Strategic Marketing on Marks and Spencer Assignment

INDIVIDUAL MANAGEMENT
REPORT(STRATEGIC
MARKETING)

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................1
INTRODUCTION...........................................................................................................................1
PESTLE (China)687........................................................................................................................1
MARKET ENTRY OPTIONS........................................................................................................3
MARKET SEGMENTATION .......................................................................................................5
PORTER'S GENERIC STRATEGY ..............................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
Strategic marketing is the way or the approach through company can utilisation its
resources and gain market advantage growth. However, the present study has been based on
strategies which described the different approaches of market entries, to analyse business
environment etc. The based on M&S that will be opening the new operations in China market by
launching the new electronic gadgets. However, report also applied different strategies or
techniques through company gained competitive market growth.
INTRODUCTION
Marketing is the plan or the business strategy for reaching people and turning them into
customer of the product or services. The main purpose of the marketing strategy is to attract the
target markets and the value proposition that will be offered based on the analysis . However, the
present study will be base on strategic marketing of M&S will be explains the expansion strategy
for China. However the present report will outline the Country specific PESTLE analysis that
covers the opportunities and threats that the company could face as well as possible solutions to
such threats. Also it explains about the market segmentation and targeting in general terms and
show the client could targeting for the new product expansion of M&S that is electronic gadgets.
Furthermore, it explains about the porter's generic strategy where it explains critically analyse
why it will be best suited strategy for the company. Overall, the present report will be abstract
the whole strategic marketing for the new expansion growth.
PESTLE (China)
China has a wide scope for service sector which contributed approximately 50% to the
total GDP in 2015. In this share retail market has contributed approx 9.8% in 2015. in the
context of government of China they also support to service sector organisations to improves the
business climate of the country (Camilleri, 2018). However, for expansion the business in China,
M&S has to go through from the external market analysis by the help of PESTLE Analysis.
Political : Political factors become very difficult for those companies who operates its
business at different places. Business needs to followed the policies, regulatory implications that
imposed by the host country. But companies in China enjoys the business because of strong
political system of the country that can be beneficial for the M&S to boost the business growth.
But on the same side, China political factors can be influenced by legislations, tax, interest rates,
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democratic change etc. That might be not healthy for the business growth sometimes. So
however, this is the positive sign for M&S to get into the business in China.
Economical : Economical factors define the economic conditions of the country is good
or bad. Weather company will gain enough profit in future or not by setting high prices. So in
terms of China from last five years, china got excellent growth rate in GDP. China has effective
rate of savings that also shows the positive sign for M&S to open the store in China. Another
positive factors that company could gain is cheap labour cost and various leading companies are
hiring the workers to increase their cost (Chen and et.al., 2018). On the same side, economic
factors also get affect the business due to high inflation rate and interest rates. For Example :
High inflation rate can increases the prices of product or services in that case company might
having low sales volume profit. For the businesses this situation sometimes affect the overall
growth and productivity.
Social : Social factor of the external business environment is highly influenced by the
demographic factors of the society. Such as age distribution, culture, values, religion of the
people. All such factors impact negatively on the business sometimes. Social factor is highly
potential factor that affect the business directly ineffectively. They can have power to change the
cultural aspects of the country. This can have the best potential growth system that makes the
company more challenging and ineffective. M&S has to imply the strategies that makes the good
impact on the society and people to gain good image in the china competitive market.
Technological : Technological factor of the business environment is highly profit
earning growth. It also helps to make the best following target opportunity and makes the best
development results and goals (Collinson, 2015). There are some of the technological factors,
which are involved in development of new products. It is also noted that the Chinese market has
very low credit card penetration in china which is widely used across the world as the effective
and fast payment method. This factor has usually motivated and influencing the work into more
detailed and efficient manner. By the help of technologies company can also influenced to doing
the online business and make the task easy for the clients. It has been analysed that 24% of the
China's digital shoppers had made a across border purchase this year lifting the market value by
15% year over and over.
