Digital Marketing, Branding and Strategy Report - University Name

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Running head: DIGITAL MARKETING, BRANDING AND STRATEGY
Digital marketing, branding and strategy
Name of the student
Name of the university
Author note
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1DIGITAL MARKETING, BRANDING AND STRATEGY
Executive Summary
This report provides a detailed analysis of Marks & Spencer to develop a corporate brand
revitalisation and communication plan. The macro and micro environmental analysis has shown
that the company had been facing issues in their clothing segment for the past two decades. The
company has lost their market share significantly and are down to 7%. Therefore, two consumer
personas have been discussed to determine the target market for the company as their initial
branding strategy is vague and aims to address too large a group. The media landscapes have
been described based on the consumer personas and a communication strategy has been
proposed. The communication strategy has been based on the objectives chosen. The summary
describes the performance indicators and metrics for understanding the effectiveness of the
strategy implemented.
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2DIGITAL MARKETING, BRANDING AND STRATEGY
Table of Contents
Introduction......................................................................................................................................3
Situation Analysis............................................................................................................................4
Macro Environmental Analysis...................................................................................................4
Micro Environmental Analysis....................................................................................................5
Brand Audit.....................................................................................................................................6
Brand positioning.........................................................................................................................7
Conceptual Map...........................................................................................................................9
Customer Segmentation...................................................................................................................9
Analysis of Media Landscape........................................................................................................14
Proposed Communication Strategy...............................................................................................15
Summary........................................................................................................................................19
References......................................................................................................................................21
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3DIGITAL MARKETING, BRANDING AND STRATEGY
Organisation: Marks & Spencer
Country: UK
Introduction
This report focuses on developing a corporate brand revitalisation and communication
plan for the brand Marks & Spencer. The report is expected to propose better engagement
opportunities for the consumers where the new branding strategy would attract new consumers
and retain the existing ones in the market. Marks & Spencer is one of the major retailers in the
Great Britain having their headquarters’ in Westminster, London (marksandspencer 2020). The
company specialises in selling food products, home products and high quality clothing. The
company has almost 1000 stores in the market where the majority are only selling food products
(marksandspencer 2020). The food products offered by the company is known for their
freshness, innovation and quality. Moreover, in the clothing segment the company offers
contemporary products at great value. It is a multinational brand with its presence in more than
50 countries in the global platform (marksandspencer 2020).
Even though the company is located in every premium high street in Britain, the
company runs two entirely different business segments under the same store. The home ware and
the clothing segment which accounts for the majority of the revenue in the market have been in
the slump for the past decade (Ritson 2017). However, the food segment has shown promising
business growth when compared to the other segments in the market. The financial crisis of 2008
has affected the company significantly and they have not been able to regain their position in the
market even after continuous effort in the past years (Ritson 2017). This report focuses on the
clothing segment which has been significantly affected due to the changes in the business
structure in the past few years. The major problem for Marks & Spencer is in their brand equity
which is developed on the visions of pertinent quality and value.
The emergence of the British from the working classes to middle classes resulted in these
consumers looking for service and products at accessible price points. Marks & Spencer was able
to achieve an equilibrium between value and quality within the organisation (Ritson 2017). In the
21st century, there has been a change in the consumer’s purchasing behaviour where they have
been looking to trade for high end luxury products which was readily offered by low end mass
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4DIGITAL MARKETING, BRANDING AND STRATEGY
producers. Therefore, Marks & Spencer is in the middle which is the most unpleasant position to
be in the market. The high end consumer never purchased from Marks & Spencer in the first
place and the lower end of the consumers, prefer purchasing from heavy discounters which poses
major concerns for the organisation.
Situation Analysis
Macro Environmental Analysis
Political The political stability of a country significantly contributes to the business
of any organisation and with the development of new businesses in the
market. However, with Brexit round the corner, UK leaving EU
significantly affects the operation of the company. It is not clear where UK
will stand post Brexit especially in case of tariffs and trade regulations
(Minford 2016). Moreover, the stipulated outcomes are expected to be less
favourable to all retailers. In case of a hard Brexit, there could be a loss of
free trade policies with the European suppliers (Douch, Edwards and Milne
2017). It results in high cost of products for the end consumers in the
market. Free trade is one of the key aspects of modern globalisation which is
the reason that Marks & Spencer is able to freely operate in the global
market. It helps them in offering products at competitive prices which is
being significantly affected due to Brexit.
