Market Expansion Plan for Marks & Spencer: Analysis of Jamaica, Thailand, and Argentina

This presentation provides an analysis of Jamaica, Thailand, and Argentina as potential markets for Marks & Spencer's expansion plan. It includes SWOT analysis, market screening, risk analysis, competitor analysis, culture analysis, segmentation, targeting, and conclusion.

MARKETING IN A GLOBAL
CONTENT
Marks & Spencer

INTRODUCTION
 The Intent of this presentation is to increase
the understanding regarding market
expansion in new market for the growth.
 The presentation is based on Marks &
Spencer, which is in search of new
developing market where it can expand its
business operations.

OVERVIEW OF MARKS & SPENCER
 Marks & Spencer is one of the famous
multinational retailers of United Kingdom
with head office in London. The company
specialises in home products, food products,
and clothing.

SWOT ANALYSIS
Strength
Private Labels
Innovations
Weaknesses
Incapable to Penetrate
International Market
Low Customer Satisfaction
Opportunities
Expansion in Developing Market
Threats
Competitors – Zara, United Colors of
Benetton, and Gap

SELECTED MARKET JUSTIFICATION
 Jamaica, Thailand, and Argentina have been
selected for the market screening because
Marks Spencer have very less or no
operations in these countries.
 Besides this, these countries are
economically stable which offer opportunities
to different companies.

ROUGH MARKET SCREENING
Countr
y
Accessibility Profitability Market Size
Positive Negativ
e
Positive Negativ
e
Positive Negativ
e
Jamaica Yes Yes Yes
Thailan
d
Yes Yes Yes
Argenti
na
Yes No Yes
Possibl
e
Criteria
Infrastructure
Company/country
ethics compatibility
UK Relationship
Trade Agreements
Language barriers
Time
Trade barriers
Competitors
(direct/indirect)
Disposable income
Exchange rate
GDP Per capita
(wages)
Tax
British product
acceptance
Culture
How big is the
market?
Population size
Innovation
Product preferences
Growth of sector in
country
Culture adaptability

RISK ANALYSIS
Multiple Risk Analysis
PRS Group
(Higher is
Better)
Euromoney
(Lower is
Better)
CIPS
(Lower is
Better)
EIU
(Lower is
Better)
Euler
Hermes
Jamaica 78 Tier 1 Level 2 7.02 D4
Thailand 76 Tier 2 Level 2 4.63 B1
Argentina 71 Tier 34 Level 3 7.02 C4
Sources

RISK MATRIX

BUSINESS PORTFOLIO MATRIX

BUSINESS PORTFOLIO MATRIX
Criteria to Evaluate a Country’s Attractiveness
Criteria 1 Profitability of Market
Criteria 2 Growth of Market
Criteria 3 Competitors
Criteria to Evaluate Compatibility with Each Country
Jamaica Thailand Argentina
Criteria 1 Low Profitability High Profitability High Profitability
Criteria 2 Medium Growth Rate High Growth Rate High Growth Rate
Criteria 3 Low High Medium

PORTER FIVE FORCE FRAMEWORK
Five Forces Rate (High, Low, and Moderate)
Threat of Substitute Low to Moderate
Threat of New Entrant Low
Power of Supplier Low to Moderate
Power of Buyer High
Competition among existing
players
High

TYPE OF MARKET
 Marks & Spencer operates in the
Monopolistic competition, which is also
known as imperfect competition classified by
a number of companies that sell the similar
kind of goods but are not identical.

COMPETITOR ANALYSIS (HERFINDAHL-
HIRSCHMAN INDEX)

COMPETITOR ANALYSIS

SELECTED MARKET JUSTIFICATION
 The developing fashion segment in the
Jamaica, represent high profitability for Marks
& Spencer, as it has less number of players
in the market that has covered the market
share. However, the industry has low growth
rate due to decline of its clothing
manufacturing market. Besides this, it can
raises high financial as well commercial risk
for Marks & Spencer therefore, Jamaica is
being removed from the list of selected
companies for the company’s market
expansion plan.