Legal : As the e-commerce is flourishing and the government has started working on the
formulation of legal framework in order to protect those areas and growth for the better
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protection areas and growth system. Legal framework of China is very strong and efficient to
prevent the business as well as the environment. Apart from that, it also gaining the demanding
working opportunity to take the work more effectively presentable. Company has to adopt and
take the new step towards making the best style of opportunity and growth for the business.
Environmental factor: Environmental factor is the significant factor for the protection
of business environment. China government focus on the new technologies that grow the
environment friendly atmosphere and make the best performance areas. China is the most
attractive place through company can manage the best reputation among the all areas. M&S also
need to reduce the the work opportunity task. To make the environment clear and growing.
MARKET ENTRY OPTIONS
Strategic Alliances : Strategic Alliances is an agreement between two or more than two
companies that wants to pursue a set of agreed objectives needed while remaining independent
organizations (De Villa, Rajwani and Lawton, 2015). In other words, All the parties mutually use
their resources for the specific objectives. This is the best way to control the all activities and
growth in different growth. This market entry mode can help all the parties to equally earn the
profit and business growth. Another benefit of this approach is to share resources specific
alliance agreement could help company to develop a more effective process. M&S can adopt this
mode of entry by the help of other party.
Acquisition : This is the process where the one company buy the other company and get
hundred percent share to gain the control over that business. This can be happened for various
reasons such as to enter into foreign market or for growth and for gain the reputation and market
growth etc. M&S can take this approach to expand the business in China market.
Direct Exporting : Direct exporting is the way or route to selling own product or
services at the new places by the help of mediators or distributors. This is the best way for those
companies who wants to make the popularity of the brand first and then open the individual store
in that particular place. In this route mediators are become the face of the brand and handled the
all functions of distribution.
Franchising : Franchising is the another route or method that company could adopt for
rapid growth of market in China (Efrat and Shoham, 2015). Generally it has been seen that,
franchising is the model that generally acquired by those companies that have a repeatable
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products like Food outlets. For this method it is very required for the company to have some
unique strategy to present the product in front of the China market.
Licensing : This method define the process in which one company sell its rights to other
firm. This approach generally helpful when the purchaser of the company is already have high
market share in that particular place. Majorly, the reason behind this approach is to attract the
customers.
Foreign Direct Investment : Foreign direct investment is the direct ownership of
facilities in the target country. In this function the company required to transfer the resources,
technology, capital, personnel and another effective learning goals. That helps to bring the
leading opportunity gain. This approach is more beneficial and strong to analyse the consumer
preferences and competition in the market. However, it also helps to bring the leading change
and make the work outcomes more effectively presentable. On the same side, this method of
approach also requires a high level of resources and investment.
Green field Investment : This is the new approach to get entered into the new place it
requires the greatest involvement in the international business market opportunity that makes the
fruitful results and goals (Fozer and et.al., 2017). A green field investment requires the another
opportunity gain to meet consumer demand. This been the great opportunity and task that
company adopts . It is very approachable and ongoing business approach for a foreign market. It
is certainly the most costly and holds the highest risk but some markets may require to undertake
the cost and risk due to the government regulations.
Justification
M&S should recommended the Franchising strategy to get into the market position in
China. Along with that, it also helpful to gain the market opportunity and bring the best
advantageous goals and objectives. Like M&S can sell its individual franchisee to the other
business. Along with that, other reason to adopt this strategy is to gain the business failures that
reduced the matter of fact that makes the business more profitable and energetic.
By the help of franchisors it also helps to enable the business to compete with the biggest
competitors. Due to the pool of support from the franchisor and network of other franchisees.
However, franchising team can also very fruitful to increased the faster growth, increased
probability in order to be in the bet place or marketing the effective growth. Along with that, it
also helps to gain the competitive. Long lasting results, in order to be in the best following
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results. Buying a company is the another approach that existing local company may be the most
appropriate entry strategy. In franchising business does not need to maintained the relationship
with suppliers (Hernández and Nieto, 2015). Because it has already been exist in the competitive
market. In other words, financing business become easier to those brands who already gain a
good reputation in the market. So to those firms bank can easily lend money to buy a franchisee
with a good reputation.
