E-Commerce and Marketing: Evaluating Marks & Spencer Strategies

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This report examines the e-commerce and contemporary marketing practices of Marks & Spencer. It begins with an introduction to e-commerce and its impact on marketing, followed by an evaluation of the macro-environment, including political, economic, social, technological, legal, and environmental factors. The report then utilizes the SOSTAC planning tool to develop an integrated marketing plan, including situation analysis (SWOT and Porter's Five Forces), objectives, strategy (STP), tactics (marketing mix), action, and control. The marketing mix (product, price, place, and promotion) is analyzed to assess its value generation potential. The report concludes with a summary of findings and recommendations for improving Marks & Spencer's e-commerce marketing strategies.
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E Commerce and
contemporary marketing
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Table of Content
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Evaluation of macro Environment from an e-commerce perspective and its impact on
marketing planning......................................................................................................................3
Use of marketing planning tool to develop an integrated marketing plan for company .......4
Marketing MIX and justify the selection to assess the possible value generation to
implement marketing plan ..........................................................................................................7
CONCLUSION ...............................................................................................................................9
REFERNECSS...............................................................................................................................10
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INTRODUCTION
Each and every online stores wants to increase their traffic and conversions. But even
after they put together a basis and normal strategies it can skill taught and challenging for
them to decide on which marketing tactics they should try (Chaouk, Pagliari and Moxon.,
2020). This is the reason they put together an overview of an effective marketing tactics and
e commerce Tools along with the ideas to help to implement each approaches. Electronic
commerce will substantially lower the transaction cost. It eliminates many fixed costs of
maintaining brick and mortar shops. This allows the companies to enjoy a much higher margin of
profit. It provides quick delivery of goods with very little effort on part of the customer.
This report will cover the case study of Marks & Spencer company. On the basis Of
Trade Journal Article on the M&S company this report will critically evaluate the impact of
E- commerce has on marketing planing and potential value generation.
MAIN BODY
1) Evaluation of macro Environment from an e-commerce perspective and its impact on
marketing planning.
Marks & spacers company have huge reputation in the UK market, and they stand on
top retailers list of the UK (Datta, Ailawadi and Van Heerde., 2017). This company was
established in !884 and Till the end of 2019 company has more than 1400 store location this
company has also good hold on e- commerce market, and they sell all the grocery and food item
on the Online website. There are some Macro factors on the prospective of e- commerce has
huge impact on the companies marketing planning.
PESTLE ANSLIS
Political factors
Political factor has huge impact on the companies market planning because on their E-
commerce sides Government has set some rules which should be followed by the company
and HR management of the Marks & spacers company has to follow all the governmental
rules. Government has make some rules such as proper and shifty packing of the product so
whole retail sector have to follow rules made by the government.. government has also put the
limit on the specific products so every retailer in this industry have to sell those products on the
limit price only, they cannot increase the prices of those products. For example Sugar prices are
same at everywhere so every retailer have to follow same price per KG.
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Economical factors
Inflation and deflation in any country has also impact on the E- commerce stores of the
retailer industry because prices of the product changes, and they also have to adjust their p
product prices This does not affect the single company but it affect on the whole idnustry. This
also has impact on their marketing plan because they have to make strategies when provide
prices decease and increase otherwise they can lose their customers loyalty.
Social factors
E- commerce sites are beneficial for the community because people can order their
product and food by ordering their product online and Marks & spacers company also provide
offers which add value for each customer, and they can take some benefits such as sales,
discount on products which has good impact on the marketing planning g of the company
because they can advertise their trending product on their own E- commerce sites. This is an
social responsibility of the every retailer to add some value for their customers through their e-
commerce site. For example – Charity could be help for the society
Technology
Technology plays most important role in the Marks & spacers company because
internet is used in every store of the M&S Spencer which makes easy for the customers to pay
their bill, shopping, they can compere prices of the products etc. This all are benefits for the
customers and company also can grow their business and show their presence at the
international level (Jindal and et.al., 2020). Technology has huge impact on the whole industry ,
every retailer are using the WE- commerce sites to take competitive advantages.
Legal factor
Every company can start their business on E- commerce websites, but they need some
permissions and feel some of the document for the security purpose. This also affect on the
marketing planning of the company.