MARKET RANKING (SCORING: 1 (EXTREMELY
UNATTRACTIVE) TO 10 (EXTREMELY
ATTRACTIVE)
Weighting (%) Thailand Argentina
Product Fit to
Market
50 9 7
Resources
Needed to
Compete
20 5 4
Ease to
establish
Market
Presence
10 2 1
Obtainable
Market Share
20 5 6
Total 100 21 18

CULTURE ANALYSIS

SELECTED MARKET JUSTIFICATION
 From the analysis, Argentina has been
removed from the list because it does not
offer high market opportunity to Marks &
Spencer in comparison to Thailand.

12 C’S FRAMEWORK
 Country
 Culture/ Consumer Behaviour
 Channels
 Currency
 Communication
 Capacity to pay
 Choices
 Caveats
 Contractual Obligation
 Consumption
 Concentration
 Commitment

SEGMENTATION
 Demographic and Psychographic
segmentation is being used by Marks &
Spencer in order to target the market. The
company is operating its business at
numerous locations in order to cover the
maximum industry share. Through which it
could be said that company targets different
religions, lifestyle, and culture.

TARGETING
 Marks & Spencer target customer who belong
to the fashionable as well as trendy group
that take shopping as the social action that
tracks trends without spending high amount.
The marketing efforts of the company are
targeted towards young generation.

CONCLUSION
 The above presentation is highlighting the
market analysis of three countries that is
Jamaica, Thailand, and Argentina. From the
analysis, it could be said that Marks &
Spencer can expand its business operations
in Thailand considering its growth rate and
low financial risk.

REFERENCES
 Bhasin, H. (2018). SWOT analysis of Marks &
Spencer. Retrieved from https://
www.marketing91.com/swot-analysis-of-marks-spencer/
 Euro Monitor. (2019). Apparel and Footwear
Specialist Retailers in Thailand. Retrieved from https://
www.euromonitor.com/apparel-and-footwear-specialist-r
etailers-in-
thailand/report
 Hofstede Insights. (2019). Country Comparison.
Retrieved from https://
www.hofstede-insights.com/country-comparison/
argentina,thailand/
 Jamaica Trade and Invest. (2009). Fashion and
Accessories. Retrieved from http://
www.jamaicatradeandinvest.org/nes/documents
/FASHION.pdf

REFERENCES
 Jamaica. (2019). Facts About Jamaica. Retrieved
from https://
www.jamaica-no-problem.com/about-jamaica.html
 Marks & Spencer. (2019). About Us. Retrieved
from https
://corporate.marksandspencer.com/aboutus
 Perrie, Y., & Rades, T. (2012). FASTtrack
Pharmaceutics: Drug Delivery and Targeting 1st
ed. U.S: Pharmaceutical Press.
 Pettinger, T. (2017). Monopolistic Competition –
definition, diagram and examples. Retrieved
from https://
www.economicshelp.org/blog/311/markets/
monopolistic-competition/

REFERENCES
 Pratap, A. (2017). Fashion Industry Five Forces.
Retrieved from https://
www.cheshnotes.com/2017/07/fashion-industry-five
-forces
/
 Royal Danish Ambassy. (2019). Thailand Fast
Fashion Industry. Retrieved from https://
www.fibre2fashion.com/industry-article/3224/sector-
overview-the-fashion-industry-in-
thailand
 Sampson, T. (2017). Brexit: The Economics of
International Disintegration. Journal of Economic
Perspectives, 31(4), 163-184.
 Statista. (2019). Fashion. Retrieved from https://
www.statista.com/outlook/244/114/fashion/
argentina

REFERENCES
 Statsita. (2018). Revenue of Marks & Spencer worldwide in the
financial year ending March 31, 2018, by segment (in
million GBP). Retrieved from https://
www.statista.com/statistics/413352/group-revenue-marks-and-sp
encer-
mands-by-segment/
 The Borgen Project. (2019). Infrastructure in Jamaica.
Retrieved from https://borgenproject.org/infrastructure-in-jamaica
/
 Tourism Thailand. (2019). About Thailand. Retrieved from https
://www.tourismthailand.org/About-Thailand
 Trade Economics. (2019). Thailand Households Disposable
Income. Retrieved from https://
tradingeconomics.com/thailand/disposable-personal-income
 World Integration Trade Solution. (2017). HH Market
concentration index By Country 1988-2017. Retrieved from
https://wits.worldbank.org/CountryProfile/en/country/by-country/
startyear/LTST/endyear/LTST/indicator/HH-MKT-CNCNTRTN-NDX