MARKET SEGMENTATION
Meaning of Market segmentation & Targeting
Market segmentation is the process of dividing a market of potential customers into a
group. Market segmentation is the research that determines how the organization divides its
customers into different sections as per the needs and wants of the organisation objectives.
In other words, Market segmentation is the helpful approach that helps company to
reduces the risk of ineffectiveness of marketing campaign (Widya Yudha, Tjahjono and Kolios,
2018). Company have to focus on the key target market buyers in order to gain the buyers
attraction level for the new product development in China.
By understanding the target group of audience it will be easier for M&S to leverage this
targeting in product, sales, marketing strategies. In order to set the target customers there needs
to be done by the company to target about the best growth within the business to deal with the
challenging growth.
STP -Segmentation, Targeting and Positioning
Segmentation : Segmentation is the first approach towards setting the competitive customers
planning. However, there are some segments of the target market. Such as given below:
Demographic : In order to attract customers towards the electronic gadgets company
should needs to be focus on the buyers age, gender, region, city and etc. so before going next
(The STP Model of Marketing Segmentation, Targeting, and Positioning, 2019). M&S needs to
decide the consumer age, gender of the target buyers. So accordingly M&S try to focus on young
generation those who are loved to use innovative gadgets.
Geographic : Geographic target is basically focused on country, region, city etc. in
which country company wants to sell their new product. So accordingly, M&S will expand the
business into China.
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Psycho graphic : This term define the customers personality, values, lifestyle, attitudes,
interests and opinion. In this context M&S should ensure that to whom they want to approach
and how its product will going to attract buyers as well.
Behavioural : Next segment is behavioural approach that refers that consumer will going
to use the selected product. In other words, weather product will be liked by the buyers or not.
All such aspects needs to be considered by the company before selling product into the market.
Targeting : After clear about the segments next step would be targeting that each segment have
to be profitable for the Marks & Spencer (Hingley, Lindgreen and Grant, 2015). Company
should ensure that there will be a getting good rate of return on the product investment. For that,
company can also analyse the market and customer actual needs and wants in order to measure
the requirements. In this approach M&s also make sure about the China legal implications,
technological and social hurdles that might be affect business from addressing the segment.
Positioning : Positioning is the last approach towards setting the potential market. However, this
step defines how company will place the product in front of their target segments or customers.
For that, company needs to focus on advertisement and marketing activities that promote the
business into the upward manner. The most important question that company has to answer that
what unique quality does product have which is different from competitor.
Justification
M&S approach to younger people who loved to access new electronic gadgets. Younger
people of today's generation is very sharp and intellectual that easily understand the features of
electronic items and make the bad or good review accordingly. So that is why M&S approach to
younger generation people. However, China is the best place where they launch new electronic
items. It has been analysed that China electronic items are less durable as compare to other
brands. So this is the best approach to launch the new innovative gadgets for younger people
with long durability grantee (Hollender, Zapkau and Schwens, 2017).
PORTER'S GENERIC STRATEGY
Cost Leadership : The first approach of porter model that approach to lowest cost
producer in the industry that is mainly beneficial to produce on large scale. The traditional
method of this approach is to measure the long term growth. In other words, this approach of
cost leadership requires close observation between all functional areas of a business. To be the
lowest cost producer a firm is likely to get the several options such as high levels of productivity,
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high capacity utilisation. Business can also effectively using technology in the production
process.
Cost Focus : In this approach where the business needs to required to focus on the cost
factor to gain the cost advantage from the target customers (Phillips, 2016).
Differentiation Focus : In the differentiation focus strategy a business aims to
differentiate within just one or small number of target market segments. In this process company
focused on the products line that helps to gained the customer focus or attention towards the
brand. Majorly this approach is useful for those brands which deals with single product. Such
process pressure companies to focus on the quality as well as products.
