Marketing Strategies: A Case Study of Marks & Spencer

This report delves into the fundamental aspects of marketing, analyzing Marks & Spencer's current marketing performance and strategies. It explores new marketing strategies, market segmentation, and the importance of marketing planning and understanding customer buying behavior. The report aims to provide insights into various marketing strategies and equip readers with the necessary skills to develop effective marketing plans for any company. Marks & Spencer, a prominent UK retail brand, is chosen as the case study, highlighting its journey from a clothing retailer to a global leader in fashion and food products. The report examines the company's strengths, weaknesses, opportunities, and threats, proposing a 7Ps marketing mix strategy for its future growth, particularly in the Australian and Asian markets.

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INTRODUCTION TO MARKETING
Marks & Spencer

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Introduction
This report deals with different basic aspects of Marketing. For effective analysis, Marks &
Spencer’s current marketing performances and strategies are discussed. In addition, new
marketing strategies and market segmentation are projected for Marks & Spencer. The main
purpose of this report is to understand importance of marketing planning and identifying
customer’s buying behaviour. This report would help readers to gather knowledge about
different marketing strategies and gain required proficiencies to develop useful marketing
plan for any other company. It is fact that marketing planning is an essential function of
marketers. It is considered as the most crucial clamour for any profit making companies. It
provides an elaborative notion about company’s target market, strategies to increase sales, and
gains on profit. The selected company for this marketing project is - Marks & Spencer, which
is one of the biggest brands in UK’s retail industry. It sales fashion and food-products in UK
as well as some other parts of the world. The company has near about 1400 retail stores all
over the globe. It holds varieties of stylish and quality products at its stores. Marks & Spencer
has started its journey in the year 1884, since then it has become one of the popular brands in
clothing and food business.
However, in early 90s and most recently in 2008-09, the company has witnessed a sharp
decline in sales. It is reported that emergence of new brands and global economic depression
have been the two major causes for such decline. Besides, trends of online shopping, fast
fashion, etc have enduring impacts on company’s sales figures. In this context, evaluation of
current marketing performance and strategies of the company is rather meaningful. Plus,
creating innovative marketing strategies and search for new markets are going to be necessary
for its revenue and growth (Marks & Spencer 2017).
Assessment of the present marketing performance and strategies
It is reported that Marks and Spencer (M&S) was established by Michael Mark in late 1880s.
The company has started its business as renowned clothing retailer. Later on, it had included
selling foodstuffs as another segment of business. In present times, Marks and Spencer
(M&S) is one of biggest retail brands in UK. However, the company has expanded its
business in different parts of the world. As a matter of fact, it has been operating sales activity

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in countries like Hong Kong, India, Malaysia, Singapore, and Middle East nations (Pratley
2014).
According to a report, Michael Mark was the sole founder of Marks and Spencer (M&S), and
by his own excellence the company become quite successful in UK. In 1894, he decided to
merge the business with Tom Spencer’s. Since then, the company had started growing
significantly and become a global leader in retailing. However, in late 1900s both of them had
died and Simon and Sieff – two children of Michael, has become the in-charge of the
company. They always prefer to give more importance in value creation and providing
superior quality products and services to customers. Plus, they have given importance to
create healthy business relationship with suppliers, distributors, and other essential factors of
retail chains. Customisation of business has been their basic marketing strategy. They
believed that building trustworthy relations with customers, suppliers, dealers are the foremost
things to do. Truly, this strategy has provided great support in its long term successes
(Spencer 2017).
With this successful run, in the year 1926, Marks and Spencer (M&S) has listed as public
company in UK. It is fact that Marks and Spencer (M&S)’s strategies regarding quality, value
and relationship are also quite effective in present business situations. In clothing business,
the company always has given focus on delivering quality products with stylish outfits. It tries
to hold products in stores which are modern in looks but simple in use. M&S has been
providing these products in all of its stores across the world. They believe that quality and
availability of products are two most important factors in retailing business. People
irrespective of their nationality; do want quality cloths and food products (Wagner & UPEI
2014).
A study shows that Marks and Spencer (M&S) has implemented a new marketing strategy
called as – only M&S, in its stores. It is basically a unique method of attracting customers for
products and services. It highlights some briefing and history associated with each product.
Besides, company’s management has given much emphasis on digitalisations of its products
and services. As a matter of fact, Marks and Spencer (M&S) has realized that online shopping
is going to lead the market. If the company is not able to compete with online shopping
companies, it may not survive for long. For this, M&S’s marketers are planning new ways of
exploring markets through digital technologies (Harrison 2017).

