Strategic Marketing Plan: Improving Customer Service at M&S

This report provides a strategic marketing analysis of Marks & Spencer (M&S), focusing on improving organizational competitiveness through superior customer service. It begins with an executive summary and introduction to strategic marketing, emphasizing its role in planning and implementing effective strategies. The report includes a critical analysis of PESTLE factors (political, economic, social, technological, legal, and environmental) affecting M&S's customer service, followed by an application of Porter's Five Forces model to assess the competitive landscape. It also evaluates M&S's internal competencies using VRIO analysis and outlines marketing objectives, including mission and vision statements, designed to enhance customer service. Finally, the report proposes a strategic marketing plan for the next three years, incorporating the marketing mix to achieve its goals, and concludes with a summary of key findings and recommendations.

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 & Spenser 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
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 customers 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(McDONALD,
2016).
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. As
Government can imposed the law of following social distancing that is why employees
are working from home. Because of this company can deliver their products and services
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with properly sanitised the parcel and using gloves when deliver this will attracts the
customers by seeing this attractive service.
 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.
 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
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).
 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
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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.
 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
effectively completing the work and that gives efficient results also(Rastogi and
Trivedi,2016).
 Environmental factor- M&S have become a more sustainable retailer. This relates to
environmental factors such as carbon emission from manufacturing processes and
deforestation for farming land. M&S decide to sell fair trade products to support the
workers, suppliers and the environment. Fairtrade has an impact on the environment to
better compensate foreign producers. The company has faced many financial issues over
a few years and has always overcome them by doing right by the shareholders and
stakeholders. Influence of the Green lobby and greater all-round awareness of green
issues (carbon footprint and responsible shopping, buy local / grow your own, recycling,
etc)
Porter's five forces model
It defines that framework which is used to gaining the competitive advantage within the
same industry so that firm may enjoy the larger sustainability and enhance their market share. It
determines the fives aspects that can be shown below on the context of Marks & Spencer.
 Bargaining power of customers- In retail industry bargaining power of customers are
high because of many other options are available for the people to buy the goods and
services. In this term M&Scan focus on their competitors so that they can adopts the
best strategy to t5hier customers as compare to rival firms so that they can earn higher
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revenues. For this company can offers the online facility so that people can conveniently
connect with company and retain for the longer period of time(SHTAL and et. al., 2018).
 Bargaining power of suppliers- In retail industry suppliers power are not so high
because there are many suppliers who can offers the raw material to the M&Son low cost.
This will benefit the organisation by attracting the large base of customers because they
offers the quality product to the people on low cost(Aithal, 2016).
 Threats of new entrant- Marks & Spencer is the largest retailing firm that sales the
goods and services to the customers in the global market due to this there is a major
threat present in the market for entry of the new firm because they enter into the market
with high capital and resources so that they can sustain in the marketplace for a longer
period of time.
 Threats of new substitutes- For food and clothing industry there is no sufficient
substitutes are available due to this M&Scan enjoy the high market share by providing
the superior customer services such as online payments and take away services that helps
the customers to not to wait for getting the products and payments. This attracts the large
base of people in the society in an effective way so that company can enjoy high profits
can gain the rival firm market.
 Rivalry of the firm- It represents the competitors that was present in the market to beat
the another companies revenues and profits. In case of M&S there are major rival firms
are present such as H&M, ZARA etc. that also offers the best services to their customers
due to this M&Scan examine their customer service so that they can offers to their
customers a best quality services and gaining the competitive advantage in the rival
market. In this they can solve the customers issues by answering the questions related to
when, why etc. so that people feel connected with the company and enjoys the large
amount of profits and revenues(Abbott, 2015).
Appraisal of internal competencies of chosen organisation
Internal competencies- It refers to the activities and functions of the company that they
do for achieving the set targets and earning the higher profits. In case of M&S manager can
analyse and appraise the internal competencies by using the VRIO analysis because it is very
effective and gives the approachable results to the finding so that company can make the
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strategies related to superior customer service easily. In case of concerned company VRIO
analysis can be shown below(Zhao and et. al., 2016).
