This document provides a comprehensive marketing audit for Marks & Spencer, including an analysis of the internal and external environment, SWOT analysis, and PESTLE analysis. It also discusses the marketing mix and new marketing mix actions for the company.
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MARKETING MANAGEMENT
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TABLE OF CONTENT INTRODUCTION...........................................................................................................................3 About company............................................................................................................................3 Marketing Audit...........................................................................................................................4 Marketing mix.............................................................................................................................9 New marketing mix actions.......................................................................................................10 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................13
INTRODUCTION The competition among service providers is increasing rapidly in all the industries which are why it is very important for the organizations to understand the competition so that functional goals can be achieved in a better way.There are strategies and planning which have to be done so that the organization can get a competitive advantage and higher profit margins. Marks & Spencer group plc are from the retail industry which its headquarter situated in London. The report is going to consist of the internal and external analysis of market so product can easily penetrate in the market. About company Marks and Spencer is huge organisation that operates its business in retail industry to cater needs and demand of maximum number of customers that are living in UK and other countries. It is a one of the leading multinational enterprise having headquartered in London, England that was established in 1884 by Michael marks and Thomas Spencer. Company deals in specialised clothes, home care and personal care products in order to satisfied wide range of customers needs and earn profitability.There are 959 stores of marks and Spencer across UK and among them 615 stores are just deals in food products. Company have employed more than 80000 people across its various stores so that qualitative products and services can be render to customers within limited time and cost. Blue harbour, Rosie, M&S collection, Per Una and M&S energy are some of the brand in which marks and Spencer deals so that standard and qualitative products can be delivered to customers. Marks and Spencer have been founded in partnership between Michael marks and Thomas Spencer that that helped in better contribution of fund, arrangement of resources for smooth operation of enterprise(Terho and Jalkala, 2017). Company have made its strong reputation in retail industry in 20th century by selling only British made products and services to wide range of customers. M&S have made strong relationship with British manufactured in order to get qualitative products at reasonable rates and company have launched brand named St Michael in 1928. Top management of company have put emphasis on maintain quality of products and services so that customers can be provide better experienced. Company have changes its technologies and products and services as per recent trends in customer’s preference so that it can grow and sustain its business in competitive environment. Marks and Spencer have increased its presence in online sites so that customers can easily make
purchase while staying at their home. Therefore it lead to increase in overall profitability, market share, sales volume and customers satisfaction of Marks and Spencer.It is also able to retained existing as well as new customers range through expanding its business on online sites and launch of organic products to explore the requirements of consumers which are highly concerned about their health.Marks and Spencer operates in retail industry that is continuously growing in recent trends due to increasing demand of customers and number of competitors in the market. Supermarkets are large stores that have wide ranges of products for each customers range so that they can easily select particular products to satisfy their requirements(Jabbar, Akhtar and Dani, 2019). Marks and Spencer have convenience stores that provide essential products and services to people at reasonable rates so that they can be influenced to make more and more purchase. Company have well established infrastructure and products are arranged in systematic order so that customers can find products without wasting much of their time, efforts and energy. 24 hour customers care services is provided by Marks and Spencer so that problem or grievance of individual can be resolved within limited time and company can maintain maximum customer’s satisfaction. Thus, it can be illustrated that effective marketing strategies of M&S have helped in better operation of business and achievement of specific goals. Marketing Audit It is very essential for organization to analyse the internal as well as the external environment so that there is a better performance and planning of organization. The frameworks which would be used in further report are SWOT for internal factors and PESTLE analysis for external factors. SWOT This is a very powerful tool which can be used by businesses so that they can plan their strategies accordingly which are going to be affective in nature. Strengths Market experience-There are a lot of competitors in market like Starbucks, GAP and other companies in market which are making company have a lot of changes and maintain the market capture(Salo, 2017). It is because of the experience that the organization is having a better functioning in market which is a very important factor.
