Strategic Management Planning for Marks and Spencer

This document discusses the strategic management planning process of Marks and Spencer, a British multinational retailer. It covers topics such as environmental analysis, corporate and marketing objectives, marketing strategy selection, and market targeting and positioning.

STRATEGIC
MANAGEMENT
PLANNING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Environmental Analysis...............................................................................................................3
Corporate and Marketing Objectives...........................................................................................6
Marketing Strategy Selection......................................................................................................7
Market Targeting and Positioning...............................................................................................8
Assessment of 7P’s......................................................................................................................9
Implementation, Control and Evaluation...................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic Marketing Planning deals in developing various strategies which can help the
company to achieve the organisational objectives. The companies need to follow various steps
and systematic process including the setting goals and objectives, evaluating internal and
external business factors, product planning, implementing, tracking the progress and evaluating
the success (Boons and et.al., 2021). All these processes when combined together can help in
contributing towards the success of the business. Marks and Spencer is a British multinational
retailer headquartered in London, UK. This was established in 1884. The company deals in
clothing, food and various home products with its own label (Marks and Spencer, 2021). The
report will shed light on the environmental analysis of the company by making use of various
models. The corporate and marketing objectives of the company will also be highlighted in the
report. This will be followed by mentioning the strategies of the company by using the Ansoff
Matrix. Marketing segmentation, targeting and positioning of the company will be described.
Marketing mix of the company will also be discussed along with implementation, evaluating and
monitoring of the strategies.
Environmental Analysis
Brexit and COVID-19 impacted the retail industry in many ways. It is must to analyse the
current economic and environmental condition of retail industry so that the companies like
Marks and Spencer can develop and implement appropriate strategies for running the business
and maintaining profitability even at the time of pandemic and Brexit. This can be analysed that
the retail industry in UK contributes majorly in the economy of the country. This retail industry
in UK constitutes many large companies such as M&S, Asda, Lidl, Tesco, Sainsbury and many
more. This can be observed that the Brexit impacted the overall operations of these companies in
retail industry. This is because all these retail companies perform operations across various
countries in the world and also depends on the suppliers outside UK. There were complete
restrictions imposed on the supply chains especially when the raw materials are to be imported
from other countries and cities. This impacted the profitability of the retail companies like M&S
greatly because their companies need to improve their supply chains and also they need to
improve their channels and payments (Smith, 2018). In this, the companies invested lot of money
due to which they suffered financially. This can also be observed that as the impact of Brexit was
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decreasing, the pandemic of COVID-19 started and this completely destroyed so many
companies forcing them to fire the employees or shutting down their businesses. This is why, the
retail companies like M&S hit hard by Brexit and then by pandemic of COVID-19.
The environmental analysis helps in analysing the impact of macro-environmental or the external
factors which impacts the operations and profitability of the companies like M&S (PESTLE
analysis of M&S, 2020). The best tool which can be used for analysing the effect of macro-
environmental factors is the PESTLE model which helps in examining various external factors
like political, economic, social, technological, environmental and legal factors and its impacts on
the operations of the company. The PESTLE analysis of Marks and Spencer can be done as
below:
Political: These factors include taxes, restrictions from government and many more other
impositions. The decision of United Kingdom to leave the European Union is the most important
political factors which impacted the operations of Marks and Spencer. This was completely
unpredictable that where the company will stand after the Brexit especially in regards to trade
regulations and tariffs. The company though developed various strategies to solve this problem
of Brexit but the possible outcomes were less than ideal for the retailers of UK. The company
also faced the loss of numerous free trade policies with the European suppliers. This also
increased the cost for the end consumer greatly (Petetin, 2020). This is why the company strived
so hard to attract the customers and increase the customer base. This impacted the overall
profitability of the company. Also due to pandemic, there were restrictions on everything related
to mobility outside the homes. Due to this also, the customers’ behaviour changed and they start
preferring to order the materials online and getting them at the doorsteps. This is why; there were
many political restrictions for delivering products to the customers online which impacted the
overall operations of the company as well as growth and progress.
