Strategic Marketing for Marks & Spencer: PESTLE Analysis and Porter's Five Forces Model

STRATEGIC
MARKETING

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION ..........................................................................................................................1
Critical analysis and evaluation of PESTLE factors affecting main objective of improving
organisation competitiveness by delivering customer service .............................................2
Porter's five forces model ......................................................................................................4
Appraisal of internal competencies of chosen organisation .................................................5
Evaluate marketing objectives including mission, vision for improving the competencies
through superior customer service .........................................................................................7
Strategic marketing plan for improving organisation competencies through superior customer
service over next three years..................................................................................................8
CONCLUSION ............................................................................................................................16
REFERENCES .............................................................................................................................17
Marketing Mix – Communication, 2020 [online]. Available through <
https://marketingmix.co.uk/communication/>...............................................................................18

EXECUTIVE SUMMARY
The study is based on the strategic marketing that is an effective framework for
developing, planning and implementing the strategies in a best way so that company can gain
high advantage in competitive market by delivering superior customer service. This is related to
Marks & Spencer that is the largest company in the UK and deals in varieties of range of
products like foods, clothing etc. for gaining their market share and presence in the market
company want to apply some external and internal model that helps in achieving their objectives.
In this manager of firm adopts the PESTLE , Porter's five forces and VRIO analysis so that best
strategies can be made out for getting higher profits.
INTRODUCTION
As per the viewpoint of (Shane Davies, 2020)Strategic marketing is a strategic tool
that contains the planning, organising, developing and implementing the best strategy so that
company can gain the competitive advantage according to their set goals and activities. It is an
effective approach that can overall plan the organisation objectives. Their main objective of this
is to attaining the targets related to understanding the customer’s perceptions and needs so that
business firm can maintain their existence for the long period of time. This study is based on the
Marks & Spencer that is the largest retail organization in UK and dealing in the varieties of the
product range such as financial services, food, clothing, perfumes etc. due to coronavirus is
struck in the world unexpectedly this will majorly affect the sales and profits of the retailing
business like Marks and Spencer. Due to this government can pass the rule of following social
distancing due to this customers cannot go for shopping as it directly impact the traditional way
of shopping. This project is based on how the M&Scan focus on providing the superior customer
service so that they can enjoy large market share and profits(West, Ford and Ibrahim, 2015).
This project study involves the PESTLE analysis of the M&S so that they can effectively
improve their activities and functions related to delivering the superior customer service. For
gaining the competitive advantage and maintains the brand image in the marketplace company
can use the porter's generic model that includes fives stages that helps in gaining the competition
and attracting the customers by providing quality services at the affordable cost in the time of
coronavirus. Further it inculcates the VRIO analysis for appraising the internal competencies so
that M&S can improved their services related to customers service. Further business
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organisation can make the SMART objectives so that proposed activity can be implemented
effectively and gives the good result to the company sustainability. At last this report develops
the strategic plan that is more important properly planning the selected approach so that company
may accomplish the targets and gain the profits by providing the superior customer service to the
target and potential customers. In making the strategic plan marketing mix is a special element
that helps in analysing the right way to deliver the goods and services to the customers so that
they conveniently buy the goods and services and loyal towards the organisation.
Critical analysis and evaluation of PESTLE factors affecting main objective of improving
organisation competitiveness by delivering customer service
PESTLE Analysis- It refers to that framework in which Marks and Spenser can evaluate the
environment that is very helpful in gaining the superior customer service and enhancing the
market share within the marketplace. Following aspects of the PESTLE can be shown below in
context of Marks and Spencer(Sahaf, 2019).
 Political factor- Marks and Spencer's have been producing their products abroad for
cheaper production in countries such as China, Cambodia, Vietnam, India, Turkey,
Bangladesh and Sri Lanka. They approach the political factors in a way that supports
their shareholders and stakeholders. The clothing and home supply chain is global with
many different suppliers. Their reputation for quality, innovation and sustainability is
built on an excellent long-term relationship with the suppliers. M&S believes that quality
or relationship should not be compromised. Overseas manufacturing is most preferred by
retailers as it is less expensive and allows the products to be produced in large volumes.