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Trends- There is emerging trends which are coming up in the organization like the technological change so that the quality and the demands of the customers can be matched by the organization. Technological changes like digital payment facilities, automatic process, etc. Online- Socially the customers have shifted to online services which are why Marks and Spencer are having higher profit margins. This is helping company to save on cost and time which is a great factor for company. Brand recognition- Quality of the products is high which is why the company is having loyal customers in organization. There are unique features as well in the company and the latest trend and demands of the customers are also followed which are making the company have a great advantage. Weaknesses Manual cost-The M&S is using old methods and technique to manufacture the clothing line which is making the company has a restriction on them for the functioning. The government is changing the restriction and laws for the labour as well so that there is a better functioning. The wages of the employees have to increase and the number of employees working in M&S is 80,000 which are affecting the functioning of the organization. Sales decline- There was more than 14 stores which were shut down by the company in 2017 and the company could not get the expected revenue because of which the company went in loss(Rust, 2019). The company did not maintain their customer base because of this factor and the company lost their customers to other retailers in the market. Supply chain- The online store which the company has opened is not so profitable because the company is not being able to maintain that. The company is globally established themselves but the demands of the customers are not being able to be met on time which is a very important factor. The supply chain is making the company not get up their reputation in the market which they built for themselves. Opportunities Online opportunities-There have to be a lot of promotions which can make the organization get a great opportunity for association. The customers are going to get more varieties and more options online so that the organization can have a better functioning
which is going to help the organization get higher profit margins. The company can get a competitive advantage which is why the company is getting online so that they can serve the customers globally which is a great factor for the cowpony to get more attention and reputation in market(Barbu, Buzoianu and Margina, 2017). The company will be able to get loyal customers in organization which is going to help company get a lot of skills and revenue. Demands-Company’s product is very popular in Asia which is why it is very important for the organization expand in those countries. There is a traditional wear which the Asian’s prefer which have to be maintained by organization which is going to help Marks & Spencer to have higher profit margins in the market. The design and quality of products will have to match customers of that location so that the organization can get higher customer and market share for organization’s long run in market globally(Yang and et.al., 2020). International expansion- Company can expand themselves in Russia, Indonesia, etc so that the company can have higher customers base.There are new targets which have to be made by the organization so that organization can capture bigger bazaarby planning effectively. Threats Competition-In market the competition is increasing and it is very important for the company to be able to maintain that so that company can maintain their profit margins. There are trends which are changing and the competitors follow those which can make M&S lose on their base which has to be well maintained. M&S has been in this industry from 136 years which is why the company has a large reputation and customer base which has to be maintained effectively therefore there are a lot of change which are taking place(Kalekaand Morgan, 2019). The company will have to analyse the competitiveness in the market and plan their methods and strategies accordingly so that there is a better functioning of the organization in bazaar. PESTLE There has to be an effective monitoring and on the external factors of the environment so that there is a better functioning of organization in the market. This factor is not in control of
organization but can help the company to develop an effective method and strategy for institute to follow so that association can have a better functioning. Political Factors The political parties are stable in country which is a great advantage for the organizations long run.There are free trade policies which organization has come up with so that there is a better functioning in bazaar. Company is having low cost for the trades which are taking place in the company which ismakingthecompanyhaveahealthyprofitmarginforalongruninmarket. Government wants more businesses to invest and the unemployment rate is going to fall in the country because of this factor which is a very important factor(Đorđević, Ćoćkalo and Bogetić, 2016). Government is not getting in many changes but whatever change came the company is going to follow them affectively so that standing of organizationcan be maintained. Economic Factors The GDP of country is improving which means the customers will be able to pay more for the good quality which the organization is producing for them. This is good for company since profit margins of company is going to improve and the organization will be able to function efficiently in market. There are a lot of job opportunities which are also being created by M&S in the market and the country’s life style is going to change with time. The company has to make a lot of investment so that they can match the expectation in the country of the customers in the market(Pevzner and et.al., 2017). Social Factors The trends did not match the standards of the customers which is why in 2017 the company did not do so well.It is very keys for organization to be able to have an effective functioning and understand customersas well so that the profit margins can be maintained. The demands are also increasing which can be a great advantage for competitors in the market as well which is why the company has to maintain their customers in organization so that organization can havehigh profit limits. Company has to maintain their value and the products of the organization so that the company can have a better functioning(Gregory, Ngo and Karavdic, 2019). High
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standardsoforganizationhastobemaintainedbecauseM&Shasgotthatfor organization in so many years and the company has a lot of investment in other countries as well which is why the profit margins have to be maintained. Technological Factors The organization will have to keep track of the raw materials and the delivery which are reaching the customersso that organization and clients of the company are aware of the products.Technology can help the inventory to be managed and it make organization achieve better execution. There is a lot of advanced technology which is being used by M&S so that there is functional improvement in services. Itisveryimportantthatthemanualworkingmustreduceinthecompanyand technological aspect is higher so that customer demands can be met every time which strengthen the better reputation in market(Asonitou and Vitouladiti, 2017). Legal Factors Customers get right which organization must have so that there is a better impact of M&S on the customers. For example, company is providing the customers with return policies which are making the company have better reputation and also loyal customers in association as well which isa very important for the organization to have. There are no discriminations which are taking place for the employees as well so that the internal environment can be healthy which would help M&S to have an effective productivityandoperationsinthemarket.Theworkersarethebackboneofthe organization and must be given their rights so that business can get a competitive benefit very quickly(Tafesse and Skallerud, 2017). It is because of 2017 loss the organization had to lose a lot of skilled and experiencedemployees in firm as well which is not good for the productivity. Environmental Factors The company haseffective disposal methods and techniques which the organization has come up with so that they can have an improved operation. There are a lot of eco-friendly methods which company has come up with so that there is an improved functioning.This factor delivers company to have a better reputation and recognition in market.
