also become high capital expenditure which make it hard for new business to enter in
marketplace. However, it will rise the low price or cost manufactures in market, impose as
significant threat or risk to organization. The major competitors of M&S such as ASDA, Top
shop.
Threat of substitute product in retail industry is becoming higher. In fact, various kind of retailers
provide food and clothing sector. In this way, M&S is greatly concerned about this thing.
Threat of bargaining power among consumers are strong not only for M&S but also entire retail
sector. It means that retail sector has a large number of suppliers, consequently which directly
cause the business within strong competition rivalry. Competition is one of the important factor
which become easier for differentiating the product as well a service. Bargaining power of
supplier is lower because there are different suppliers which can easily replace due to the
availability of raw material by M&S.
Discuss about the Marketing Audit (Internal and External), outlining the overall market
attractiveness, whether there is potential for market growth and development.
A marketing audit is based on the comprehensive analysis of different marketing activities,
goal and objective. Sometimes, it will be implementing an audit which able to determine certain
kind of efforts. Therefore, it can be managed or planned with properly. Usually, M&S can use
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marketing audit and consider as essential factor to assess effective plan, establishing a
coordination with different departments. A Market audit is becoming useful for M&S to get back
into touch with brand, product as well as service (Hitt and Duane Ireland, 2017). The company
has been re-focused on the marketing efforts and use them to remind its initial goals or
objectives. Through marketing audit, M&S will be able to handle the financial crisis as well as
economic recession. In context of marketing mix, M&S is just a place in which different product,
place, price and promotion applicable. In this way, organization has been represented an adverse
effects on the marketing on the basis of advertisement. In order to offer significant brand in
marketplace.
The Marketing audit considers both external as well as internal influences on marketing
planning. These are directly impact on the overall M&S business. Sometimes, enterprises are
subject to find the different forces over which they have limited control on the economic policy.
New technology development, attitude changes among potential consumers. Therefore, it should
require to analysis of both internal as well as external, which influence on the predict the
environment of M&S, when they have to operate in global marketplace.
There are different kind of tools which help for marketing audits such as SWOT analysis
(Internal) and Pestle analysis (External).
SWOT Analysis (Internal)-
M&S has already acquire various kind of strength, weakness which brings motivation or
inspiration to consider competitive advantage in marketplace. Because of high competition level,
there are various factors increases the competition level, also make an effective strategy to
eliminate or remove negative impact as quickly. SWOT analysis is helping tool to identify the
internal analysis for M&S.
Strength-
M&S is a leading retail business in UK, which has begun its retail journey with penny
Bazar but it has made as biggest partnership over across the world. M&S has provided the best
quality of products and services to their potential consumer. Therefore, many consumers are
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preferred to choose M&S brand and purchase various kind of items. Marks and Spencer has
given a special place to the different designer which including innovation in the organization.
Weakness-
The biggest weakness of M&S is their bad publicity as non-trendy store. In this way, it is
to be consider as drawback of enterprise in marketplace. Usually, the company has provided
wide range of product as well as service in global world. Some peoples have a wrong assumption
towards its men or women wear on the basis of aged people (Ketchen and Craighead, 2020). A
wrong assumptions are directly affecting on the business profitability and slow down the
business process.
Another weakness of M&S is manual working which will be increasing price or cost.
M&S can use old technique that will increase demand of both money, time. In general manner,
company is always keeping to focus on the new modern technologies for increasing the
efficiency of workforce. M&S can use modern technologies but it is not properly utilising the
technology in the effective manner.
Opportunities-
Marks and Spencer was stabilized in United Kingdom and also started various number of
physical store all over the world. Company will try to increase trading which include most
effective services. in order to attract more potential consumers in global marketplace. This was
consider as best way to gain more opportunities and increase revenue of business. After some
drastic changes, it is clearly represent as business expansion in market and also come from the
overseas.
