Marketing Strategies for Launching New Product Line

Marks & Spencer (M&SP) is set to launch a new product line of women's designer gowns in the UK market. The company will employ various marketing strategies, including social media and internet, mail marketing, and publicity, to promote its products. M&SP will also utilize the four Ps of marketing: Product, Price, Place, and Promotion. Additionally, the company will target specific segments of the market, such as geographical and demographic segmentation, to effectively reach its desired audience.

Marketing Principles

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Marketing process............................................................................................................4
1.2 Cost and Benefits of marketing orientation......................................................................5
TASK 2............................................................................................................................................6
2.1 Macro and Micro factors..................................................................................................6
2.2 & 2.3 Segmentation and targeting....................................................................................8
2.4 and 2.5 Buyers behaviour.................................................................................................9
TASK 3..........................................................................................................................................11
3.1 New positioning of product............................................................................................11
3.2 Distribution Strategy......................................................................................................12
3.3 Pricing strategies............................................................................................................13
3.4 Promotional Measures....................................................................................................13
3.5 Extend marketing mix....................................................................................................14
TASK 4..........................................................................................................................................15
4.1 Marketing mixes- 2 different segments..........................................................................15
4.2 B2B vs B2C....................................................................................................................16
4.3 Distinction between International marketing and Domestic marketing.........................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INDEX OF TABLES
Table 1: Macro environment factors of M&S.................................................................................6
Table 2: Micro environment factors of M&S..................................................................................8
Table 3: Marketing mix.................................................................................................................14
Table 4: Marketing mixes of two different segments....................................................................15
Table 5: Difference between B2B and B2C..................................................................................16
Table 6: Difference between international and domestic marketing.............................................16

INTRODUCTION
With the increase in turbulence in market and competition level, organisations are
inclining towards the improvement in their efficiency level and better showcasing of their
products and services. In that respect, marketing has become the core area of operation in
organisation to foster growth and development. Present report elucidates different components of
marketing and its impact on an organisation. For the purpose, retail company Marks and Spencer
is taken into account.
TASK 1
1.1 Marketing process
Marketing refers to the process of establishing strong communication and interaction
between business organisation and consumers. While, marketing process refers to analysis of
market opportunities and framing strategies to fulfil objectives of the company. There are various
stages of marketing process that are determined as follows: Mission and vision: The first step is to articulate mission and vision of the company to
function effectively in potential market. M&S possess an objective of acquiring higher
production, profitability and customer loyalty in the market. Environmental analysis: Secondly, to conduct situation analysis of organisation through
SWOT model that will evaluate strength, weaknesses, opportunities and threat of
business entity. The concerned business organisation should work upon its weaknesses
and maintain their positive strength and opportunity. Developing strategies and tactics: The third step of marketing process is to set objectives
that are clear, measurable s and certain time scale. Managers of M&S will adopt SMART
objective principle to accomplish objectives in systematic manner.
 Implementation of plan: After framing goals and objectives last step is strategy
development that involves selecting target market and form tactics to attain desired
results. The cited enterprise will control and monitor its business operations through
clients’ feedback and current market scenario.
Marks and Spencer also follow marketing process to attain its objective. There are large
number of customers to the organisation adopts structured and systematic method in marketing
by adopting a set of activities, which are described as follows:

Market Auditing: The mentioned company makes an overall scrutiny of the market and
identifies the organisation's competency level (Lefebvre, 2011). In this, it makes internal analysis
and identifies its strengths and lagging behind areas of operation. Further, through realising sales
trend, competition position and resources available to it, Marks and Spencer is able to adopt
effective strategies.
Customer's needs and wants: Marks and Spencer seek customer's opinions and views to
satiate their needs and wants by providing them wide range of products and services.
Process: It refers to the process of converting strategies into action through offering
products and services and showcasing them in effective manner through different ways such as
direct selling, digital marketing to reach large number of customers.
1.2 Cost and Benefits of marketing orientation
Marketing orientation refers to the process of producing products and services in
accordance to the requirement of the customers (Armstrong and et.al, 2014). It has both benefits
and costs that incurs to the organisation.
Basically, market orientation is of four types namely production orientation, product
orientation, selling orientation and promotion orientation. Among the mentioned, the suitable
marketing orientation strategy is promotion orientation. It refers to the process of showcasing
products on the basis of differentiation of customers. In Marks and Spencerit is based on
preferences, value of product and geographical location (Mark and spencer, 2016).
Benefits
 Making products as per the needs and wants of customers increases the customer
satisfaction.
 Due to this the sales and customer base gets widened that provides good profits and sales
to an organisation.
 It provides better opportunities of market expansion in international market. It creates good brand image in market along increasing its share.
Costs
 It is very expensive in nature, as it demands inclusive research and development.
 It is less reliable and precise due to small sample size. It threatens the growth and
development of Mark and Spencer.