Climate is affecting the company in transportation and if the company has takes the right measures according to the government policies then the organization will be able to contribute to the climate change(Chari and et.al., 2017). The delivery of the products is going to be done time and organization will be able to have an enhanced functioning. Products of company have to reach customers on time otherwise the organization will not be able to satisfy and make the customers stay in the same retail. Marketing mix There are multiple factors which must be taken into consideration by company to work upon so that they can get their reputation again high in bazaar which is a very important factor forcorporation(Omar,2017).Companyhaslostalotofcustomersoveryearswhich organization will have to get back therefore the organization will have to make sure that they understand the customers well. There are different wants of different people and company did not understand that factor and the company will have to understand their needs and trends as well so that they can get a competitive advantage. Promotional strategies of organization will have to change because of the traditional method which was being used and online is a great way through which the company can get back their reputation in marketand help company to be able to grow. The promotional methods which were being used by the organization have to be worked upon because there is a lot of competition in market which wants to be worked upon by business. The company willcontainto open more stores again so that they can gain the confidence of the customers again. Over the years the company has faced a lot of down fall which is a great experience which the company has gained but the competition in the market has increased over this time.Company must find new and effective approaches throughwhich the company can gain back their reputation in the market. The prices of the products are higher than the GDP of the people which is why there are limited faithful customers in organization which company will have to work upon so that they can get a better place for themselves in bazaar(Shen and et.al., 2019). The product of the company has always been maintained to the standards and an expectation of the customers which is a very good factor for company and that is going to help the organization to have an effective market base.
New marketing mix actions It is because of the bad performance of M&S are launching another product in the clothing line which the company is having and that is for the people who are interested in sports, the sportswear. This isan extremely important factor for the company to get a spirited advantage in the bazaar so that association can have a better operation. Price Organization will have to price their products low for the new sportswear the company is coming up with which is a skimming strategy so that they can gain back trust of clients in the organization which is a great method. There has to be a target which organization has to reach only then company will be able to attain those.Customers have to feel comfortable with the company so that better performance can be achieved and it can help company have an improved revenue generation. Pricing has to be according to competition in the market after the company gets back their faithful clients in company and this is going to be very helpful. Teamwill have to promote only then they will be able to get back their reputation and market share back to normal which the company lost in 2017(Tafesse and Wien, 2018). Product The company is not being able to get in changes according to the customers so fast and effectively which is what complain is from the customers. The products which the company are coming up are a very good factor for the organization but the most attractive product is the sports bottle which is a connection with the customers yet again. This is a very unique feature for the organization and the company will be using biodegradable bottles which is a very eco-friendly and cost friendlymethod which would be used by association(Brown, Crosno and Tong, 2019). This is going tohelp company get their reputation in market back up and this is going to make the company get a aggressive benefit very quickly in market as well. Promotions There are several approaches which promote the products and can be used by M&S to make their product a success in the market. Thereare old and new methods but the company will have to use both but focus more upon the new methods for promotions because the society has shifted to them very quickly. Social media is the best platform for promotion which can attract the right customers as well as make them order online which can increase the sales of the organization. There are blogs and articles which can also be very helpful for organization to make consumers
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aware of emerging changes which firm is getting so that they can make the brand icon of the company increase in the country(Mero, Tarkiainen and Tobon, 2020).There are a lot of special offers as well which are going to be given by organization to the customersso that there is a better execution which results in company to have better sales. Place There are 14 stores which were shut down by M&S in 2017 and the organization could not make enough profit because of that factor. China is a great market for the company to invest in so that they can get their competition back up. The company will have to follow the traditions and culture of the place so that they do not make the same mistake again(Sood, 2017). The population in the country is also high and the demand for such products will be present and this can make the company get high revenue which can be invested by the organization to invest more in this product and expand themselves more effectively. There are a lot of people who buy branded clothes for sports which is a great opportunity for the organization because they want them long lasting. People The population in China is shifting to getting healthier and they work out which is a great base for the new product in the country. The people can be attracted in the organization very easily because there are a lot of discounts, offers and other promotional methods which the company is using frommoment to moment so that they can get in more customer base. Employees will also be found in bulk in China and that can help the company to have higher productivity and that is good for a long run of organization. There are a lot of services which are being given by the company to customers and quality of products is also going to be well maintained so that there is a better operations. Physical Evidence There are a lot of attractive stores which the company is going to design and a well designed website as well so that they can attract more customers(Kemper and Ballantine, 2019). Photo shoot is going to make the products more attractive in the organization or the customers which can make the sales increase. The comfort of the customers is going to be focused on by the new products which are being designed for the customers so that theclientscan have animproved functioning. Theclientsare going to having online and offline stores by M&S so that they can
find it convenient for purchasing the products which is a very good factorfor firmto reach out to the right customers. Process There is a lot of rivalry in market which has to be taken care of by the firms so that they can get a improved base in China. China is the base for a lot of companies which is why company will have wider base for theirfunctioning which help firm tohave a better operation. Customers are not going to be comfortable in the beginning therefore the organization will have to make customers aware of changes and facilities which they are getting for them so that there is an improved performance and the association will be able to function efficiently. CONCLUSION It is concluded from the above report that there would be changes which have to be done in organization so that organisation is able to withstand its competitive positioning. There are factors which have to be analysed which is going to reduce the risk factors for the company and the profit margins and the strategies in the market can be effective for a long and successful run. The company will have to take the right decisions at the right time so that the organization does not fall in the market and they can even lose their customer and market share which is not good for functioning.
REFERENCES Books and Journals
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