Economic Price has been a key factor in the retail industry and the emergence of the
budget retailers in the industry has significantly affected the business (Jafari
and Britz 2020). The economic recession and uncertainty in the market due
to BREXIT favours these budget clothing stores as majority of these
consumers have become conservative as consumers are encouraged to try to
similar products at lower prices (Douch, Edwards and Milne 2017).
Moreover, the disposable income of the consumers have also decreased in
UK which implies people are expected to purchase from budget stores more
often (Jafari and Britz 2020).
Social The society in UK is multicultural with consumers looking for trendy
products. The consumers have been looking for latest fashion products at
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5DIGITAL MARKETING, BRANDING AND STRATEGY
affordable prices (Peck 2017). However, the company has failed to upgrade
their fashion segment significantly which is the reason it is far behind
fashion brands such as Zara and H&M. Even though, majority of the
consumers in the United Kingdom have a higher ageing population, people
have become more inclined to the latest fashion trends.
Technological Technological growth in UK is high and is one of the top countries in terms
of technological superiority. Self-checkout is one of the major technological
trend which helps in saving money for the retailers by offering consumers
with checkout experience which implies faster services (Owens 2017).
Moreover, the growth of ecommerce and online shopping is rapid in the
United Kingdom where all the retailers are operating on the online platform
to provide convenience to the consumers.
Legal Brexit affects the legal environment of the retailers as there may be changes
in taxation policies and changes in regulations in maintaining relationship
with the suppliers in the market (Minford 2016).
Environmental Sustainable products is one of the major stance taken by majority of the
companies in UK as environmental rules and regulations are stringent in the
UK. Therefore, the retailers are supposed to have a certain limit on their
carbon emission from their products which implies that all companies in the
retail organisation have to maintain environment friendly operations and
products to remain competitive in the market (Owens 2017).
Table 1: Pestle
Source: (Perera 2017)
Micro Environmental Analysis
Bargaining power of the suppliers The bargaining power of the suppliers for Marks &
Spencer is relatively low as there are large number
of suppliers available in the market.
Bargaining power of the consumers The bargaining power of the consumers is relatively
high as the retail segment in the United Kingdom is
highly saturated and the switching cost for the
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6DIGITAL MARKETING, BRANDING AND STRATEGY
consumers is relatively low.
Threat of substitution The threat of substitution in the market is also high
due to the presence of large number of online
retailers and smaller retail organisations offering
similar products at lower prices.
Threat of new entrant The threat of new entrant in the market is low due to
the recent implication of Brexit and new companies
would face high entry barriers in competing with
other major retailers in the market. The amount of
capital and huge investment required in the market
makes it difficult for new companies to enter the
market.
Competitive rivalry The competitive rivalry in the market is relatively
high as the market is saturated and presence of large
number of companies makes the market competition
intense.
Table 2: Porter’s five forces
Source: (Abalkhail 2019)
Brand Audit
Strengths Weaknesses
The brand has high recognition in the
market
The brand value is high due to the
high quality of the products offered
The company offers wide variety of
products
The company has larger presence in
the market
The stores are out of fashion and non-
trendy
Lack of innovation and adoption of
new techniques
Lack of variety in the clothing
segment
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7DIGITAL MARKETING, BRANDING AND STRATEGY
Designer brands are popular
Opportunities Threats
Increasing global presence in the
market
Develop new trendy clothing brands
The organisation has the opportunity
to attract new consumer segments
Increase in competition in the retail
segment
Decrease in disposable income among
the middle segment consumers
Brand positioning
Figure 1: Brand positioning
Source: (fmckeiraobrien 2019)
Marks & Spencer have always developed strategy to reassert their quality in the clothing
segment to manage the decrease in sales but their strategies over the past few years have failed to
improve their position in the market in comparison to other companies like Zara and H&M
(Elven 2018). The company’s brand metrics have fallen in respect to all other brands in the
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8DIGITAL MARKETING, BRANDING AND STRATEGY
market but even though the organisation enjoyed strong positioning due to their value and quality
offered, it has deteriorated in the past few years (Elven 2018). Marks & Spencer can be divided
into high street fashion, a supermarket and general retailer. In the general retail segment, the
company has always scored high based on the consumer’s perception of the satisfaction, value,
quality, reputation and impression (Baker 2014). Moreover, in terms of recommending the
company to other consumers, the company has exceled in this segment. Moreover, in terms of
the clothing segment and as a high street fashion retailer, the company had various issues which
affected their sales significantly (globaldata 2018).