Differentiation Leadership : This approach or porter strategy suggests business to focus
on to gain competitive advantage through differentiation across the whole industry. However,
this approach focus on the product quality and try to address all criteria of buyers in terms of
product or services. However, there are different benefits could company get like re-positioning
the branding image, superior product quality, promotional support etc. for example : M&S
already gained a strong brand positioning across the UK (Song, Sun and Jin, 2017).
Justification
As per the study of above strategies of porter's it has been analysed that M&S should
need to focus on the product quality rather than other elements to get good attention from the
buyers (Paley, 2017). For the first time customer only attracts by unique product identity or
product durability which makes the brand different from the competitors. However, it must be a
difficult one but on the same side it is also very beneficial for M&S to gain buyers attention and
gaining competitive advantage. There are various reasons for which company needs to adopt this
approach such as given below :
Differentiation creates values : Differentiation approach is more beneficial for M&S
which helps to focus on the cost value of the product versus other similar products on the
market. By applying this porters strategy company could gain better results from the China
market. Majorly this approach focus on designing the product quality rather than other.
Value of Brand Loyalty : In order to justify the strategy this is the another benefit of this
strategy to gain the brand loyalty value in the market. Because customer invest money on those
products that are more useful and durable in long time (Saenko and et.al., 2016). All along this
helps to generate the better growth and effective learning targets.
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No-Perceived substitute : This is the another beneficial way to lead the market when
the company product is the only single product which deals in the market (Shamout, 2016).
CONCLUSION
As per the above report it has been concluded that, strategic marketing is the most
essential way to promote the business growth and expansion way to gain buyers attraction.
However, the study also explained about the marketing aspects of the business that makes the
best strategic marketing position and gain the different opportunity and goals. Along with that,
study also analysed the business environment factors by analysing the approach or market
opportunity and gain by the help of PESTLE analysis. Also it define the market segmentation or
target market customers in order to make the work more easier. Report also outlined the market
entry mode for M&S to get entered into the study. Moreover, at the end of the segment company
also generate the porter generic strategy to analyse the actual competition level within the
organization.
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REFERENCES
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Untangling the moderating effect of the political environment. International Business
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Efrat, K. and Shoham, A., 2015. Determinants of Entry Modes and Performance of
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Sustainability(pp. 100-100). Springer, Cham.
Fozer, D. and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
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Hernández, V. and Nieto, M. J., 2015. The effect of the magnitude and direction of institutional
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pp.122-132.
Hingley, M., Lindgreen, A. and Grant, D. B., 2015. Intermediaries in power-laden retail supply
chains: An opportunity to improve buyer–supplier relationships and
collaboration. Industrial Marketing Management, 50, pp.78-84.
Hollender, L., Zapkau, F.B. and Schwens, C., 2017. SME foreign market entry mode choice and
foreign venture performance: The moderating effect of international experience and
product adaptation. International Business Review, 26(2), pp.250-263.
Paley, N., 2017. How to Develop a Strategic Marketing Plan: A step-by-step guide. Routledge.
Phillips, A., 2016. How books are positioned in the market: Reading the cover. In Judging a
Book by its Cover (pp. 41-52). Routledge.
Saenko, N. R. and et.al., 2016. Research in action integrated marketing communications as the
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Shamout, M. D., 2016. The impact of promotional tools on consumer buying behavior in retail
market. International Journal of Business and Social Science, 7(1), pp.75-85.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy
incineration industry in China. Renewable and Sustainable Energy Reviews, 80, pp.276-
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Widya Yudha, S., Tjahjono, B. and Kolios, A., 2018. A PESTLE policy mapping and
stakeholder analysis of Indonesia’s fossil fuel energy industry. Energies, 11(5), p.1272.
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online
The STP Model of Marketing Segmentation, Targeting, and Positioning. 2019. [Online].
Available through <https://devrix.com/tutorial/stp-model-of-marketing-segmentation-
targeting-positioning/>.
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