Strategic Marketing: Analysis and Recommendations for Marks and Spencer

This project analyzes macro-environmental factors, market-entry modes, market segmentation, and Porter's generic strategies for Marks and Spencer.

Strategic
Marketing

EXECUTIVE SUMMARY
From the project it has been summarised that strategic marketing is a procedure to supply
finished goods of producers by distributing it to their potential customers. The client selected for
Ashanti Marketing Solution is Marks and Spencer as being the major British multinational retailer
with it’s headquarter in London. This project analyse macro-environmental factors are described
through PESTLE analysis, that create opportunities and threats for company. It further assesses
various modes of market-entry that are strategic alliance, joint venture, Foreign Direct Investment,
merger and acquisition. It further applies the concept of segmented market with demographic,
geographic, psychographic and behavioural market. The target marketing is further categorised as
undifferentiated, differentiated, focus and customised target market to evaluate potential consumers of
business. This project demonstrates Porter’s generic strategies which help to gain competitive
advantage for business.

Table of Contents
EXECUTIVE SUMMARY...................................................................................................................2
INTRODUCTION.................................................................................................................................4
MAIN BODY........................................................................................................................................4
1. Analysing the macro-environmental factors which create opportunities and threats for company
by recommending possible solutions.................................................................................................4
2. Critically assess three modes of market-entry and recommend the most appropriate for
organisation.......................................................................................................................................5
3. Apply the concept of market segmentation and targeting for critically evaluating the potential
target market......................................................................................................................................7
4. Demonstrate Porter’s generic strategies which helps to gain competitive advantages...................8
CONCLUSION.....................................................................................................................................9
RECOMMENDATIONS.......................................................................................................................9
REFERENCES....................................................................................................................................10

INTRODUCTION
Marketing is the set of activity which perform its actions to develop customer relationship
services by supplying finished goods from producers to its end-users for providing them high level of
satisfaction. The strategic marketing refers to build market knowledge by analysing the demand of
buyers and provide information with needs, desire and wants of their consumers which are to be
fulfilled by producing qualitative finished goods (Abratt and Bendixen, 2018). The client selected for
Ashanti Marketing Solution is Marks and Spencer as being the major British multinational retailer
with it’s headquarter in London. It is specialised for clothing sector and wants to explore at another
country by entering in Bulgaria with its specialised product. This project analyse macro-
environmental factors that create opportunities and threats for company by critically assessing three
modes of market-entry. It further applies the concept of segmented and target marketing to evaluate
potential consumers of business. Additionally, this project demonstrates Porter’s generic strategies
which help to gain competitive advantage for business.
MAIN BODY
1. Analysing the macro-environmental factors which create opportunities and threats for company by
recommending possible solutions
The business environment consists of both internal and external atmosphere that creates
competitive advantage for an organisation through intrinsic strength to control weakness and extrinsic
opportunities to overcome threats. Managers of Marks and Spencer focus on the macro-environmental
factors of business that create competitive strategies to compete with rivalries such as Macy’s Next,
ALDI, Tesco, ASDA, etc.
The managers of Marks and Spencer expand their business by exploring it in Bulgaria for
enlarging customers to consume more of their qualitative products in clothing sector. It is essential for
organisation to utilise full scarce resources effectively for maximising their opportunity for growth
and stability in global market. This further describes the macro-environmental factors that either
positively or negatively impact business for accomplishment of organisational goals and objectives. It
applies PESTLE analysis to determine the factors with reference to managers of Marks and Spencer is
as follows:-
PESTLE Analysis:- This is a concept of marketing principle used as a tool by company to
track and monitor the business environment in which managers plan to launch a new product or
service. Managers of Marks and Spencer implement this framework as to analyse the factors that
affects the stability of business in achieving success. These factors are categorised below as:-
 Political:- This element includes political leaders, fiscal and monetary policy, trade tariffs,
stability or instability, labour and environmental law, corruption, etc. Managers of Marks and
Spencer are favourably affected as the rules and regulations are authorised by government of
United Kingdom which does not change continuously (Bolat, 2017). The managers are
positively impacted by their strategic decision making procedure as it remains same and
provide systematic chain to achieve the organisation goal.
 Economical:- The determinant consists of interest rates, wages and salary, foreign exchange
rates, etc. Managers of Marks and Spencer are directly and indirectly affected as they are
bound to pay minimum wages to employers for their survival of livelihood. The company is