Economic: These factors decide the overall financial stability of the company. This is mainly
depended on the customers and their behaviour. This was also observed that when the products
of the company become non-trendy or not according to the demands of the customers, then the
products are not sold easily and the companies need to face the loss. At the time of Brexit, the
company Marks and Spencer faced financial loss because there were restrictions on trade and the
company needs to pay extra amount as compared to the real one for getting raw materials from
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the suppliers. Also there were many taxes imposed on carrying out overseas trade which is why
the company also need to pay extra taxes to the government. This created a major loss for the
company in the times of Brexit (Katsikeas, Leonidou and Zeriti, 2019). This is why, the
company increased the cost of its products which were not acceptable by the customers so the
customer based reduced thereby impacting the overall profitability of the company. Also, in the
times of pandemic of COVID-19, the company M&S had to develop various strategies for
running the business in this critical times when no campaigning can be done and even the
customers also changed their behaviour from offline to online because of being scared from
getting the infection of Coronavirus. This is why, the company need to shift its operations from
offline to online which needed lot of capital and also impacted the company financially.
Social: These factors deal in issues like changing of the customer’s needs and demands which
are affected by the ways in which company provides products and services to its customers. The
company faces various problems when the customers shift to other new companies who follow
the current trends. This was observed that the company Marks and Spencer strives hard to satisfy
the customers in any situation. But this can also be evaluated that due to Brexit which led to
increase in the cost of all the products, the customers hesitated in making purchase from M&S.
This also changed the behaviour of the customers (Mamun, Strong and Azad, 2020). Due to
pandemic of COVID-19, the customers started preferring making purchase from online stores
who can deliver the products at the doorsteps. This is why, their demands shifted from offline to
online and this affected the overall operations and the processes of the company.
Technological: These deals in the factors according to the modern trends. The self checkout is
the major factors which help the business owners in saving money which is spent on the cashiers
and this also offers customers a checkout experience which is comparatively faster. The
company M&S implemented self checkout systems at the stores but due to the pandemic of
COVID-19, the stores were closed and the customers did not come to the stores for making
purchase (M&S Plan, 2021). This is why; the company believed that this strategy did not help it
in facilitating the customers. Also, this was observed that the online shopping is the major
technological change which is needed in the company for attracting the customers. As the
pandemic started, the company felt the need to implement the innovative technologies such as
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online mode of shopping and various other modes. Before the issue of pandemic and Brexit, the
company did not feel the need for adapting the advanced technologies.
Environmental: These are the factors which decide the sustainability of the company. The
companies like M&S need to maintain their image as luxury brand and for this, M&S
implements various sustainable practices such as controlling the carbon emissions and reducing
the deforestation of farming land. At the time of Brexit and pandemic of COVID-19, following
the sustainability is the easiest method to increase the brand value and increase the goodwill of
the company (Sarker and Al Saeed, 2020). These measures also increase the trust and loyalty of
the customers in the company. Marks and Spencer also implement various environmental
friendly and renewable resources in producing various products. This is how; the company
maintains its sustainability and also helps in increasing the profitability of the company.
Legal: These are the rules and regulations which help in monitoring the companies and its
processes. The companies are monitored under the laws and regulations of the country and the
government (Küçük, Lenoël and Macqueen, 2021). At the time of Brexit, M&S need to follow
various laws because of the trade restrictions. It is must for the companies like M&S to follow all
the rules related to trade and tariffs. This can be observed that when the companies do not follow
the laws and regulations, then this can impact the company and its operations negatively.
Corporate and Marketing Objectives
These are the goals of the company which are conveyed to all the executives as well as
the employees of the company. Marks and Spencer is a business which deals in seeking to do
things in responsible ways. The various objectives of the company are as follows:
 Increasing the customer base by 50% till the end of 2021 (Quix and van der Kind, 2019).
 Increasing the overall profitability of the company by 40% before beginning of the year
2022.
 To run the business even at the times of pandemic of COVID-19 and increasing the loyal
and responsible customers.
 To identify the changing needs and the demands of customers, develop and implement
the strategies accordingly.
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 To maintain the stronger relations with the suppliers to facilitate trading at the time of
Brexit.
 To make use of various online platforms which can help in running business at the time
of pandemic of COVID-19.
 To increase the online customers by 40% after the outbreak of pandemic of COVID-19.