Environmental factor
Marks and Spencer promote themselves as a luxury brand, and due to this they are highly
concerned about the environmental effect that the brand leaves behind (Khodyakova, Mitin and
Khukhlaeva., 2018). They have promoted the concept of sustainable retail industry on multiple
occasions and vows to be careful about their production processes. With the current climate
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crisis at hand this move from Marks and Spencer has been highly regarded and various other
retail brands in the UK have followed suit.
2) Use of marketing planning tool to develop an integrated marketing plan for company
SOSTAC Planning for
This is the tool which is helpful for the marketing planning. There are six steps in
these tools which are Situation, Objectives, Tactics, Action and control. Structure of this tool is
made on the logic that build on the Dept situation analysis which helps to inform subsequent
Decisions made about the companies strategy and their tactics Marks & Spencer company
Situation analysis ( SWOT Analysis & porter's five)
Strength
Marks & Spencer company has strong e- commerce influence which is helping them to
take competitive advantages, and they are able to achieve their objectives and their goals.
Attractive offer for the customers on their online website which encourage them to buy
their products
Weakness
customer services on their e- commerce sides needs an improvement and because of this
they are losing their customers (Massingham and Pomering., 2017).
Poor financial performance of the company
Opportunities
Marks & Spencer company should invest on the digital marketing, so they can attract
customers to buy their products.
Improvement in customer services on their E - commerce site can help them to gain
customer loyalty and their trust.
Threats
competition in the online market is also increasing which is becoming threat for the
Marks & Spencer company.
Changing trend in the clothing space is a threat.
Porter's five forces
Threat of new entrants
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New entrants in Retail brings innovation, new ways of doing things and put pressure on
Marks And Spencer Group Plc through lower pricing strategy, reducing costs, and providing
new value propositions to the customers.
Bargaining power of supplier
Bargain power of the supplier has very High force on the company because supplier look
for because there are very less row materiel powders are their in this industry.
Bargaining power of buyers
bargaining power of the buyers is very high for the company because customers have
options to go with the other retailers so company have to bargain with the customers.
Threat of substitute
Almost every products in this industry is same but innovation and development in the
product of M&S can be beneficial for them.
Revelry among the existing competition
Competition in the retailer industry is very high and M&S company is also facing high
competitive pressure from the other competitors on the basis of their product prices.
Objectives
To enhance sales of the company by 20 % till the end of 2021.
To Increase profitability of the company by 15 % till the end of 2021.
To expand business in a developing country Till the end of 2021
Strategy ( STP )
Segmentation
M&S has segmented the market demographically so that the customers of different age
groups ,social class, ethnic groups and different gender can buy the company’s products. In order
to do this company has MADE ITS BRANDS ,STORES, FOOD AND CLOTHIMG BY
KEEPING IN MIND different market segments
Targeting
M&S will bring their food producer on their e- commerce site which is ready food
products and this will be beneficial for the employees who have busy life, and they are not able
to make their food themselves (Nguyen., 2019). They can ready their meal in 2 minute because
in a ready meals customers just have to put boil water and their meal will be ready. It will
help M&S to grow their business, and they can create traffic on their E- commerce side.
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Positioning
Marks and Spencer has positioned itself as a premium brand in the supermarket industry.
As customers are willing to pay a premium price for the M&S brand, so they have set their prices
higher because of this premium brand perception in the minds of customers.
Tactics ( Marketing Mix)
Product
Marks and Spencer will also bring new product on their online shopping their and
also provide offers and discount to their customers, so they can satisfy their needs and their
demand (Chaouk, Pagliari and Moxon., 2020). Ready meal product is one of them and m
people will get delivery of their product in just 30 minute.
Place
Marks and Spencer will expand their market more in a India because they are getting
good response from this market and people are happy with their product and online shopping
will be available by the Marks and Spencer for their customers.
Price
Company is using competitive market strategies to gain competitive advantages and
providing their product to the customers in lower prices range. Customers can easily buy
product in discount from the e- commerce side of the Marks and Spencer company.
Promotion
Company will advertise their product on the social media platform because it is the best
way to promote their products and this less expensive as compare to the TV advertisement and
other marketing tool (Datta, Ailawadi and Van Heerde., 2017). Marks and Spencer target the
people according to their product use and increase traffic on their online website.
Action ( Change management)
Company will bring change at their workplace and bring new Equipment which can be
run through internet for example – Automatic billing machines and tools for the customers
which can allow them to make their shopping experience more better. Change management is
important for the Marks & Spencer company because this will help them to increase their
productivity, and they can high competitive advantages in the market where they are operating
their business. To increase the flow of communication at the workplace company can also
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make their companies structure simple so employees can communicate their problems with
their superiors and ell them about the problems they are facing at the companies' workplace.