adversely affected by the economic factor as managers have to create job opportunities for
labours that result in high cost of their clothing sector which reduce their consumption.
 Social:- This factor involves religion, buying habits, family size and structure, education
level, population density, etc. The managers of Marks and Spencer are adversely affected as
the increasing birth rate in population density develops modernisation among the demand of
target market in accordance with their changing taste and preference. The company is
negatively impacted as the birth of babies fluctuate the requirements of their existing
customers as well as also upgrades lifestyle with their nature, culture and costumes. The
Marks and Spencer generate competitive advantage by allowing customers to pay for their
clothing sector through digital marketing with credit cards that result in increase sale (Casidy
and Wymer, 2018).
 Technological:- It is the variable that includes technological equipments such as machines,
softwares, automation, innovative ideas, etc. Managers of Marks and Spencer are favourably
affected as the business is capable to supply their products through digital marketing by
delivering diversified customer experience. The company is positively impacted by creating
agile, faster and commercial technology of business that attracts customers to modernise their
lifestyle.
 Legal:- This external macro-environmental factor involves legal and lawful obligations,
securities, male and female employment, immigration, consumer protection rights, etc. The
managers of Marks and Spencer are adversely affected as they have to implement Health and
Safety Work Act, 1974 for providing them security while performing task in company. It is
further negatively impacted as they have to train and develop the skills of their employees by
directing and guiding them to complete their actions effectively which increase more cost and
time.
 Environmental:- It is also termed as ecological factor which consists of biotic or abiotic
elements that includes temperature, oxygen, agriculture, weather and climate, infrastructure,
etc. Managers of Marks and Spencer are adversely affected by environmental disasters such
as drought, earthquake, tsunami, environmental pollution, cyclones, etc. The company is
negatively impacted as the business affects by global warming that most probably creates
threats for delaying in achievement of success (Chapman and Sadd, 2014).
2. Critically assess three modes of market-entry and recommend the most appropriate for organisation
Market-entry:- This market strategy of business is most probably applied by managers for
strategic decision making in planning as to produce specialised product to attract customers while
entering in global market. It is further described as the ability of start-up business to enter in perfect
competition market with their differentiated product to enlarge target market. The managers of Marks
and Spencer focus on market entry as to explore their specialised clothing sector in Bulgaria to
expand business for maximising revenue and profits. There are four types of market-entry which are
categorised with reference to managers of Marks and Spencer is as follows:-
Strategic Alliance:- It is considered as the agreement between two or more parties as to
perform their actions for specific target with particular duration as an independent company. This
excludes the procedure of partnership agency and corporate affiliated relationships as to complete
their task for specific target (Chiarini, 2015). Managers of Marks and Spencer can form strategic
alliance as to enhance their brand value by increasing awareness of product among customers through
promotion.

 Advantage:- Managers of Marks and Spencer are advantageous as they are able to expand
business by achieving success efficiently that creates opportunity for growth and stability of
business.
 Disadvantage:- The managers of Marks and Spencer face various challenges such as unable
to build employee relations, increase of conflicts, distrust, etc.
Merger and Acquisitions:- Merger is defined as two small business merge themselves as to
share their assets and liabilities with each other for expanding their business. Acquisition refers to
acquire one company from another business as to reduce liabilities by sharing assets. The managers of
Marks and Spencer focus on merger and acquisition of enterprise to compete with their rivalries
through their enlarge customers and enhancing market share. This further develops an opportunity for
business to restructure and reorganise their strategic decision making procedure for maximising
revenue and profitability ratios.
 Advantage:- The managers of Marks and Spencer are beneficial as they develop competitive
strategies to compete with their rivalries through their increase market share.
 Disadvantage:- Managers of Marks and Spencer are not much benefited as they have to
reorganise their strategic decision making for planning with innovative ideas that consume
more time and delay in goal accomplishment (D’Andrea, 2019).
Joint Ventures:- It refers as contract with legal and lawful objective of an agreement to share
their resources, risk and ownership to accomplish specific target for maximisation of market share.
The managers of Marks and Spencer can implement this market-entry for sharing assets and liabilities
to reduce debts of other business with the motive to emerge in large enterprise.
 Advantage:- Managers of Marks and Spencer are helpful as they undertake more risk
effectively with the motive to attain high return in future to achieve success efficiently.
 Disadvantage:- The managers of Marks and Spencer are not helpful as they have to share
their assets with another company by taking their liabilities that is sometimes difficult for
company to attain profits.
Foreign Direct Investment (FDI):- This refers as one company invest its money in another
country with the ability to utilise scarce resources effectively that result in accomplishment of success.
It is the commencement for start-up business with various types of foreign business operations to
expand firm for achieving organisation goals and objectives efficiently. The managers of Marks and
Spencer focus on Foreign Direct Investment as it result in development of high capital generation to
maximise profit-margin.
 Advantage:- The managers of Marks and Spencer are profitable as they invest in another
country to expand their business with foreign business operations to generate high capital for
maximising profits.
 Disadvantage:- Managers of Marks and Spencer are not highly profitable as they are not able
to properly analyse the ups and down circumstances in another country that create threats for
business (Dolnicar and Ring, 2014).
From the above discussed market-entry, managers of Marks and Spencer must adopt Foreign
Direct Investment (FDI) as their will not be high competition and it is expanding business in another
country as Bulgaria. This explores enterprise for supplying its product for clothing sector at fewer
prices to increase its sale with full utilisation of scarce resource to attain success.