Marketing Strategy Selection
The companies need to develop and implement various strategies to achieve the
organisational objectives. There are various models which can help in selecting the strategies in
M&S. Ansoff Matrix is the most prominent model which can be applied to the company and can
facilitate the company in many ways like choosing the best strategy. This is also known as
Product/Market Expansion Grid which used by the firms like M&S for analysing and planning
the strategies for growth (Petrie and Norman, 2020). This matrix helps in showing four major
strategies which can be used in helping the firm to grow and also analyses the risk associated
with the strategies.
Market Penetration: This strategy deals in increasing sales of existing products to the existing
market. In this strategy there is less risk associated with it because there is no introduction of
new products and the new market. Less capital is needed in implementing this type of strategy.
M&S can use this strategy of market penetration by decreasing the prices of the products for
attracting the customers. In this time of Brexit and pandemic, the cost of products is increasing
which is shifting the customers to other companies (Quix and van der Kind, 2019). So M&S can
decrease its prices and also increase the promotion and distribution efforts. At this time of
pandemic, the company has opportunity to promote the products through online platforms. This
is why, the existing products can be promoted to existing markets.
Market Development: In this strategy, the firm enters new market with the existing products.
This means that the market of the company can be expanded to the new customer segments or
new geographic regions. This strategy proves to be successful when the company owns the
proprietary technology which can help in leveraging in new markets. The consumer behaviour of
the new marketplace must be not much deviated from the one which exists in the current
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customers (Mitchell and et.al., 2020). Marks and Spencer can implement the market
development strategy by catering to different customer segment, entering into new domestic
market, entering into foreign market etc.
Product Development: This strategy focuses on developing new product for catering the
existing market. This needs complete research and development for expanding the product range
of the company. Marks and Spencer can make use of this strategy after having strong
understanding of the current market and also knowing about the innovative solutions to meet the
needs of the customers and market (Brooks and et.al., 2021).
Diversification: This strategy helps the firm in entering the new market with new product. This
involves the greater risk because the company is not sure about the results of the new product
and new markets. There are various ways to earn profit in this strategy but the company needs to
perform complete research and development for making use of this strategy. There are various
potential synergies to be realised between the existing business and the new product or market.
Marks and Spencer can also use this strategy but it has various risks associated with it.
This is how; Marks and Spencer can make use of Market Penetration as larger capital is not
required in implementing this type of strategy. The existing products can be promoted in the
existing market at the time of Brexit and pandemic of COVID-19. The company must take more
risks by investing in new geographical areas because at this time of pandemic, there are more
restrictions on travel and supply chains and also due to Brexit, the business faced various
problems in obtaining the raw materials from other countries.
Market Targeting and Positioning
The STP (Segmentation, Targeting and Positioning) plays the most important role in the
behavioural patter of organisation. This helps in understanding the customers and developing the
product which can be related to the customers. Marks and Spencer must use demographic
segmentation where the segments are done on the basis of gender, age, education etc. This
pattern of behaviour also helps in determining the consumer’s retention on the products. The
target of the company must be the customers of UK because in the critical time of Brexit,
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overseas dealing was difficult and also in the times of pandemic it is difficult to deal with the
customers who reside outside UK so the company must target the major customers of UK. The
positioning of the products of company must be according to the needs of the customers. This is
how; M&S can perform its Segmentation, Targeting and Positioning.
Assessment of 7P’s
Marketing Mix focuses on 7Ps of marketing which helps the company in developing
various strategies related to these P’s. The marketing mix of the company M&S is as follows by
considering the Brexit and pandemic situation:
Product: This category defines the products in which the company must deal. Marks and
Spencer deal in the food products, clothing for men, women, children, home products and many
other products (Marketing Mix of M&S, 2020). At the time of pandemic, the company must
ensure that all the products of the company must be completely sanitised and are produced by
taking all the preventive measures.
Pricing: The company M&S must reduce the prices of the company from premium to affordable
which can attract the customers at the time of pandemic because the financial condition of the
people out there is decreasing day by day which forces them to take the products of low cost.
This is why; the pricing of the company must be dynamic.
Place: The best place to sell the products at the time of pandemic must be online sites, social
networking sites and other digital platforms which can help the customers in ordering the
products and also the company can deliver at their doorsteps (Marks and Spencer 7 P’s, 2019).