The volume produced can meet the market demands which is crucial for the company.
M&S do right by their suppliers and by their customers by providing the factory workers
fair wages and fair working hours. Customers want to know more about where the
products they wear and the services are manufactured so M&S have put all the
information on their website, so they are showing their work(Milichovskýand
Šimberová,2015). Due to Covid-19 pandemic Marks & Spenser can face a major problem
in their operations of the business due to this their success may be affected(Coronavirus:
UK economy could be among worst hit of leading nations, says OECD. 2020). As
Government can imposed the law of following social distancing and Locked down in the
countries due to this employees are working from home and also customers get the
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delivery usually in more time. Because of this company can deliver their products and
services with properly sanitised the parcel and using gloves when deliver, this will
attracts the customers by seeing this attractive service. But in the containment zone
delivery are prohibited due to this profit margin would be affected and company may face
the issue of low revenues.
 Economical factor- In 1999 M&S moved their production to foreign countries to help
them survive with the budget companies. The economic factors affecting M&S are the
competitive product prices from their oppositions. Price has always been the top concern
for customers however in the last decade there have been several budget retail stores
launching that serve all types of customers and on different platforms such as in-store and
online. The budget company often advertises similar products for a cheaper price that
attract customers. In this pandemic Marks and Spenser can supports their stakeholders
like customers and employees by providing services online without going outside so that
customers buy the products easily and employees effectively work without any tension
and maintaining social distancing. It also helps shareholders to get their returns on timely
manner within the three years of period. COVID – 19 was unexpected for everyone
however, M&S worked fast and efficiently to create a plan of action to support customers
as much as they can during the pandemic. The impact of COVID 19 is worst on the
economy of the UK and due to this it may affect the purchasing power of the M&S. In
this pandemic time UK economy can be declined by 11.5% in recent months of 2020.
But in this company can focused on their customer services so that they cannot reduce
their customers in the worldwide . In context of Marks & Spencer share was goes down
to 2.8% and their group sales also decline to 19.2% due to locked down. The sales related
to clothing and home appliances decline to 49.1%(COVID-19 effect: Marks & Spencer to
slash 7,000 jobs).
 Social factor- To be able to provide excellent customer service, a store in the retail
industry needs to work with the social factors affecting the company.As mentioned
before, M&S is a well-established brand that has won customers, heart, over 100 years.
Social factors may influence business decisions such as what stock to carry, the quality
has always been unbeatable however the younger generation are not too fond of the style
at M&S due to the new style of fashion that is sold at the budget stores. This was a
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massive opportunity for M&S to get on top of the competition. Customers product quality
is important in delivering superior customer service however to deliver the same level of
customer service is equally as important(David, David and David, 2017). As because of
customer perception are changes very frequently company may face the problem of
offering the trendy products with quality to their customers because of less focused on e-
commerce. For this M&S need to be properly researched the market by using effective e-
commerce so that they can get the best results regarding the customers taste. as company
deals globally so it is very essential to emphasis on the e-commerce market so that they
can easily identify the culture and values of customers in different countries and offering
them good as per that.
 Technological factor- One of the problems that retails including M&S face is the E-
commerce side of the business as that is still undeveloped and is hidden behind the
traditional in store buying. Online shopping is an increasingly popular option for
customers of all ages as it is easy, convenient and cost effective in a way. M&S have
adopted new technology is by providing their customers with an online website. Another
big trend was establishing an online store for customers to shop with ease. M&S take the
traditional approach by allowing their customers to shop online and deliver them their
products as well as offer click and collect to the customers desired M&S branch. The
service M&S offer in-store is clicked and collect if a customer wishes they can order the
product they want and, in their size, the next day to the store or delivery. Due to Covid 19
Marks & Spencer can highly focused on their E-commerce accounts as this helps the
company to grew their retail sales. It helps the company to gain in social factor by
providing convenient services to their customers using best technology.
 Legal factor- The legal factors that M&S along with other retailers must comply to are
company/contract law. These factors have been put in place to protect the customers and
employees for example their personal details. For employees it would be the details held
with the HR of M&S and for customers it would be the details saved on their online
website for shopping that is linked to their loyalty card. For their workers on operational
level manager of M&Scan follow the health and safety act on the working environment
by providing the insurance and medical facility to them. Also they treat employees on the
equality basis as there is no discrimination between male and females. This will helps in
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