3. Apply the concept of market segmentation and targeting for critically evaluating the potential target
market
Segmented Market:- This refers as to segregate small group of people from the whole
market to focus on those customers for satisfying their needs, desire and wants. Managers of Marks
and Spencer implement this market segmentation as to meet the requirements of end-users by
supplying them qualitative cloths as to fulfil their desire. There are different types of segmented
market which are mentioned with reference to managers of Marks and Spencer is as follows:-
 Geographic:- It is the procedure to segregate potential consumers for their interest, taste and
preference that varies in accordance with cities, states and nations. The managers of Marks
and Spencer use this to analyse needs, desire and wants of customers that result in high
demand while supplying product (Farhangmehr, 2015).
 Demographic:- This refers as to discriminate target market in accordance with age, gender,
qualification, family size, occupational income, etc. Managers of Marks and Spencer focus on
this segmentation as to analyse demands of customers that are to be pleased by distributing
qualitative product of clothes for their high satisfaction.
 Psychographic:- It is defined as the market segmentation of potential customers on the basis
of their values, interests, attitudes, lifestyles and opinions. This increase the ability of
producers to target their buyers through surveys, interviews and case studies. Managers of
Marks and Spencer use this to segment their end-users with their various lifestyles, cities,
values, etc. It further creates opportunity to produce cloths as per the desire of their target
market.
 Behavioural:- This market segmentation focus on various styles adopted by their customers
to purchase product which includes the ability to utilise the product for achieving their
satisfaction level. Managers of Marks and Spencer target their end-users to utilise their
products effectively that result in fulfilling their requirement by producers to achieve success.
From the above mentioned segmented market, managers of Marks and Spencer must adopt
demographic segmentation that varies in customers income, education, family size, etc. It creates an
opportunity for growth and stability of business by supplying qualitative products with specialisation
that provides high level of satisfaction to customers.
Target Market:- It refers as to target small group for their specialised demand which are to
be fulfilled by manufacturers through producing high quality products at which they are ready to pay
high prices. Managers of Marks and Spencer target their potential consumers for maximising their
revenue and profits through direct and indirect channel of distribution. This results in satisfaction of
target market by creating opportunity for growth and stability in global market (Masterman, 2014).
 Undifferentiated:- This refers as consumers are king for an organisation as producers focus
on their continuous change in taste and preference of product that fluctuate demand.
Managers of Marks and Spencer concentrate on demands of their target market for
maximising revenue, profits and market share.
 Differentiated:- It is also known as multi-segment marketing, that refers to generate
specialised marketing mix of product that attracts customers to purchase more for achieving
high pleasure. Managers of Marks and Spencer focus on the requirement of end-users and
develop strategic decision making procedure with innovative ideas as to meet the needs,
desire and wants of buyers.
 Focus:- This is also termed as concentrated targeting in which producers target their
customers through single marketing mix. The main purpose of business is to design and

