Global Marketing Management: Marks & Spencer and Hilton Food Group

This report delves into global marketing management, presenting analyses of Marks & Spencer and Hilton Food Group. Task 1 focuses on Marks & Spencer, examining its external and internal environments through SLEPT and SWOT analyses. It explores the impact of globalization on marketing, competitive advantages, Porter's generic strategies, and the importance of product innovation, including methods for protecting innovations. The report also applies Porter's Five Forces framework to assess the competitive landscape. Task 2 shifts to Hilton Food Group, investigating factors facilitating its internationalization, global market potential, associated risks and mitigation strategies, global segmentation approaches, and the strategic use of the marketing mix and communication strategies. The report aims to increase understanding of global marketing challenges and strategies by examining the two companies.

Running head: GLOBAL MARKETING MANAGEMENT
Global Marketing Management
February 23
2019

GLOBAL MARKETING MANAGEMENT 1
Table of Contents
Overview....................................................................................................................................2
Task 1.........................................................................................................................................2
Globalization..........................................................................................................................2
Reasons Organizations go Global..........................................................................................2
Overview of Marks & Spencer..............................................................................................3
External and Internal Environment Analysis.........................................................................3
SLEPT Analysis.................................................................................................................3
SWOT Analysis.................................................................................................................4
Impact of Going Global on Marketing...................................................................................5
Competitive Advantage of Marks & Spencer........................................................................6
Porter’s Generic Strategies.................................................................................................6
Importance of Product Innovation.........................................................................................7
Protecting Innovation.............................................................................................................8
Porter 5 Force Framework.....................................................................................................8
Task 2.........................................................................................................................................9
Hilton Food Group.................................................................................................................9
Factors that Facilitate Internationalisation of Hilton Food Group.........................................9
Global Market Potential.......................................................................................................10
Risk and Issues of Internationalisation................................................................................10
Mitigating risk in Internationalisation..................................................................................11
Global Segmentation............................................................................................................12
Marketing Mix.....................................................................................................................13
Communication Strategies...................................................................................................14
References................................................................................................................................15

GLOBAL MARKETING MANAGEMENT 2
Overview
The intent of this paper is to increase the understanding regarding issues experienced by the
organizations in the world, with the identification and use of global marketing strategies,
comprising issues related to internationalization. The paper is comprised of two tasks- Task 1
is a case study that is based on Marks & Spencer and Task 2 is an essay based on Hilton Food
Group.
Task 1
Globalization
Globalization is the procedure of collaboration and incorporation among the governments,
businesses, and people of different countries. It is also considered as the procedure driven by
international investment and trade and assisted by information technology. This procedure
influences the environment, political systems, prosperity, culture, physical well-being, and
economic development across the world (McCann, 2018).
Reasons Organizations go Global
New Revenue Potential
The successful expansion of the business operations at the global market support company in
generating more revenue because it allows business to fulfil the demands of new customer
base at international level (Jones, 2010).
Learning New Culture
Visiting new places and getting familiar with its culture supports business in understanding
the behavior of the customer in a better way. Understanding people of different nation allow

GLOBAL MARKETING MANAGEMENT 3
the company to think from a new perspective and will allow in properly meeting the demands
of the customers (Jones, 2010).
Background of Marks & Spencer
Marks & Spencer is a international retailer with headquarter in London that is involved in
selling home products and clothing. The company was founded in 1884 by Thomas Spencer
and Michel Marks. It provide high quality homeware, food, and fashion. Today, the company
is considered as the leading fashion retailer across the world (Marks & Spencer, 2019a).
External and Internal Environment Analysis
SLEPT Analysis
Socio-Cultural Factors
The forces that affect the operations of the businesses in the industry are altering values and
generation shift (baby boomer age group is retiring, which is shifting the focus of companies
on Millennial and Generation X). Different generation carries visible changes in their
behaviour, from their habits of shopping to the use of technology for the purchase of products
(S&P, 2018).
Legal Factors
There are different legal factors that influence the operations of the retailers in the market are
environmental, safety and health regulations, antitrust, consumer rights, etc. Marks &
Spencer has taken one initiative that is ‘Behind the Barcode’, which offers patrons an
experience of omnichannel by allowing them to place the order through an online website or
in-store collection by product scanning.
Economic Factors