 Market orientation also demands for higher promotional and advertising cost. M&S has
to incur good amount of capital on marketing activities.
 As the products are manufactured and availed according to collective interest of specific
customer group it often creates situation of excessive demand of product in the market
which is difficult to control.
TASK 2
2.1 Macro and Micro factors
Macro environment:
Macro environment refers to those external forces that indirectly impact upon working of
concerned company. It helps a business unit in identifying the threats and opportunities in the
future. This aspect of the business is not in the control of the company hence companies keep a
close check on external factors for undertaking effective business decisions.
Environmental factor is one of the most significant factors for the business development.
It is the surrounding in which business operate to attain favourable results for the company.
Environmental issues for M&S are significant as it helps the business in identifying the critical
factors for business production and by addressing; the same can develop effective promotional
measures in the market as well. The company took an active role to address the issues and create
a positive brand image in the market. Environmental policies such as 'Look behind the label',
Plan A etc. are the active measures undertaken by the business unit. The environmental scanning
helps the business unit in analysing the crucial measures that can be undertaken for contributing
in social growth of the business thus enhancing high promotional prospects.
Table 1: Macro environment factors of M&S
Political and
legal factors
Economic factor Social factors Environmental
factors
Technological
factors
Political stability
and instability
plays crucial role
in progressing or
hindering
company's
The economic
factors include
interest rate,
inflation and
economic
stability in favour
Here, availability
of M&S products
in market depends
upon cultural
trends; belief and
behaviour exist in
Global warming
and pollution are
two factors that
need to be
resolved to a
extent by
Adoption of
updated
technology and
innovation
improves
performance of

operations
respectively
(Armstrong and
et.al, 2014).
of cited
organisation.
society (Kotler
and Armstrong,
2010).
concerned
company on its
level.
M&S in UK in
concerned market.
The above table provides a basic overview of different environmental factors significant
for the business growth and development. This helps the company in analysing possible threats
and opportunities in the future. For example political focuses on analysing the political stability,
government policies, regulatory frameworks etc. the impact of the same on retail business
operations is high. To enhance business opportunities in international market, M&S will have to
consider the policies regarding market entry, taxation, interest rates etc. Countries such as Iran,
Syria, Qatar with high political instability poses threats for business operations. Contrary to these
countries like China, India and Japan with political stability and effective rate of taxation are
favourable for business growth and expansion.
Economic policies are another crucial part of the business planning opportunity. This
factor includes measures such as inflation, rate of employment, population rate, growth rate etc.
Analysis of these factors helps the business in evaluation growth and development opportunities
in the market. M&S is planning to launch a new product rage of wedding gowns in the UK
market. The current economic aspects of the country are favourable for the product idea. The
high rate of disposable income and overcoming economy from financial crisis provides a well
developed measure for product growth and success. Hence, macro environmental scanning helps
the business unit in creating a significant impact on business development.
Micro environment
While, micro environment refers to internal sources that directly influence productivity of
cited leading retail company, which are described as follows:
Table 2: Micro environment factors of M&S
Man Material Machines Methods Metrics
It consists of
human resources
working in the
The raw materials
obtained from
different suppliers
It includes
machinery and
equipment used
The plans and
procedures used
to execute
Marketing team
evaluate and
measure