Marks & Spencer has lost its position as market leader in the UK fashion segment to
Primark in the year of 2018 due to the closure of some of their stores. The company has been
losing its share in the clothing segment for more than a decade (globaldata 2018). Even though, it
had been one of the favourite brands for older women, the new branding strategies were
confusing and has not been able to cater to the needs of neither the older nor the younger
consumer segment. This is one of the main reasons that clothing segment have witnessed a
continuous decline in the past years. The current market share in the clothing segment shows that
that current market share of Marks & Spencer is 7 percent which implies that there has been a
decrease by 50 percent in the past two decades (globaldata 2018). Moreover, closing stores has
one of the major strategies of protecting the company but it does not actually focus on providing
growth opportunities to the company. Therefore, there is a significant need of changing the way
the clothing segment operates along with the product designs and quality offered by the
organisation (Baker 2014).
Conceptual Map
The consumers have changed their perception towards Marks & Spencer products as the
price ranges are higher compared to the fast fashion and top brands in the market, and the
company is charging thrice the price for the same product. The company focuses on maintaining
its premium price and consumers have always identified it as a premium brand in the market.
Therefore, the consumers have a perception that they are worth paying more. However, with
BREXIT, the perception of the consumers have changed where they have become conservative
due to the increase in uncertainty. Therefore, more and more consumers are moving on from
Marks & Spencer as people are unable to find their sizes due to continuous change in the fit and
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9DIGITAL MARKETING, BRANDING AND STRATEGY
prices are quite high(Wood 2019). Quality, luxury and trust are major brand association points
for the consumers where the company wishes to make every moment special for the consumers.
It implies that the consumers associate shopping at M&S with luxury experience. The core idea
is value first which indicates the focus on the quality of the products offered to the consumers.
However, the definition of special has changed for the consumers which implies that there are
other aspects which are more important for the consumers. The latest M&S campaign invites the
consumers to spend it well which emphasises on the needs of the consumers. Therefore, it
depicts the transition from being an old traditional brand to a modern cultural state. The nature
of value has changed in the industry and value is different consumers in the modern era.
Therefore, the company has been trying to reinvent their brand but it all in vain as they
have trying to address a mass consumer segment without exactly catering to the needs of the
particular segment. Moreover, the online retail organisations have gained supremacy due to
better designs and low price ranges (Wood 2019). Therefore, it can be seen that even though the
quality of the products offered by Marks & Spencer is better, it is being perceived by consumers
as same quality as Primark due to the generic designs which lacks individuality and
differentiation capabilities (Wood 2019).
Customer Segmentation
It is not possible for Marks & Spencer to attract all consumer segments. Therefore, it is
essential to identify the right target consumers and address them clearly. Marks & Spencer needs
to understand the consumer personas they need to address to improving their declining sales in
the retail segment and improve the quality of the products offered by them (Diggins, Chen and
Chen 2016). The target segment for Marks & Spencer has always been mythical middle aged
woman that liked wearing comfortable clothing and less challenging for them. However, this
approach has proved to be ineffective which means that majority of the consumers have switched
to other products in the market. The potential consumer personas have been described below:
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10DIGITAL MARKETING, BRANDING AND STRATEGY
Persona 1
Name: Olivia
Gender: Female
Marital Status: Unmarried
Age: 25
Location: Liverpool
Occupation: Corporate Employee
Income: £ 35,000 annually
Her Values and Goals
She is an independent women living life on her own terms. She is a fashion enthusiasts and
tracks new trendy outfits. She prioritises work over everything and wants to grow in terms of a
person and the position she hold in her respective organisation. However, she is a strong
advocate for work life balance but often works longer hours during the evening. She is a fitness
freak and continues to work out every day and maintains a healthy diet. She believes that looking
good adds to her personality and she wants to look presentable at all times.
