Market Segmentation & Positioning Report on UK

This report discusses market segmentation and positioning in the UK retail industry, with a focus on Mark and Spencer. It covers segmentation models such as demographic, psychographic, geographic, and behavior segmentation, as well as competitive advantage and positioning strategies. The report recommends that M&S follow the Ansoff model to promote the business and conduct transparent research to understand their current position in the market.

Market Segmentation
& Positioning Report
on UK

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Literature review....................................................................................................................1
Market segment......................................................................................................................2
Market segments: Identification, Characterization and Quantification..................................2
Literature review: Competitive advantage.............................................................................4
Positioning and its tools for different companies...................................................................5
Recommendation-...................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Market segmentation and positioning is the part of the organisation that states the where and
how the product and services are offering in the segmented market, that determines the position
of the organisation in the market . It is the analytical study of the marketing principle that is
done by the basis of research and analysis study (Sultan, Wong, and Sigala, 2018). This assist
in rising the companies brand value in the targeted market. It is the framework which is
conducted in the every type of business. It is conducted on the basis of age, group, income and
many more. The technique aid in understanding the position in the market place. In this report
considering mark and Spencer the company is based on UK deals in retail market provides the
brand is well recognised in the market or in the worldwide. The brand was founded by Thomas
Spencer and Michael Mark in 1942 in UK London. This report will cover the segmentation
meaning, characteristics and in part two it will explain the positioning in relation to the Mark
and Spencer and its competitive advantage. This report will cover the retail industry and chosen
country is UK. The example in this industry is Marks & Spencer
MAIN BODY
Literature review
According to the “Jan Austen” This process is used to separate the market on the basis of
varied qualities. It includes the sex, age, group, demographic, income and many more that assist
the company to divide the product and service as per their qualities in the market of UK. Like the
top brand company in UK produce the branded goods for the consumers they provide them to
the premium customers that have the power of buying the goods in the high rate. These majorly
consider the condition and buying power of the consumers. Most of the organisation provides
the goods to the niche market so that they can be in the sight of the every segment consumers.
These companies target a mass market. It is a part of large market of UK which is based on one
or more similar characteristics. Marketing professions approaches each segments variedly
(Suatmadi, Creutzig, and Otto, 2019), but only after they fully understand the requirements,
lifestyles, and personality of the target market or consumers. It incudes a homogeneity,
uniqueness, common needs and much more on the basis of the needs and wants. It woks by the
consideration of the lifestyle, likes dislikes in different markets. The marketing department has to
understand the demand and other needs in order to satisfy them so that they can be a loyal
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customers of the brand or company. It consist a various classified parts that helps the concern
in understanding the consumers on the basis of divided segments. The company Mark and
Spencer divides the consumers on the basis of age, sex, income and many others. While
segmented the customers the organisation must be homogeneity among the basic needs of the
segments, they requires to be a distinction that makes the segments unique from others. M&S
already segments its customers in different ways. The classified parts are describe below in the
relation of the considered company.
Market segment
There are main four customers segmentations models that should belongs to the
marketing practices these basically divides the consumer according to their considered
segments. The common illustration of these segments are gender, age, lifestyle etc (Wang, and
et., al., 2018).
Market segments: Identification, Characterization and Quantification
 Demographic segmentation - It is the first thing that every business men think of
when they plan to segment market. This is the more directive method of explaining
buyers but it stays powerful. This segment of marketing includes the age, gender,
ethnicity, economic condition, literacy level of buyers, religion, profession or
designation in the concern. It targets the potential customers based on the income. Its not
just to reach the customers more effectively but its also about those buyers who is
visualising the message of the company that is not useful for them. This assist in
influencing them to buy the products of the company (Palmatier, . and Sridhar,2020).
These four are the major segments that are followed by the company. In the context of
the Mark and Spencer the company adapts a Demographic segmentation they divide the
consumer on the basis of age and groups - social and ethical units. They value many
offers in M&S clothing and offering products. They provide the quality products in the
market. They understand the consumer behaviour so that they can meet the requirements
of their consumer and that they can change the status of the expected consumers in loyal
consumers.