organisation. to avail its
services.
for production. policies. performance of
completed tasks.
2.2 & 2.3 Segmentation and targeting
Market segmentation
M&S adopts market segmentation concept in order to classify its large expanded market
into small segment (Kubacki and et.al, 2015). The classification take place on basis of
customer’s needs expectation and requirement. M&S has segmented its market on following
basis: Geographic segmentation: When classification is based on different geographical
boundaries mentioned type take place. M&S has planned to focus UK market as it
expects higher profit from cited market area. Demographic segmentation: Here division take place on basis of age, gender, education,
income level and occupation of society. Cited company targets women of elite class
group between age group of 20-40 years to showcase its designer gowns. Behavioural segmentation: Here, M&S evaluates customer loyalty in order to classify
them into smaller groups, each segment comprising individuals loyal towards its M&S
brand. Psycho graphic segmentation: According to this type of segmentation, lifestyle of
potential customers is evaluated and determined by M&S group to manufacture goods
accordingly.
Targeting strategy
It is essential to set target market for the organisation to introduce new product in the
company. The organisation will determine particular strategy to undertake operations
accordingly. M&S will adopt focused or concentrated targeting strategy where it will highlight
just one segment with a single marketing mix (Bhattacharya, 2010). The marketing team will
make analysis of market trends and customer needs in order to design specialized marketing mix.
Customers will be given special privilege by making available various options for them to
consume. This attracts good amount of consumers that the company is interested to target. M&S
will make use of concentrated targeting strategy as effective tool to promote its new launch.

M&S is launching new collection of gown for women segment between age group of 20-
40 in UK market. The company focused major on demographic segmentation of the company so
along with geographic segmentation.
2.4 & 2.5 Buyers behaviour
Product positioning is a crucial measure which helps the company in attaining effective
business results. It is a measure whereby companies develop an effective brand image in the
minds of the consumers. M&S will focus on developing brand position on the basis of product
differentiation and quality perception ion the market this will help the company in creating a
unique market position for new product range. Marketing decisions largely depend upon attitude
and behaviour of potential customers. Buyers are considered as end users of products and equal
importance is giving to them in different marketing activities. Buyer’s behaviour refers to
attitude and perception of consumers towards purchase of a commodity or services. Buyer’s
behaviour generally is of four types that explained below: Economic factor: Firstly, the economic factor plays a crucial role in de terming urge
purchasing commodity from the market. When salaries or earnings of consumer increase,
it empowers to consume good quantity of products from the market. Social factor: Secondly, social factors help to identify behaviour of individual towards
market. The marketing of stated company deeply analyzes cultural trends and tradition of
society it is operating in. as chances are there that if commodities availed by company are
not according to their social and cultural values, sales will diminish (Armstrong and et.al,
2014). Personal factor: Another factor is personal factor which comprises individuals own
personality traits, behaviour, belief, lifestyle and occupation. These play crucial role in
determining purchasing attitude of potential customers.
 Psychological factor: Lastly, psychological factor that is addressed by social influence,
perception and motivation of individuals during purchasing time. M&S marketing team
taken in consideration all these factors while making any further change in its marketing
policies.
The impact of buying behaviour on the consumer preference is high and effective. This
helps the companies in analysing different promotional measures that the business should
undertake to attain high organisational objectives. Following are varied set of buying behaviour:

 Complex buying behaviour: These types of consumers are those who are effective
involved in the buying process of the company and has wide awareness about brand
variability and products as well. In order to focus of these consumers companies need to
focus on the brand features and identification in the market. The product need to clearly
displayed and communicated. Print media advertisement and personal selling are
effective promotional measures for these consumers. For the present product range in the
market, this strategy will be effective. Variety seeking behaviour: These are the consumers who seek significant brand
switching but demand low involvement. It is because brand switching is not due to
dissatisfaction but boredom instead. Hence, these consumers develop a well developed
impact on the strategies of the business. Effective shelf display, sponsoring, inventory
checks etc. are the common strategies for business development for these consumers. Dissonance reducing buying behaviour: These are the buyers who do not evaluate much
difference in different brands available in the market. They are the buyers who will seek
the product of their choice on comparative pricing basis. Hence, effective and favourable
sales promotion is significant for these business units.
 Habitual buying behaviour: These are the consumers who does not develop strong
attitude for the brand rather prefer brand due to habit. They select brand due to familiarity
rather than loyalty hence effective communication through advertisement and sales
promotion is the most effective means of developing sales for these consumers.
Illustration 1: Buying behaviour of consumers