Threats-
Increased high competition in area of M&S which become consider as greatest threat of
losing the scope of enterprise. Another way, it can be consider as biggest worry for M&S and
identifying the alternative competitors such as TESCO, ASDA and Sainsbury’s. These are
different organization which have already established their business in marketplace. M&S is still
trying to relay on the mega stores, if similar thing can happen which goes on the certain kind of
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risk, threats (Kotler and et.al., 2018). It is completely losing their business reputation among
consumers. Therefore, it is important to increase the existence of physical store where they can
easily gain more profitable rate in marketplace.
PESTLE analysis (External)-
Pestle analysis of M&S analyses the brand on its current enterprise strategic tactics. By
using this framework, M&S can be examined the external factors such as political, economic,
social and technological. These are directly impacts on the business along with appropriate legal
or environmental aspect. Pestle analysis is based on the one of important framework which help
to the imperative for M&S enterprise. At certain point, it applicable to improve understanding
toward dynamic market and improve overall business continuously.
Here is start the Pestle analysis of M&S as follows:
Political Factor-
While Free trade policies and procedures have been considered as massive political
advantage, benefit for M&S. Nowadays, it is all most overseas physical stores approximately
1500. Nowadays, Economic recession have closed the different stores. It should require to
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applicable a suitable policies and improve the overall business performance. Sometimes, M&S
has expected that recession occurs, which will be followed by hard place tax. Therefore, it will
affect on the brand shipping out of UK (Zhao, Fisher and Miller, 2017). Due to Covid-19 and
economic recession which may lead to the production price or cost for M&S. Afterwards,
company can oversea in either way to shut down stores and also increases their price or cost
thereby losing potential consumers.
Economic Factor-
In this factor, M&S is indeed as retail giant, which already increasingly demand of
product as well as service in global marketplace. In recent times, market trend of UK has been
shifting towards small retailer. In order to provide the lower mark-up price or cost thereby it
allows for M&S to retain its premium status.
However, a large number of population of UK is always preferred to select local physical
store than M&S premium items. Therefore, it will be identified the economic slowdown process
in which directly create as treat of M&S in context of budget stores. The company has not able to
devise which means of combating their recent economic threat or risk.
Social Factor-
In this factor, it has been identified that changing the trends and demand of potential
consumers. M&S is one of strongest household name but due to change of demand. It is not what
one calls a brand for youths. Many individual peoples are associated with brand with past,
without any kind of top to bottom revamp. Marks and Spencer has been projected to lose their
majority of client from its latest generations.
M&S has able to counter this kind of social factor by dominating its current business process. It
has been representing a sharp rise in the consumption of meals across the global world.
Nowadays, the company is already establishing a strong position in food service within UK
marketplace.
Technological Factor-
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Advancement of modern technology has been rapidly changing the perception of every
consumers towards brand. in modern day retail stores are completely changing and also adopting
new technology (Zhao, Fisher and Miller, 2017). It can help them to improve overall business
efficiency and performance. M&S can use as self-checkout based retail in which identifying the
current need or requirement. That’s why, M&S has introduced self-check out store and also
improve their plan to increase use of Artificial Intelligence (AI) based enhancement in future
business growth or development.
Alongside this, M&S has been established an ecommerce store that is quietly effective
within UK. All kind of goods and service can be found on the website and thus, people can also
save their time by shopping through e-commerce site. In this way, it is consider as adoption of
modern technology which may help the brand to make a better stronger presence in recent
generations.
Legal Factor-
The legislations in every nations are changing. M&S has been adopted the suitable
approach to conduct a better training session within different areas such as update, employment
treatment. M&S store is getting being renovated at the time of infrastructure development. But at
certain level, company has failed to address current issues which turned into ethical problem.
Moreover, M&S will use health and safety act 1947 in order to measure all kind of legalise
norms or standards in proper manner.
Environmental Factor-
In this factor, Marks and Spencer have faced the issues related climate change which
being promoted on regular basis. M&S have been established their own green policy that can
support for protecting or securing environment condition. Company have been acted as link for
minimising its disparities within society.