The experience she wants
She wants to purchase products conveniently without any extra hassle and as she is picky about
her clothing choices she wants variety of options available to her. She uses online shopping for
her experience and saving time but often prefers going to trendy stores to select and choose
between the products she wants. Even though she is highly active on social media websites and
gathers majority of her recommendations from electronic word of mouth, she prefers purchasing
products through series of comparison with other products. She wants continuous support from
customer care while navigating on the variety of products available in the market. She wants
quality and trendy products at affordable prices.
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11DIGITAL MARKETING, BRANDING AND STRATEGY
A day in her life
She likes waking up early in the morning and work out for two hours. She gets ready for
work and leaves by 8 o clock in the morning and spends her entire day at work till 7 in evening.
She attends local pubs and spends her evening with friends most of times. She comes back home
by 10 pm and goes to sleep within an hour.
Problem to be addressed
She does not have adequate time to physically shop in stores and prefers making online
purchases from online stores. However, she is unable to find quality products at affordable price
which are trendy in the market. She cannot afford to spend too much on expensive clothes as she
is living on her own and has to manage all her expenses.
Her common objections to Mark & Spencer products
She feels that products offered by Mark & Spencer have high price range but does offer
the variety and the design based on the latest trend. Even though, the product are high quality,
the product lack variety in design, colours and does not match her needs and personality.
Persona 2
Name: Jenny
Gender: Female
Marital Status: Married for 15years
Age: 45
Kids: She has two kids
Location: London
Occupation: Dean of a University
Income: £ 65,000 annually
Her Values and Goals
She is an independent women and manages her family on her own. Her son is high school and
her daughter has just joined college this year. She is hardworking and focuses on leading a
balanced life where her priorities are dependent on the needs of the family. She loves to teach
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12DIGITAL MARKETING, BRANDING AND STRATEGY
and research on various upcoming topics but wants to look good in front of her subordinates. She
wants to stay on top of things and prefers managing everything properly.
The experience she wants
She has aged beautifully and wants to purchase clothes that makes her look mature and
classy at the same time. However, it does not mean that she wants to look boring but wants to try
trendy and fashionable clothes. She is not technology savvy and faces problems in purchasing
products from online platform. She requires continuous support from the customer care for the
overall process. Therefore, she spends her weekends roaming high streets in London to purchase
trendy clothes suitable for work and as well as for parties. In store she wants variety of options
and support from the staffs to guide her to fashion advices to make appropriate choices.
A day in her life
She gets up early in the morning to prepare breakfast for kids and husband. She does
yoga in the morning for half an hour and then gets ready. She leaves for work at 9 am in the
morning and stays at work till 5 pm in the evening. She comes back home and rests for a while
and prepares food for her kids and husband. She spends her leisure time reading books and
browsing through social media.
Problem to be addressed
She is not technologically savvy and faces difficulty in purchasing products through
online platforms. Even though she manages to purchase products, it is not her favourite mode of
shopping. She loves to go through physical stores but she is unable to identify products that are
suitable to her group and at the same time are trendy. She is willing to pay premium price for her
products but wants variety, quality and trendy products.
Her common objections to Mark & Spencer products
The products offered by Mark & Spencer does not fit to her need as the clothes for older
women does not have variety in terms of both colours and design. These clothes are boring and
depict old fashion which does not live up to the current trends in the market. There are lack of
options in Mark & Spencer.
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Analysis of Media Landscape
In terms of the media landscape, traditional and digital marketing are two media available
for the chosen consumer personas. In case of traditional medium, billboards, flyers,
broadcasting, event and test marketing are few of the options. Billboards are advertisements
displayed on hoarding in crowded areas such as malls, airports and high end streets. It provides
greater visibility to the brand but in terms of the consumer personas, it is more applicable to
persona 2 described as older consumers are still into traditional marketing consumers as they are
still observant of fashion hoardings on crowded areas (Fardouly, Pinkus and Vartanian 2017). On
the other hand, in case of the persona 1, they are technologically savvy and gather majority of
their information through electronic word of mouth. Flyers include new product information and
discount offers, and are distributed to consumers for market penetration. It has significant reach
and can influence the consumers in making impulse purchases. Broadcasting on television and
radio is another option of traditional marketing which has significant reach for various consumer
but in case of the persona 1it is not effective as they spent significant less amount of time on
television and radios (Fardouly, Pinkus and Vartanian 2017). However, in case of the persona 2,
it may still work as these consumers are still used to watching television and they can be
influence and reached through broadcasting.