VRIO Analysis is the best tool to examine the resources of company for gaining the
more competitive advantage in the marketplace. It involves four framework such as value, rare,
imitable and organised. In case of M&Sthis approach can be shown below.
RESOURCE
S/VRIO
VALUABLE RARE IMITABLE ORGANISED RESULT
HUMAN
RESOURCE
YES - - - Equally
competitive
TECHNOLO
GICAL
RESOURCE
S
YES YES - - Partially
Competitive
PRODUCT
PORTFOLI
O
YES YES YES - Temporary
competitive
advantage
FINANCIAL
RESOURCE
S
YES YES YES YES Long term
competitive
benefits
 Valuable- In case of M&S the valuable things are the human resources that helps in
accomplishing the work in an effective way. If the employees of the organisation are
working effectively by handling and tackle the customers with their 100% efforts so that
company will gain the competitive advantage and also earns a high amount of profits and
revenues that is the major aim for sustaining in the marketplace for a longer period of
time. As because of pandemic occurs in all over the world there employees work with full
safety and delivers the products to their targets customers with full precautions that will
shows the effective customers service as per current situation. It is equally important for
gaining the competition and attracting the people.
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 Rare- This term represent the rare resources of the Marks and Spenser that is hardly find
by some other organisation in this techniques and machinery used by the employees in
manufacturing the foods and clothing of the company are very effective and rare due to
this customers are attracted and fairly gain the profits and large growth. In this they can
use the digital technology in clarifying the customers problems so that they will feel
connected to the enterprise so that they will retain(Mathooko and Ogutu 2015).
 Imitable- In this M&S manager can analyse that there human and technological
resources are not easily copied by the other competitors firms so that they can gain the
profits and attracting the new customers by providing quality services to them. In this the
services given by the Marks & Spencer to their customers are related to fresh food that is
more important for a person to stay healthy, Innovative style clothing etc. that is not
easily copied by other firms.
 Organized- It is the last step in which company Marks and Spenser can effectively
mange their financial resources so that they can invest effectively and efficiently in the
project for gaining the trust of customers and beating the rival firms in the marketplace.
Evaluate marketing objectives including mission, vision for improving the competencies through
superior customer service
M&S is one of the largest multi-national British retailing company in UK that
headquartered in London, England. It was founded in 1884. The company deals in varieties of
product range such as food, clothing, financial services and home ware products. There are
around 959 stores where 80000 employees are working.
Vision- The vision of M&S is based on serving the quality products and services to the
customers that contains more value and they are working for becoming the world largest retailer
by earning and enhancing the profit margin.
Mission- The mission of company is to provide the aspirational quality to the customers
by using advanced technology that provide best services to the people(Van den Berg and
Pietersma, 2015).
SMART Objectives
Specific- In this M&Scan focus on gaining the sales by 20% and profits by 15% over the
next 3 years.
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Measurable- M&Scan measure their profits and sales by improvising their services and
gaining the competitive advantages over the next three years.
Achievable- Manager can achieves the targets by providing the superior customer service
to their peoples.
Relevant- In this M&Scan relevantly achieves their target within the period of 24 months
and following improvements can be done over the next one year.
Time Bound- To achieves this activities M&Scan bound to attain the goals over the next
three years of period.
Strategic marketing plan for improving organisation competencies through superior customer
service over next three years
Strategic marketing plan- It defines those values and aspects that helps in identifying
the goals of the business and target audience for succession the organisation. In context of Marks
& Spencer, manager can build a strategic marketing plan so that they can target the potential
customers by providing superior services to their consumers to sustaining in marketplace for
longer period of time(Wicker and et. al., 2015).
Ansoff matrix- This matrix was proposed by the H. Igor Ansoff since 1957 that involves
four aspects and helps the organisation to adopts the best strategy according to their plan and
functions so that firm may enjoy the large amount of sales and profits on time and in an effective
way. In this manager of Marks & Spencer can examine the frameworks that can be shown below.
 Product development- This strategy suggested that the company can introduce the new
product in the existing market. In case of M&S if manger can adopts this strategy than
they majorly invest on the research and development so that they can easily attracts the
customers and gain the competitive advantage in the existing market.