develop specialised product for enlarging customers that result in their support and loyalty.
Managers of Marks and Spencer use this to research and develop the product in accordance
with requirement of customers by utilising full scarce resources to attain success in global
market (Perez-Rivera, 2015).
 Customised:- It is the procedure adopted by producers to position their finished goods and
services through direct and indirect channel of distribution. The manufacturers promote their
product by advertisements, sales promotion, marketing research, etc. Managers of Marks and
Spencer analyse the requirements of their consumers through questionnaire, survey and case
study. It creates an opportunity for business to develop its competitive strategies that leads to
remain stable in perfect competition market.
From the above mentioned targeting market, managers of Marks and Spencer must adopt
focus or concentrated target market as it increase the marketing strategies of business through single
marketing mix. It also improves efficiency of enterprise in achieving its organisational goals and
objectives with maximising revenue, profits and market share (Sood and ed., 2017).
4. Demonstrate Porter’s generic strategies which helps to gain competitive advantages
Perfect Competition Market:- This refers as the market which consists for large number of
suppliers selling their products to large number of buyers that creates high competition in global
market. Managers of Marks and Spencer wants to expand their business by entering in Bulgaria with
their specialised clothing sector for enlarging customers that result in high revenue and profits.
Porter’s Generic Strategies:- It is defined as the generic strategy that analyse and
determines the competitive strategies adopted by competitors of an organisation that might create
threat for instability of business. Managers of Marks and Spencer implement this Porter’s generic
strategy as to maximise their revenue by enlarging customers for earning high profit-margin. These
strategies are described with reference to managers of Marks and Spencer is as follows:-
 Cost Leadership:- This procedure focus on manufacturing the qualitative products with
least-cost effectiveness. It attracts large numbers of customers to purchase finished goods as
to fulfil their requirements. Managers of Marks and Spencer use this strategy as to maximise
revenue and profitability by enlarging target market.
 Differentiation:- It refers as to produce specialised product with innovative ideas through
strategic decision making that result in achievement of organisational goals and objectives.
Managers of Marks and Spencer can use this differentiated target market to specialise their
features of cloth such as washable, not getting print of, durable for long time, etc. It is the
ability of producers to increase their brand image and reputation to enlarge customers for
superior quality products.
 Cost Focus:- This describes as the procedure to minimise the cost of product for their
selected target market by supplying products with total quality management at fewer price to
increase sale. Managers of Marks and Spencer use this strategy as to develop consumer
relationship management by meeting the requirement of customers at various category of
cloth that varies in brand (Varadarajan, 2018).
 Differentiation Focus:- This strategy focus on specialised customers with their differentiated
demand by supplying them unique product with highest quality at which they are ready to pay
high prices. Managers of Marks and Spencer use this strategy as to produce differentiated
product in accordance with their varied taste and preference.

From the above mentioned Porter’s generic strategies, managers of Marks and Spencer should
adopt cost leadership strategy as to manufacture least-cost effective product that creates possibility to
meet the requirement of customers. It further enhance market share by increasing its customer support
and loyalty for the qualitative finished goods supplied by company that provides high satisfaction for
target market.
CONCLUSION
From the above discussion it have been concluded that marketing is very essential for
business to promote and position finished goods to their customers. The producers supply qualitative
products at which their end-users are ready to pay high premium for their high level of satisfaction.
This project analyse macro-environmental factors that create opportunities and threats are explained
with the application of PESTLE analysis. The company critically assess three modes of market-entry
that are strategic alliance, joint venture, Foreign Direct Investment, merger and acquisition. It further
applies the concept of segmented and target marketing to evaluate potential consumers of business.
Additionally, this project demonstrates Porter’s generic strategies which help to gain competitive
advantage for business to compete with its rivalries.
RECOMMENDATIONS
From the above specified project report it is recommended that strategic marketing plays
major role in developing brand awareness through promoting and positioning the finished product
through building customer relationship. This describes that Marks and Spencer is expanding its
business in Bulgaria for clothing sector. The main purpose of company is to enlarge its customers by
exploring its business within another country to attract large number of buyers for maximising
revenue and profits. It further segments potential customers through segmented and target marketing
as to attract specific group of people with their specialised demands at which they are ready to pay
high amounts. The Marks and Spencer is most popular for its specialising clothing sector and Bulgaria
is highly expensive for cloth market that creates opportunity for company to sell products at least-cost
effectiveness. It leads to increase buyers through supplying qualitative goods with direct and indirect
channel of distribution at fewer prices.

REFERENCES
Books and journal
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Dolnicar, S. and Ring, A., 2014. Tourism marketing research: Past, present and future. Annals of
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Farhangmehr, M., 2015. Contribution of Strategic Marketing Planning to the Performance of Small
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Masterman, G., 2014. Strategic sports event management. Routledge.
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Sood, T. ed., 2017. Strategic marketing management and tactics in the service industry. IGI Global.
Varadarajan, R., 2018. Innovation, Innovation Strategy, and Strategic Innovation: In Innovation and
Strategy. Published online. pp.143-166.