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A comprehensive competitor analysis both for the company and also a chosen product of the
company
The competitors of M&S such as Jagsaw, Sainsbury’s, Tesco, Morrison’s, these are selling
various kind of product as well as service in global marketplace. It is long list of competitors but
M&S is consider as well-known for its clothes. Basically, it has been selected Jagsaw as closest
competitors of M&S. because Jagsaw is consider as tough competitor in context of Linen
clothing. Therefore, it gives a high standards linen items facilities and service of their potential
consumers. Usually, the selection has been made on the basis of comparison between products
for both organizations.
Competitor analysis is based on the process of gathering or collecting information about
the competitive companies with specific areas. M&S is a leading clothing brand but they have
competition with different market segments (Zhao, Fisher and Miller, 2017). According to the
market research analysis, M&S has been include some important points regarding sale increases
with 3.8% in clothing and home or 4.0% in food. M&S has implemented additional features
where consumer can attract towards brand and purchase different product as well as service.
Through this way, it can be established the strong business position among consumers.
In context of competitive analysis, M&S has frequently reporting the expenditure with
price or cost that will provide in the form of particular feedback. Therefore, manager of M&S
can give a proper reaction on the specific data or information which rely on the formal budget
planning. In this way, it become easier to target the potential consumers. For analysing
competitors, M&S management is always believed in collecting and assigning cost data which is
being shifted away from controlled.
Now move towards the Linen clothing, M&S has been provided the best quality of linen
clothes for wide range of women, men and children’s. Many potential consumers are demanding
to purchase linen clothes item through M&S. According to research, it has been analysed that
linen clothing market which primarily focused on the global leading industry player such as
M&S. the have gathered or collected information about the product quality, price, production,
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capacity. In this way, it become easier to analysis upstream raw materials, equipment’s used in
the manufacturing. M&S should also analysed the linen type, outlook and their distribution
channels (Zhao, Fisher and Miller, 2017). Basically, it is focused on the feasibility of new
investment project and reach to the conclusion of retail sector. M&S has been identified the
consumer requirement as recognise what our clients want. Because there are various competitors
who have also provided the Linen clothing items in marketplace. In this way, it is not easy to
fulfil all need of client and also provide the best option rather than other competitors.
According to research study, it has been focused on the market Size of Linen clothing,
which is representing as global Linen clothes sales and revenue by M&S. Typically, it has been
breakdown data from 2013-18. M&S has already expanding their business in the international
markets so that gather or collect the information of Linen clothing in different regions such as
Asia, central & south Africa, Europe etc. to estimate the demand of potential consumers
regarding Linen clothes.
M&S has provided the Linen clothing as offer all years, also given according to the
climatic conditions. The company is also work on its wide range of products and stable the
position to drive growth. Additionally, M&S has compete the other competitors by implement
innovative idea within products. It can use as fashion related Fabric design in Linen clothes
which is always attracts more consumers. M&S is global positioning which may consider as core
fashion and basics with neutral positioning. Therefore, it will also identify growth within small
town, cities. By using Linen clothing, M&S has been established a strong connection with
consumers and give a priorities accordingly.
Defended new marketing mix actions to achieve gaps between M&S present marketing strategy
and external environment for “Linen clothes” product
Marketing mix involves marketing strategy of the company that includes different elements
of marketing. Marketing mix for Linen Clothes of M&S is as follows-
Products- This is concerned with offering of the organisation and products in Linen clothing that
M&S include different types of clothes for both men and women (Blut, Teller and Floh, 2018).
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For both men and women different verities are available that M&S provides. Linen clothing for
men involves Shirts and Pants of different types and styles that are available in linen fabric. In
addition to this in women clothing different types of dresses, shirts, pants are sold by M&S. This
means that M&S has a big range of product offering in linen clothing that can cater needs and
requirements of people with different requirements and taste in terms of clothes. This can be
used to attract different types of customers with different requirements and wants (Thabit and
Raewf, 2018). Linen products are based on and are offered in latest designs and trends in fashion
to attract younger generation and millennial customers.