 Diversification- This aspects is very risky because in this company enter into the new
market with the new product for gaining the more profits and capturing large market
share. In context of Marks and Spencer, if manager can adopts this stragey they can
investigate the whole new market and the needs and wants of customers because without
it company can face the failure. It also includes more cost and time but helps in gaining
more market share and growth of the firm(Islami, Mustafa and Latkovikj, 2020).
 Market penetration- It is the another strategy that is the safest approach of the Ansoff
matrix in this manager of M&Scan provide the varieties of offers to their regular and new
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customers so that profits and image of the company will enhance and also helps in
gaining the competitive market so that people only attracts towards it.
 Market development- This shows that when the business venture may enter into the
new market with the old products for attracting the new customers in the new market that
helps in gaining the profits and revenues. In case of Marks and Spencer, manager can
focus on developing the market with their existing and current product so that they can
beat the competition in the new market and maximise the profits and revenues for longer
survival(Ramphul, 2015).
By analysing the above strategies M&S adopts the market penetration strategy because
due to this they can provide the valuable services to the customers by reducing the price of the
products and services that is also qualitative. In following this strategy company cannot include
high cost and within low cost they can gain the large market share. In this they can offers the low
cost in follow-ups, providing products and services on online media where they can answer the
customers questions effectively and in a limited time period. This market penetration helps in
attracting the customers by getting the discounts, simplifying the buyers journey at low cost. If
firm will apply this strategy it will also attracts the middle class customers this helps in
enhancing the base of loyal customers due to this high sales are received with good profit
margin. This strategy is useful in the food range of the firm because people of UK are more
foodie due to this approach is appropriate.
Porters generic model- This term explain how the organisation can achieves the
competitive advantage in the marketplace. In this it includes four approaches in context of
M&Sso that they can expand their market by providing the superior customer service to the
people. It can be shown below.
 Cost leadership- This term determines that offering goods and services to the customers
on relatively low amount to the target market so that they can attract the large base of
targeted and potential customers this helps in achieving the market share growth.
Adopting this strategy by M&Scan helps in capturing the large share in the market by
offering the varieties of services like tracking the orders for the customers so that they
can deliver to them on time. Regularly take follow ups with the customers in an effective
cost, providing quality products at low cost in a convenient way.
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 Differentiation- In this aspect manager of M&Scan differentiate their products and
services to their competitors so that they can attracts the customers and manage them for
a longer period of time. For this company need to research the market and than innovate
and invent the product for this they need large amount but at the same time helps in
gaining the competitive advantage and large market share(Gurcaylilar-Yenidogan and
Aksoy 2018).
 Cost focus- In this term manager of M&Scan focus on the niche market by offering the
low priced quality products and with lots of customer service benefits to the people.
Because of this company can attain the success and they beat the competitors in the
marketplace. In this company can focus on customers needs and wants and according to
that they can deliver the products on lower price and best quality to their customers.
 Differentiation focus- In this manager of M&Scan majorly focus on the researching the
market so that they can innovate the goods and services for the customers and attracting
the new customers also. This term helps in gaining the more market share.
By evaluating the above Porter's strategy, manager of M&Scan choose the cost leadership
strategy where they can offers the quality services and products to the customers on the lower
price as their products are high cost for attracting the more new customers and enhancing the
image of brand this strategy is very attractive as it also helps in providing the value to the
customers by offering the best services on low cost.
Marketing mix
By evaluating the proper strategy it is very essential to make a marketing mix analysation
so that adopting strategy gives the effective and profitable results to the company. In case of
M&S 7 elements of marketing mix can be follow below.
 Product- M&S is one the best retail store in country that deals in varieties of product
range such as women wear, men;s wear, food products, financial services, footwear etc.
that contains values in terms of customers services as it helps in living the convient life to
the people of society by using the company products(Išoraitė, 2016).
 Price- During the pandemic condition M&S can reduce their prices of goods and services
which they offered to their customers with more hygiene and precautions so that large
base of customers get attracted and company will enhance their sales and profits within
this tough time. In this firm will adopts the cost leadership style.
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