 Psychographic Segmentation - This segment of the market concentrates on the
purchaser and their interest it include the personality traits, hobbies,life goals , values,
beliefs, and lifestyle of the consumers. In the comparison of the demographic
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segmentation, this can be tougher set to determine (Nam, Joshi, and Kannan, 2017). A
proper research is essential and when is is completed well. This segment permits for
improbably effective marketing that user will feel and can interact at personal stage.
Top brands like Apple follows this type of segmentation to build a brand personality
that fits into the perception of their consumers.
 Geographic Segmentation - This kind of segmentation is often of the easiest to
determine, gathering consumers with the regards to their physical places or outlets. It
can be judge on the basis of country, region, city, postal code etc. it is possible to
grouping the users within the set of radius of a particular location. It is good option
for the marketers of performing the live events in order to reach the local buyers. By
knowing the current location of the buyers permits company to when they have to
promote their goods for segmenting the consumer on the basis of location or region it
must requires a consumers location or outlets when they are available or what is the
peak time when most of the users or consumers are in the market (Lim, 2018).
International brand like McDonald's uses this kind of segmentation in order to provides
the services in world wide they wish to have the good image in the global areas.
 Behaviour segmentation - This is the last segment of the marketing principle that
determines the consumers choice, likes, dislikes and many more. It needs a less data to
be right and real to be truly effected. But most of this can be gather through the
websites or social sites. It includes a different perimeters that are methods of buying
goods, loyalty of brand, way of spending money, previous product feedback, use of
brand and browsing habits. These all are collected from the consumers utilising method
this approaches the using behaviour of the purchasers. The behaviour patter considers
time spend on the website of the brand, number of the sessions and many more that are
the sources that assist in understanding the behaviour of the consumers. Thus, Netflix
uses a behaviour segmentation to delivers customised content to its consumers in
order to provide a relevant source of entertainment to the viewers (Kotler, 2017).
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Figure 1 Statistica, 2021
Figure 2Annual sales in retail sector from 2005-2020
From this graph, it can be interpreted that the sales in the retail sector has taken a rise
from past years due to changing trends and companies are adopting these trends effectively
which reflects the increase of shopping of customers.
Literature review: Competitive advantage
In order to have the competitive advantage in the market, the company is required to
differentiate itself with that of the other competitors. The company must have the ability to create
the good position so that rivals can be battled. As there has been shift of the shopping of people
from offline to online mode, the companies are required to have the good ecommerce system so
that the customers can get convenient services. The website of M&S is customer friendly which
gives competitive advantage to the firm. Technology plays an essential role in the business as it
takes the business forward.
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Positioning and its tools for different companies.
After segmentation and targeting the term comes that is the positioning it states the plac where
business determines the place of their concern in existing market. This recognise the size of the
industry and the place in the sight of the users. According to “Geoffrey Chaucer” It is
determined on the basis of status, size and others. It has the power of influencing the
consumers mind set in order to make the brand more competitive. The main objective of this
model is to give the recognisance or identity to a brand or product so that user understand it
in a certain method (Karimi, and et., al.,, 2018).
Every organisation has placed them in a different positions . There are several types of
positioning strategies that are product attributes and advantage, product price, product quality,
offer utilisation and application and competitors. These above points helps in positioning of the
brand on the basis of listed points. It consist of various points that are term as tools of
positioning the company name and image. It is followed by every company. The tools are
described below.
 Value proposition- it is the major tool for positioning the brand, it is the promise
business give to the consumers when they purchase the products. It is the what the user
perceives as essential and important as it will resolve the issues of the theirs. It is
necessary to marketers to understand what the buyers value is and what value the
company can delivers. The brand like amazon adapts this to conduct a business so that
they can have their own loyal consumer base in the market place. The amazon has the
greatest value proposition they understand the consumers value (Ding, and Wen, 2018).
 Six step process model - This model help in understanding the consumers value so
that the organisation can satisfy the needs and wants of the users. It also assist in what to
target and what type of customer to be targeted. Company such as Tesco it follows the
process to understand the company customers and their needs in order to satisfy them.
These are the goals of the institution to have a well reputed brand image in the market.
 Aims and objective - Every strategy has the clear aim and goals so that business have
some kind of idea that our strategic positioning is working. The first thing to do when
start any business planning to set the goals and aims. Aims basically be a quantitative
number such as sales for every goods. By having an aims business can measure
whether the scheme is working or not (Deepak, and Jeyakumar, 2019). On the other
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hand goals and objectives must concentrate towards the goods and services, as it
designs that how to reach those sales scale. In total business goals should be set in all
the sections of the concern so that effective analyses can be done. Top brands like
Unilever the business uses this strategy before introducing the product or making the
business they constant follow this strategy in order to have a successful environment in
company.