Events have high reach and influence on the consumers; launching of new product
segments as public relations provides opportunity to display products as well as highlight the
consumer segment that the company is targeting. It reaches a wide variety of consumers due to
the review from various fashion bloggers and word of mouth. Test marketing can be used to
influence both these consumer segment as it offers the consumers’ options to try out new
products and provide review based on their experiences (Fardouly, Pinkus and Vartanian 2017).
It helps in effective engagement between the consumers and the company. Both personas are
very particular about their product choices and testing products on them helps in understanding
various aspects such as comfort, suitability, likeability, design and variety. Moreover, the use of
print media is highly effective for both these consumer segment as these consumers follow
fashion magazines and reviews which has high influence and reach to these consumer segments.
In case of digital marketing, it is effective for both personas as these consumers prefer
spending time on social media websites. However, the first persona can be influenced and
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14DIGITAL MARKETING, BRANDING AND STRATEGY
addressed more effectively as these consumer personas depend on electronic word of mouth for
purchasing their products (Anderson and Jiang 2018). The persona 1 belong to the millennial
generation and are tech savvy and they have less amount of time to purchase products from
physical stores. Therefore, offering information and engagement strategies on the social media
platform is one of the most effective ways of reaching these consumer segments. The social
media is one of the major platforms where consumers search for new trends in the market. Mark
& Spencer needs to enhance their social media pages through updates by displaying new trendy
products for the younger generation especially on Instagram (Jiow, Lim and Lin 2017).
Moreover, the organisation needs social media influencers to promote the brand and the
new products. These younger consumers are following social media influencers all the time and
always purchase products based on the recommendation from fashion video bloggers along with
other bloggers. Furthermore, search engine optimisation is another significant factor for the
persona 1 as these consumer search for products on Google as soon as the need is generated.
Therefore, using SEO management and marketing helps in moving up on the relevant contents
(Anderson and Jiang 2018). However, these strategies have less impact on the consumer persona
2 as they are less active on social media compared to persona 1. However, these consumers can
be engaged by solving queries and continuous interaction with the consumers.
Proposed Communication Strategy
The communication strategy aims to engage the above personas effectively by using
effective marketing strategies. However, it is essential to identify the key objectives and purpose
of developing the communication strategy. Therefore, the objectives of the communication plan
are as follows:
To increase the footfall in physical stores by 10% within the next year
To increase the online traffic on stores by 25% within the next year
To increase the sales volume of the clothing brand by 5% within 2 years
To increase the revenue by 30% within the next 3 years
Task Name Duration Start Finish
communication plan 142 days Tue 4/7/20 Wed 10/21/20
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15DIGITAL MARKETING, BRANDING AND STRATEGY
1.0 situational analysis 26 days Tue 4/7/20 Tue 5/12/20
1.1 Analyse the micro and macro
environment 15 days Tue 4/7/20 Mon 4/27/20
1.2 Determine target consumer
segment 10 days Tue 4/28/20 Mon 5/11/20
1.3 Document the target audience
and sent for approval 1 day Tue 5/12/20 Tue 5/12/20
1.4 Milestone: Situational analysis
conducted 0 days Tue 5/12/20 Tue 5/12/20
2.0 marketing communication
objectives 4 days Wed 5/13/20 Mon 5/18/20
2.1 Identify the objectives based
on the situation analysis 2 days Wed 5/13/20 Thu 5/14/20
2.2 Evaluate feasibility and
confirm objectives 2 days Fri 5/15/20 Mon 5/18/20
2.3 Milestone 3: marketing