Control (Monitoring and controlling )
Feedback
Company will use feedback techniques to know how their marketing plan is performing.
They will take review from the employees who are working in the M&S to measure the
performance of the campaign. This will help the Marks and Spencer company to record and
control the companies process. Feedback will provide them better suggestion and review about
their strategies, and they can measure that their strategies are working according to the plan
or not. If it not then they can change their strategies can achieve their business goals.
3) Marketing MIX and justify the selection to assess the possible value generation to
implement marketing plan
Marketing Mix
Product
Marks and Spencer will also bring new product on their online shopping their and
also provide offers and discount to their customers, so they can satisfy their needs and their
demand. Ready meal product is one of them and m people will get delivery of their product in
just 30 minute.
Price
Company will use competitive market strategies to gain competitive advantages and
providing their product to the customers in lower prices range. Customers can easily buy
product in discount from the e- commerce side of the Marks and Spencer company. Customers
can save money on online shopping website (Saari., 2017). Customers will get some points for
their shopping and that point can be used in their next shopping from their sides and save
money.
Place
Marks and Spencer has stores in all over the globe and they are also thing to expand
their business more in a India because they are getting good response from this market and
people are happy with their product and online shopping will be available by the Marks and
Spencer for their customers. Company is selling varieties of clothing product which include
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man's war, woman, children and adults. Customers also get the options to choose their size and
colour of the clothes which helps to satisfy their customers.
Promotion
Company will advertise their product on the social media platform because it is the best
way to promote their products and this less expensive as compare to the TV advertisement and
other marketing tool (Weichbrod, Thompson and Norton., 2018). Marks and Spencer target the
people according to their product use and increase traffic on their online website. Marketing g
plan of the company will also include So marketing which will increase traffic on their
websites, and they can make new customers who can buy their product from their website.
Process
To make process of their company smooth M&S will bring new equipment at their
workplace to increase their productivity and grow their business more globally and show their
presence on the international level.
People
M&S will provide training to their employees, so they can increase their skills and
working efficacy which will help M&S to take competitive advantages in the market. They
will also focus on the group activities for the employees to create working environment for the
employees and each employee can work as a team in a organization. This will also increase the
efficiency of the work.
Physical Evidence
Marks & Spencer have more than 1450 stores in all over the world which shows their
Physical presence, and they are looking for expansion in the Indian country, so we can say that
Marks & Spencer has presence in retail industry.
CONCLUSION
AS per the report has been cover the case study of Marks & Spencer company on the
basis Of Trade Journal Article on the M&S company this report has been critically evaluated
the impact of E- commerce has on marketing planing and potential value generation. It has
been use SOSTAC plan to developed marketing plan for the Marks & Spencer company. In the
end of this report has been concluded marketing mix of the Marks & Spencer company.
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REFERNECSS
Books and journal
Chaouk, M., Pagliari, R. and Moxon, R., 2020. The impact of national macro-environment
exogenous variables on airport efficiency. Journal of Air Transport Management.82.
p.101740.
Datta, H., Ailawadi, K. L. and Van Heerde, H. J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing.81(3). pp.1-20.
Jindal, P. and et.al., 2020. Marketing-Mix Response Across Retail Formats: The Role of
Shopping Trip Types. Journal of Marketing.84(2). pp.114-132.
Khodyakova, N. V., Mitin, A. I. and Khukhlaeva, O. V., 2018. Projecting Personality
Developing Pedagogical Systems in View of Students’ Educational Needs and Factors of
Social and Cultural Macro-Environment. Psychology and Law.8(3). pp.240-253.
Massingham, P. R. and Pomering, A. A., 2017. Introducing Knowledge Management to the
Marketing Mix.
Nguyen, H., 2019. Facebook marketing plan for a Digital Sales Company-Case Havain.
Nguyen, V. Q. A., 2019. Digital Marketing Plan for an International Event. Case: Guinness
Sauna event.
Saari, M., 2017. Social Media Marketing Plan for Lakeside Cafe.
Weichbrod, R. H., Thompson, G. A. H. and Norton, J. N., 2018. Environmental Factors:
Macroenvironment versus Microenvironment--Management of Animal Care and Use
Programs in Research, Education, and Testing.
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