 Ansof model - it is a framework which is used to start a best method for taking the
goods in existing market or new segment. It includes the methods that assist in analysing
the positing and exact condition of the market (Chaikuad, and et., al., 2018). That are
explained below.
1. Market Development – This consider the situation where the existing good is improved
and sold it in existing market with new offer and modification.
2. Market penetration - This explains the method of introducing the product in new
marketplace. This consist a risk with it. It requires a huge investment.
3. Product development - This defines the situation when the product is launched in
existing market. This is not so risky factor. It is done on the basis of the customer
requirements and needs.
4. Diversification - this method shows the new product in new market this is most risky
factor that business has invest high amount of capital. It includes a various kinds of study
while launching the product.
The brand mark and Spencer followed a Ansoff model in the company to introduce the product
in the market with having a proper analysis. So that they can have a success in the market and
can increase the brand value by understanding the demands of the consumers (Adnan, Ahmad,
and Khan, 2017).
Recommendation-
It is recommended from the above study that M&S should follow the Ansoff model to promote
the business. They should advice their marketing department to research in a good and
transparent way so that they can have the clear image of the current position in the market. And
they can have the idea of conducting business and their future goals of expansion.
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CONCLUSION
From the above report it is concluded that market segmentation and position plays a vital role in
the business that justifies the exact place in the market. The company chosen is M&S and
market is UK and which deals in the retail sector. It includes the various factors are described
above and the companies faces a issues too while following these steps like lack of resource or
political issues and any other problems these are the hurdles that stops the company to grow
easily. Overall while introducing the product the company has to go through many problems.
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REFERENCES
Books and Journals
Adnan, A., Ahmad, A. and Khan, M.N., 2017. Examining the role of consumer lifestyles on
ecological behavior among young Indian consumers. Young Consumers.
Chaikuad, A., and et., al., 2018. The cysteinome of protein kinases as a target in drug
development. Angewandte Chemie International Edition, 57(16), pp.4372-4385.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Ding, B. and Wen, G., 2018. Target reconstruction based on 3-D scattering center model for
robust SAR ATR. IEEE Transactions on Geoscience and Remote Sensing, 56(7),
pp.3772-3785.
Karimi, D., and et., al.,, 2018. Prostate segmentation in MRI using a convolutional neural
network architecture and training strategy based on statistical shape models.
International journal of computer assisted radiology and surgery, 13(8), pp.1211-1219.
Kotler, P., 2017. Philip Kotler: some of my adventures in marketing. Journal of Historical
Research in Marketing.
Lim, W.M., 2018. Demystifying neuromarketing. Journal of business research, 91, pp.205-220.
Nam, H., Joshi, Y.V. and Kannan, P.K., 2017. Harvesting brand information from social tags.
Journal of Marketing, 81(4), pp.88-108.
Palmatier, R.W. and Sridhar, S., 2020. Marketing strategy: Based on first principles and data
analytics. Bloomsbury Publishing.
Suatmadi, A.Y., Creutzig, F. and Otto, I.M., 2019. On-demand motorcycle taxis improve
mobility, not sustainability. Case Studies on Transport Policy, 7(2), pp.218-229.
Sultan, P., Wong, H.Y. and Sigala, M., 2018. Segmenting the Australian organic food consumer
market. Asia Pacific Journal of Marketing and Logistics.
Wang, W., and et., al., 2018. Semi-supervised video object segmentation with super-trajectories.
IEEE transactions on pattern analysis and machine intelligence, 41(4), pp.985-998.
(Adnan, Ahmad, and Khan, 2017)(Chaikuad, and et., al., 2018)(Deepak, and Jeyakumar,
2019)(Ding, and Wen, 2018)(Karimi, and et., al.,, 2018)(Kotler, 2017)(Lim, 2018)
(Nam, Joshi, and Kannan, 2017)(Palmatier, . and Sridhar,2020)(.Suatmadi, Creutzig,
and Otto, 2019)(Sultan, Wong, and Sigala, 2018)(Wang, and et., al., 2018)
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