communication objectives developed 0 days Mon 5/18/20 Mon 5/18/20
3.0 Marketing communication
strategies 30 days Tue 5/19/20 Mon 6/29/20
3.1 Billboards 7 days Tue 5/19/20 Wed 5/27/20
3.2 flyers 7 days Tue 5/19/20 Wed 5/27/20
3.3 PR events 10 days Tue 5/19/20 Mon 6/1/20
3.4 Broadcasting 30 days Tue 5/19/20 Mon 6/29/20
3.5 Print media 7 days Tue 5/19/20 Wed 5/27/20
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16DIGITAL MARKETING, BRANDING AND STRATEGY
3.6 social media marketing 15 days Tue 5/19/20 Mon 6/8/20
3.7 Influencer marketing 5 days Tue 5/19/20 Mon 5/25/20
3.8 Search engine optimisation 30 days Tue 5/19/20 Mon 6/29/20
3.9 Milestone 3: communication
strategies developed 0 days Mon 6/29/20 Mon 6/29/20
4.0 scheduling and budgeting 11 days Tue 6/30/20 Tue 7/14/20
4.1 Identify the cost of each
marketing activity 5 days Tue 6/30/20 Mon 7/6/20
4.2 Develop budget and schedule 3 days Tue 7/7/20 Thu 7/9/20
4.3 Document and sent for
approval 2 days Fri 7/10/20 Mon 7/13/20
4.4 Make changes if necessary 1 day Tue 7/14/20 Tue 7/14/20
4.5 Milestone 4: Budget and
schedule developed 0 days Tue 7/14/20 Tue 7/14/20
5.0 Implementation, monitoring
and control 71 days Wed 7/15/20 Wed 10/21/20
5.1 Implement traditional
marketing strategies 30 days Wed 7/15/20 Tue 8/25/20
5.2 Monitor activities and evaluate
responses 15 days Wed 8/26/20 Tue 9/15/20
5.3 Make changes based on
response 5 days Wed 9/16/20 Tue 9/22/20
5.4 Implement digital marketing
strategy 5 days Wed 9/23/20 Tue 9/29/20
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17DIGITAL MARKETING, BRANDING AND STRATEGY
5.3 Monitor responses from
consumers 15 days Wed 9/30/20 Tue 10/20/20
5.4 Make changes based on
response 1 day Wed 10/21/20 Wed 10/21/20
5.5 Milestone 5: Communication
strategy implemented and monitored 0 days Wed 10/21/20 Wed 10/21/20
Customer journey map (Persona 1)
The first consumer persona is focused on purchasing products on the online platform
where the social media and online word of mouth has greater influence on the consumer.
New trend
on social
media
Search
product in
online
platforms
Finds
products
based on
specification
Compares
prices on
different
websites
Chooses
products
with higher
value
Pays through
online
banking
services
Receives
products and
reviews it
Returns or
exchanges or
gives good
review
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18DIGITAL MARKETING, BRANDING AND STRATEGY
Customer journey map (Persona 2)
In case of the second consumer persona, social media and magazines are major
influencers as they are mainly spent time reading than on social media.
Summary
Therefore, based on the customer journey, it can be seen that the consumers has to go
through various touch points before purchasing a product but the journey is different for two
different consumer segments. The consumer preferences determine the type of interaction they
want with the company. In case of the first persona, the performance measurement and
evaluation criteria would depend on factors such as time of delivery, packaging of the product,
delivering same products to the consumers which is reflected on the review given on the online
platform. Therefore, the parameters for this consumer segment suggest that the majority KPI is
time and quality of the product delivered.
On the other hand, in case of the second consumer persona, the performance
measurement depends on factors such as ambience of the store, support from the store staffs,
New trend in
fashion
magazine and
social media
Visits physical
store
Searches for
product
Evaluates the
product
quality
Select
products for
trial
Chooses final
product
Waits in
Queue
Finally
purchases it
on caash or
by card
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19DIGITAL MARKETING, BRANDING AND STRATEGY
quality and variety of products available and ease of transaction in stores. It also includes return
and replacement policies for each of the stores. Therefore, in case of the second consumer
persona, the physical factors such as ambience is a key factor along with the variety of the
clothes available.
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20DIGITAL MARKETING, BRANDING AND STRATEGY
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