TASK 3
3.1 New positioning of product
Positioning of the product is one among the crucial aspects of marketing plan as it is
process where marketers determine regarding the communication of attributes of products. M&S
make use of product class approach to introduce new range of gowns for women segment in UK
market. The marketing team has proposed product positioning strategy for M&S, it is going to
launch a new line of cosmetics in UK market. These will provide a herbal base for consumers.
The target market for the product will be young female buyers. The new product development
measures will involve the following measures: Idea generation: The main objective of positioning is to differentiate a brand or product
from its competitor companies present in the market. M&S is planning to expand its
operation on UK market and therefore introducing new range of cosmetics (Lefebvre,
2011). M&S will avail information for environmental audit to analyze the product fit in
the present market conditions. Idea screening: It is a very well known fact that London is hub for fashion street
designers and fashion freak audience. Company will focus on analysing the market
demand and product demand prospect in the economy. Herbal cosmetic which are
chemical free are in high demand in the economy. Associating the product with reputed
brand will be favourable for the company. Concept development: Company will then undertake the actual production and product
development to attain effective results for the business ideas. Marketing strategy: The marketing strategy for the product plays a crucial role for the
company. M&S will focus on developing effective and well developed brand image by
introducing effective marketing measures. Product will be quality ascertained, premium
pricing will develop quality perception, M&S stores and online sales will be developed
and aggressive promotional measures will be implemented for new product range. Business analysis: Company will then analyze the production plan in order to analyze the
business position in the current market situation. This stage will plan the financial
analysis of the business as well.

 Product development: M&S will then undertake the production function for he business
unit in order to effectively attain the business objective for the highly competitive market
in the economy. Test marketing: This stage of product development will focus on launching the product
in specific market to analyze the demand and acceptance in the economy. This will help
the business in planning and analysing the business prospects for the company.
 Commercialization: This will be the final and most effective part of product
development. Company will develop effective plan to launch the product and attain high
promotional aspects in the economy. The product will be launched in London to attain
maximum audience.
3.2 Distribution Strategy
Distribution process helps to develop a channel through which finished products of a
business entity are reached to potential market. It can include either direct selling or involvement
of various intermediaries.
Intensive distribution channel
M&S is a leading retail company that acquire huge area of UK market. Now, in order to
undertake distribution process for new product line of designer gowns (Elbeck and et.al, 2009).
The marketing team will focus on two major sources that are through its own retail outlets and
online shopping. M&S ha numerous retail stores in city and countryside of UK. Here, female
clients can easily access the shops whenever required. While on the other hand, it has also
included the option of online platform which is mostly used by young generation. Through
intensive distribution, it will avail the new product on its retail outlets so that in case of any issue
customers can directly contact concerned business enterprise rather than falling in
intermediaries’ vicious circle. The product is also availed through online platform where women
can order new launch apparel through its official website.
3.3 Pricing strategies
One of the important factors of marketing mix is pricing which essential to determine
profitability of the company. One of the basic objectives of business entities is to generate
greater revenue for organisation.

Factors/cost – It is determined that organisation should develop the pricing strategies by
considering various aspects. Thus, the company needs to define the price of its products by
assessing the cost of producing, marketing and distributing the products and accordingly
determine the price strategy.
Competition – In order attain strong competitive advantage, the business should evaluate
the level of competition, they are going to face. For this, the company should address the factors/
areas that are beneficial in comparison from the other similar product.
Customer profile – It is necessary to determine the customer's group which are to be
attracted by the organisation. The price of the product should be settled as per the potentiality of
the client.
Price skimming strategy
M&S is producing designer gowns for elite class women segment of UK so it will adopt
price skimming policy. According to which, it will set relatively high price of product or services
at first time but later on lower it with pace of time. It is considered as temporary version of
pricing discrimination. The high price of product entails that manufacturer has used good quality
of fabric to produce. The elite class women segment prefers to have ethnic and standard quality
products. They are concerned more about quality standards rather than price of commodity
(Tanner and Raymond, 2011). It also provides competitive advantage to M&S in comparison
with rivalry business entity. So through this pricing policy M&S will be able to acquire higher
revenue within beginning stage of the new launch. It will seek attraction of women clients in
much effective way.
3.4 Promotional Measures
Marketing primarily perform function related to attracting and making customers ware
about company's product. M&S will adopt following promotional tools to promote its new
launch in the market: Advertising: It is one the most popular tool to promote products in the organisation. M&S
will publish advertisements of its product in newspaper, radio and hoardings to make
people aware about its new product line.