Promotion: The promotion of the products must be on the online platforms through established
websites and social networking sites.
People: The people of the company must be loyal and challenging so that they do not leave the
company in tough times and can support it.
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Process: M&S must follow the same procedure including the offers, discounts, loyalty programs
etc. but must organise everything on the online platforms virtually.
Implementation, Control and Evaluation
The marketing strategies mentioned above must be implemented efficiently and must
monitored regularly so that the things which are giving good results can be continued while the
other things which are not giving good results must be eliminated (Korir and et.al., 2021). This is
how; KPIs and benchmarking can also be done by analysing the strategies of its competitors like
Tesco, Sainsbury etc. This helps in gaining greater competitive advantage to the company.
CONCLUSION
The report above shed light on the strategic marketing of the Marks and Spencer
especially in the times of Brexit and pandemic of COVID-19. The environmental analysis of the
company was done by using PESTEL model. The Ansoff matrix was used to analyse the
strategies which can be implemented in the company. The marketing mix of the company was
described by focussing on 7 P’s of marketing. Also the STP of M&S was done to target specific
customer segment. This is how, the strategies were also evaluated and monitored.
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REFERENCES
Books and Journals
Boons, F. and et.al., 2021. Disrupting transitions: qualitatively modelling the impact of Covid-19
on UK food and mobility provision. Environmental Innovation and Societal Transitions.
Brooks, C. and et.al., 2021. A Review of Food Fraud and Food Authenticity across the Food
Supply Chain, with an Examination of the Impact of the COVID-19 Pandemic and
Brexit on Food Industry. Food Control, p.108171.
Hayat, K. and et.al., 2019. Impact of Green Marketing Mix (4Ps) on Firm Performance: Insights
from Industrial Sector Peshawar, Pakistan. Sarhad Journal of Management
Sciences. 5(1). pp.143-156.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a
digital era: opportunities, challenges, and research directions. International Marketing
Review.
Korir, L. and et.al., 2021. Current and Emergent Economic Impacts of Covid-19 and Brexit on
UK Fresh Produce and Horticultural Businesses. arXiv preprint arXiv:2101.11551.
Küçük, H., Lenoël, C. and Macqueen, R., 2021. UK economic outlook: Brexit Britain in Covid
recovery ward. National Institute Economic Review, 255.
Mamun, M.A.A., Strong, C.A. and Azad, M.A.K., 2020. Islamic marketing: A literature review
and research agenda. International Journal of Consumer Studies.
Mitchell, R. and et.al., 2020. The impact of COVID-19 on the UK fresh food supply chain. arXiv
preprint arXiv:2006.00279.
Petetin, L., 2020. The COVID-19 crisis: an opportunity to integrate food democracy into post-
pandemic food systems. European Journal of Risk Regulation, 11(2), pp.326-336.
Petrie, K. and Norman, A., 2020. Assessing the economic implications of coronavirus and
Brexit. London: Social Market Foundation.
Quix, F.W. and van der Kind, R.P., 2019. Retail marketing (pp. 17-46). Routledge.
Sarker, T.R. and Al Saeed, L.S.L.A., 2020. Benchmarking Marketing and Business Strategy of
UNIQLO to Start-up a Retail Shop in Bangladesh. Benchmarking, 12(2).
Smith, P.R., 2018. C5 electric car: failure of a marketing strategy. The Business & Management
Collection.
Online
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M&S Plan, 2021. .[ONLINE]. Available through:
<https://corporate.marksandspencer.com/documents/plan-a/plan-a-2025-
commitments.pdf>
Marketing Mix of M&S, 2020. .[ONLINE]. Available through: <
https://www.mbaskool.com/marketing-mix/services/17122-marks-and-spencer.html>
Marks and Spencer 7 P’s, 2019. .[ONLINE]. Available through:
<https://www.marketing91.com/marketing-mix-of-marks-and-spencer/>
Marks and Spencer, 2021. .[ONLINE]. Available through:
<https://www.marksandspencer.com/>
PESTLE analysis of M&S, 2020. .[ONLINE]. Available through:
<https://www.swotandpestle.com/marks-and-spencer/>
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