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It is fact that Marks and Spencer (M&S) has launched a brand new website for online trading.
Plus, it has implementing strategies to connect people through different platforms of social
media such as Facebook, Twitter, etc. According to a report, the main medium for company’s
branding and promotion has been the television and magazine advertisements. Moreover,
Marks and Spencer (M&S) has invested huge amount of money for hoardings and in-store
promotional activities. The fact, however, is that tradition of communication are changed
significantly. Peoples are now having fewer times to watch at printed advertisement; rather
they prefer to view it at their Smartphone in some digital formats (Dentons 2017).
A report shows that Marks and Spencer (M&S) has analysed customer loyalty data to craft
new marketing strategies. It shows that the company is still carrying on its tradition of value
creation and maintaining good customer relationship. Moreover, M&S somehow holds a
strong financial position in the market. Reports show that despite economic depression and
decrease in sales, Marks and Spencer (M&S) is still able to gain profits in the preceding fiscal
years (Wachman et al. 2013)
It has identified that Marks and Spencer (M&S) possesses effective human resource
management system. This is one of the principal reasons for its success. As a matter of fact,
this system has been providing and retaining skilful employees for the organization. Plus, the
company always focuses on improving employee’s skills through conducting numerous
training and development programmes. It is true that M&S stores are located at different
places of the world. So, recruitment of local staffs for stores is quite relevant. In fact, it has
over 1400 stores all over the globe and thousands of local staffs are working in those stores
(Silk 2015).
It is reported that Marks and Spencer (M&S) has its markets in UK, Asia, Middle East, and
other parts of Europe. It mainly focuses on the people, who likes cloths and prefers to eat food
outside, irrespective of their age and gender. Meanwhile, the company’s management always
keep the products’ price at higher level. They are basically targeting well-earning
businessmen and employees to sell its products. According to a study, market segmentation
can be done on the basis of different factors such as age, gender, ways of life, livelihoods,
buying natures and other behavioural aspects. As mentioned above, M&S has been selling
products for its loyal and old customers who love fashion and foods. However, recently
company’s marketing team has implemented strategies to attract teenage boys and girls for its

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products. For instance, M&S has been conducting massive social media promotion for last
couple of years (M&S 2014).
M&S has the majority of its rivals in the UK. Besides, it is more of a global competition
rather a country based rivalry. For the reason that most of its competitors are operating their
business on the countries where M&S already exists. Burberry Group PLC, Arcadia Group
Limited are its biggest rivals. Moreover, those companies are operating in such countries
where M&S never been entered or failed to succeed such as China, South Korea etc. It shows
towering powers of its competitors in global market. However, as per the UK’s markets are
concerned, Marks and Spencer (M&S) is identified as one of the leading food and fashion
brands of the country (Pradhan 2014).
Proposed market segmentation and strategies
It is a widely accepted fact that selecting target market and creating specific marketing
strategies for that target market is one of the basic functions of marketing department. In this
regard, searching of new market segments and preparing strategies for such segments is the
basic objective of this report. It is evident that Marks and Spencer has been doing business
within UK and some parts of the world, quite successfully. But its global expansion plans is
not such exhaustive as it would be required. It is reported that the organization operating sales
function only in few countries worldwide. It is true that Marks and Spencer do possess stores
in countries like Malaysia, Singapore, South Korea, India, Hong Kong, Thailand, and some
Middle East nations. However, this expansion is not going to be enough in present
competitive market (Bhatia 2015).
Nevertheless, it is true that Marks and Spencer had initiated new market penetration plans for
countries like China, but it turned out as an unsuccessful marketing venture. Besides, it is
preparing to entre into Australian market within this year. In this economic crisis situation of
UK, the company has to go forward with the intention to grab a firm hold in the international
market. It is suggested that Marks and Spencer should focus on Australian market first and
then try to establish few more business ventures in Asia (Marks and Spencer 2017).
According to a study, international business ventures are never going to be easy tasks. It
involves massive risks factors associated with them. Plus, there is a great possibility of not
acceptance of old marketing strategies in those new markets. Besides, social and cultural

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difference is another basic problem. Marks and Spencer is considered as one big exporter of
food and fashion products to other countries. But successfully sustain in those market shall be
a challenging job. It is fact that Marks and Spencer is UK based retailing company. The
products it sales are highly customized for UK’s market. So, there is a high chance of non
acceptance of those products in other markets like Asia, Australia, Middle East, etc. However,
it has been able to establish its business in those countries. But the big question is that – how
long it can sustain there and grow its overall business (M&S 2016).
Given this situation, formulating effective marketing strategies shall be the essential
requirement. Before going into details of marketing strategies, it is important to conduct
SWOT analysis of Marks and Spencer. SWOT (Strength, Weakness, Opportunities, and
Threats) is an important managerial technique of business analysis. It provides valuable aids
in managerial decision making. SWOT analysis of Marks and Spencer, is as follows:
Strength
 One of the biggest clothing and
foodstuffs Retailing Company in UK.
 over 1400 stores worldwide
 Over 25 % share of the UK’s food and
fashion retail industry and with high
profit ratios.
Weakness
 Not sufficient performance records in
the last couple of years
 Recent failure in marketing ventures -
China
 Prices are bit high in compare with
others
 Unsuccessful products
 No enough experiences in
international operations.
Opportunities
 Already existing international markets
 More than 400 international stores
 High financial coverage
Threats
 Economic and financial predicament
 Brexit and its consequences
 Less employment rate
 Highly competitive domestic and
international market.
Table 1 [Source: Henry 2015]