 Social media and internet: Another interesting and interactive way to promote
commodities. It is a two way communication where the concerned company and
customers can exchange their views and ideas for the product (Kington and et.al., 2012). Mail marketing: Apart, M&S will make use of mail management technique where it will
introduce designer gowns in front of existing customers. The marketing team will render
consequent mails to potential clients.
 Publicity: One of the major criteria to popularise the product in positive manner. It will
help to seek attention of even those who are not interested for the segment but can prefer
others to purchase the product (Munoz and Huser, 2008).
3.5 Extend marketing mix
Marketing mix consists of four essential features for successful execution of marketing
policies.
Table 3: Marketing mix
Product It includes tangible and intangible commodities that satisfy customers
need.
Price The amount charged against sell and purchase of goods decides
company's profitability.
Place The market area should provide large amount of expansion opportunity
to business entity.
Promotion Ability to attract and make targeted customers aware about concerned
product (Corrigan, 2011).
People It includes managers and employees engaged in manufacturing
commodities and availing services to the customers on company's
behalf in the market.
Process According to this element of marketing mix, it reflects various steps
involved in purchasing products from the market.
Physical evidence Here, the surroundings, service scape and stove inventories are included
in physical evidence of marketing mix.

TASK 4
4.1 Marketing mixes- 2 different segments
Table 4: Marketing mixes of two different segments
Marketing mix Geographical segmentation Demographic segmentation
Product M&S produces designer gowns
according to climatic environment of
UK. The gowns are produced through
good use of fur and heavy fabric
required in cold regions of UK.
It concentrates its marketing
strategies towards elite class women
of 20-40 age groups. They will
make heavy gowns for young ladies
while lightweight gowns for aged
ladies according to their physical
appearance.
Place It will avail products in its own retail
outlets according to regular demand of
clients and customers.
Here, company will also make use
of online platform to facilitate its
services. Here, with the increasing
demand it will also avail products at
its official website for customer’s
convenience.
Price Price skimming policy will be executed
to attain greater monetary benefits.
Psychological pricing s used for
demographic segmentation as
women are very cost conscious.
Promotion Here it will make use of internet and
social media technique for promotion.
Advertising and publicity are
essential tools of promotion.

4.2 B2B vs B2C
Table 5: Difference between B2B and B2C
4 Ps B 2 B B 2 C
Product
In business to business concept, there
is consignment flexibility so the
company is less bounded.
But, in consumer buying process
organisation needs to make
extensive research to ensure quality
products to customers.
Place Place is confined. More options are available.
Price Less control over price. More control over price.
Promotion
On the contrary, B2B concept only
focuses on sales promotion activities
to generate higher profits.
A business entity needs to adopt
various promotional tools time to
time for consumer buying process.
4.3 Distinction between International marketing and Domestic marketing
Table 6: Difference between international and domestic marketing
Basis of difference Domestic marketing International marketing
Meaning Planning of marketing strategies within
internal boundaries of a country.
It is framing and executing
marketing activities for
international trade.
Risk factor The risk factor is limited and confined to
few areas.
There is presence of high
amount of risk factor.
Technology and
development
The scope of technical development is
comparatively slow and limited
(Segmentation, 2015).
While, there is huge scope of
technical support in
international market.
Price, Product,
Place and
Promotion
There is larger scope for price
determination and product differentiation.
Wide options are available for
promotional measures and places.
There is smaller scope for
price determination and
product differentiation. Narrow
options are available for

promotional measures and
places.
CONCLUSION
Marketing principle is very crucial concept for growth and development of an
organisation. M&S that is a leading retail firm plans to launch new product line of women
designer gown in UK market. The marketing team make use of segmentation, targeting and
positioning to effectively execute the product launch. It determines four major elements of
marketing mix used by M&S to accomplish defined marketing principle.

REFERENCES
Books and Journals