Price- Price is concerned with monetary value of products that customers pay in exchange of
buying products. This plays very important role in ensuring customer satisfaction regarding
products that they buy. Price strategy for M&S and linen clothing and this strategy adopted by
organisation is value based price strategy. This is because value based price strategy will help in
communicating higher quality of linen clothes of M&S and will also ensure that customers can
afford linen clothing of M&S. Along with permanent value based price strategy M&S can also
utilise discounting price strategy to attract customers to buy customers. Discounting strategy also
helps in strong competition with low cost competitors of M&S and as well as linen clothing.
Place- This is concerned with point where buyers and sellers connect with each other. This plays
very important role in distribution of products to customers. Place strategy for M&S’ linen
clothing involves distribution of linen clothing through online and offline channels (Wu and Li,
2018). This means that linen clothing will be available at all stores of M&S and will be
exclusively showcased to attract customers. In addition to this linen clothing of M&S will also be
available online specifically through direct search and also through website and on website of
M&S, it will have different section that will specifically showcased under Linen Clothing
section.
Promotion- Promotion is concerned with practices through which organisation promote sale of
their products. There are different strategies that M&S can utilise to promote Linen clothing in
M&S. In order to promote its linen clothing M&S should highlight its linen products in its
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promotional activities on different digital and social media platforms. In addition to this M&S
also can launch a new campaign on social media and under its digital marketing that is based on
its linen clothing. This will enable M&S to attract attention of customers towards its linen
clothing for men and women.
People- This element of marketing is concerned with people aspect of marketing. In order to fill
existing gap in present marketing strategy and external environment it is important that it has
right type of and number of people (Ndofirepi, Farinloye and Mogaji, 2020). M&S employs best
employees available in job market and then they are provided effective training and development
opportunities. In addition to this, employees are provided training on timely basis in order to
keep them relevant and prepare them for dealing with future challenges as well as changes in
external environment. Along with this, in order to ensure motivation of employees it is important
that they are well paid and effective working environment is provided to maintain their
satisfaction.
Physical evidence- Physical evidence is concerned with elements that reflect how business
wants to be seen. This is very important that physical evidence of the product is appealing to
customers. Concerned with linen clothing of M&S it is required that physical evidence reflect
quality and value. Physical evidence for Linen clothing is clothes that reflect their quality and
material. Along with clothes different tags that are attached to clothes also suggests that clothes
are of linen and in addition to this bills provided also serves as a physical evidence for Linen
clothing. This means that there are several elements associated with linen clothing that serves as
its physical evidence.
Process- This is concerned with process through business provides products and services to
customers. In order to provide Linen Clothing to customers different types of processes are
undertaken by M&S. This process firstly involves preparing or manufacturing linen clothes and
in order to manufacture high quality linen clothes M&S requires buying high quality raw
material (Stead and Hastings, 2018). In addition to this processes also involve supply chain
through which raw material is supplied into and prepared products are supplied to customers.
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Followed by this retail practices undertake that involves transaction of customers with M&S.
Effective supply chain and transactions are very important to maintain quality and value of
process.
CONCLUSION
On the basis of above discussion, it can be concluded that M&S has managed to maintain
strong market positioning and unique selling proposition of M&S is involved in its values that
are quality, trust and innovation. Later report discussed internal and external environment for
M&S and this was followed by analysis of market attractiveness of M&S. Internal and external
environment was analysed through SWOT analysis and Pestle analysis. On the basis of analysis
it can be concluded that M&S operates in a very challenging market and environment. This is
because market has several opportunities for M&S but at the same time there are several threats
for M&S. Concerned with internal environment of M&S there are strength with M&S that
support and complement in utilising opportunities however there are threats that creates
difficulty in utilising opportunities. Later report involves competitive analysis for M&S and for
Linen Clothing that is a product offered by M&S. In order to fill gap in existing marketing
strategies and external environment marketing mix was developed in report.
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REFERENCES
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Kotler, P. and et.al., 2018. Marketing management: an Asian perspective. Pearson.
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Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
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