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In this context, the marketing mix (7Ps) would be the best marketing strategy for the
company. Plus, additional activities associated with each part of the strategy shall be very
crucial. Detail description of the strategy is discussed below-
7Ps Significances and Requirements
Product  The Product have to be in best form in
respect of appearance and usages,
 Customization of the product is
essential
 It should be valuable
 It should fulfil most of the customers
expectation
 M&S should take care of the above
factors effectively.
Place  The product should be simply
reachable
 Importance must be given on the
target segment
 All the stores of M&S should be well
equipped with products and services.
 Other platforms of trading should be
available, viz., Smartphone apps,
online trading.
Price  The Product should to continuously
be viewed as meaningful article of
trade for money.
 It does not fundamentally indicate that
product must be the obtainable at
lower price;
 It is fact that buyers are usually
pleased to provide a little extra for
something that is really useful.
 Marks and Spencer (M&S) should

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keep price at relative lower rate, it
will help in quick market penetration.
Promotion  It is the primary element of
marketing.
 It has reliable connection with selling.
 Any publicity will boost selling;
nevertheless special ways of selling
ought to be always being an
alternative.
 For Marks and Spencer (M&S), social
media will play a vital role in
advertising.
 Promotion ought to be done in such
modes which are more appealing to
target market.
People  It indicates employees and
management officials of business.
 Marks and Spencer (M&S)’s
Marketing department needs skilful
marketing officers, in addition to
other diligent staffs.
 Jobs of Marketing Manager are
decisive.
 However, Marks and Spencer
(M&S)’s directorial proficiency is
going to be critical.
 A right person at right place is the key
decisive factor.
Processes  It indicates the manner of providing
the service and product.
 It has major influences on customer
satisfaction.
 Marks and Spencer (M&S) should

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improve business process.
Physical Evidence  In case of services, the companies are
required to provide some physical
material to the customers related to
the services.
 Services are intangible in nature, but
that should be evident in materialistic
form.
 Marks and Spencer (M&S) should
provide bills and other forms of
physical evidence to make business
more compliant in nature.
Table 2 [Source: Deloitte 2014]
Validation of the proposed marketing strategies
According to a report, marketing management is becoming one of the difficult and
challenging tasks for the corporate. Increasing competitive nature of markets creates more
problems for the marketers. As a matter of fact, no marketing strategies shall be fully secured.
It is fact that proposed marketing strategies’ success much depends on other associated issues
such as – economic conditions, legal policies, social movements and acceptance, political
scenarios of the country, technological innovations and its implementations, etc. In addition,
marketing as a business section can not work independently. It requires essential supports
from other business departments like human resources, finance, information technology, legal
operations, sales & distribution, etc. However, direct aids from human resources and
information technology shall be the most crucial (Chang & Huang 2017).
As discussed earlier, new market penetration is not an easy task. It needs adequate research
and analysis prior to taking such entry. The target markets for M&S’s new marketing
planning shall be the Australian market and some more areas of the existing Asian market.
Australia is going to be completely a new market for its business. As highlighted before,
building strong customer relationship and achieving trust of the market will be M&S’s
primary objective. The trendy and fashion concern youth and old people are going to be the
main focus (BMS 2013).

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As highlighted above, superior quality services from HR and IT shall be essential to
implement the proposed marketing strategies. As, it would be new market penetration faction,
HR functions like recruitment of local staffs, arranging training and development programmes
for new employees, scrutinizing pay policies to retain valuable employees, etc should be
conveyed with utmost efficiencies. Moreover, Australia and majority of Asian countries are
more or less technologically well-organized. Given this scenario, online trading techniques
has to be in place. These days, people are showing greater interest in doing shipping online.
M&S need to take technological support to develop customer friendly online trading
platforms. Besides, providing high quality customer services should be prioritized. After all,
achieving customer satisfaction is one of the basic objectives of marketing (Pride et al. 2016).
Conclusion
As discussed earlier, marketing strategies are always remain sinuous in nature. They vastly
depend upon changing scenarios of businesses. It is also fact that customer’s buying
behaviour changes with times. So, any marketing plan which is useful now, may become
ineffective in future. A study shows that Marks & Spencer has faced massive downfall of
sales in last couple of years. As a result, in 2016 the company lost few market shares. In the
global market, its business ventures have not been quite successful as it was intended. For
instances, market expansion plan in China has turned out to be a failure. Add to this, recent
economic events like Brexit, have a significant impact on UK’s retail industry. Future of all
retail stores operating across EU - is still a dubious matter. Besides, recent trends of fast
fashion and online trading create more challenges for the company. Despite of strong market
hold and brand name, Marks & Spencer is going through a crisis time. Given this situation,
proposed market segmentation and marketing strategies are going to be very critical. Now, it
is up to the marketers - how they will approach and implement those strategies. In this
perspective their managerial skills and expertise will play a significant role (Beamish &
Ashford 2016).

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