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In 2008, during financial crisis, while opponents like Tesco, Asos, or Aldi followed the
discounted strategy of pricing, M&S concentrated on increasing customer satisfaction
through higher product quality (Vaugham, 2012). Whereas, this approach headed to a decline
in the sales for the short-term, but experienced increased customer satisfaction for the long-
term because of the desires and preference of the British customer to look at quality and
value.
Political Factors
As per experts, M&S has been affected by the free trade agreement of the European
Commission that has stemmed in easy imports of the goods and reducing sourcing cost
(Vaugham, 2012). Due to the higher structure of cost, business has experienced a decreasing
market share situation while entering in the new markets.
Technological Factors
Marks & Spencer is at strong strategic position that supports it in availing the benefits of the
altering media landscape, the transmission of social networks and a growing mobile trend.
Considering its fashion division, the speed at which the newest drifts are being transferred to
creators has augmented, as has the speed of transportation.
SWOT Analysis
Strength
A clear image of the brand – M&S has high-end value brand image, which targets the
premium customer segment in the market. In accordance with its image in the market, it
offers modern, sophisticated, and stylish products (Bhasin, 2018).
Innovations – With the operations of 150 years, M&S has been in the race of intense
competition due to its spirit of innovation. Innovation in the company is also identical to

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communication, people, and creativity across levels is stimulated to think more about new
ideas and suggest whenever possible.
Weaknesses
Customer Satisfaction – The consumers of the company mostly show low satisfaction due to
their return policies along with in-store experience. This has led to low loyalty towards the
brand and increasing level of brand switching (Fern Fort University, 2018a).
Opportunities
New Segments – Fashion is said to be a developing segment that comes up on regular basis.
There is an increasing demand for traditional as well as ethnic wear in the Asia market, which
is presently not being satisfied by Marks & Spencer (Bhasin, 2018). This is being considered
as one area that can offer numerous advantages to the company’s retailer.
Threats
Competition – With the developing fashion trends, the level of competition in the industry
has increased. The key competitors of M&S are Tommy Hilfiger, UCB, Zara, and Gap.
Impact of Going Global on Marketing
Competition
With the expansion of audience and market because of globalization, the level of competition
also increased. This increasing competition also increases the pressure on the brand to stand
out from the crowd. Customers are aware of numerous options available in the market and the
means for searching the best possible product are being more targeted – which makes it
simple for the customers to sort through brands that are less relevant (Lundby and Jolton,
2010).

GLOBAL MARKETING MANAGEMENT 6
Technology
Technology supports in rapid information exchange around the globe. The growth of
enhanced and new techniques of product marketing also results in increasing company cost in
order to implement updated software into the operations (Lundby and Jolton, 2010).
Competitive Advantage of Marks & Spencer
Porter’s Generic Strategies
Porter's generic strategies explain the way businesses attain competitive advantage around
their selected market scope. Three generic strategies are differentiation, focus, and cost
leadership (Kossowski, 2007).
Cost Leadership
Under cost leadership strategy, a business tries to manufacture low cost products in the
respective industry. The sources of cost advantage are diverse and based on the industry
structure. If a company attains and sustain the cost leadership, it will be considered as the
above average performer in its industry. Marks & Spencer is known in the market for its high
quality products that are targeted at premium class customers. Due to this, the company does
not comply with a cost leadership strategy.
Differentiation
Under differentiation strategy, a company focus on being unique within the industry along
with few dimensions that can be broadly appreciated by the customers. The company chose
one or more features that numerous customers in the industry seek to be important and
exclusively places it to meet those desires. In order to be diversified, Marks & Spencer has
adopted the diversified strategy by successfully attaining the paperless management. The
paperless operations and company’s administration are managed in the IT systems that are

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processed through secure servers; thus, offer flexibility in operating the business. The motive
of M&S of having paperless management is to ensure that Martha chain can continue to
operate across the world in an organized manner (M&S, 2018). Besides this, the company is
trying to reduce the use of plastic products in its packaging by replacing them from planet
friendly substitutes that could be easily recycled (M&S, 2019).
Focus
The focus is considered as the marketing strategy that works under the agenda of giving
priority to the resources for expanding the operations in a segment or a narrow market. M&S
is a well-known brand in the global market because of its standardized management style in
managing the supply chain in order to reach the win-win situation. Standardization is
considered as the company's consistent style, type, the design of the store, and product quality
and the employees involved in the service program possess a meticulous standard. The
greatest benefit of having Standardization Management is that it can save the cost of
management, while customers can improve their entire impression of M&S (Marks &
Spencer, 2019b).
Importance of Product Innovation
The success of M&S is majorly based on its list of innovations in the industry. Innovations
are the foundations through which business is building and has been set apart from the
competitors. Providing something different and appealing to stand out from the crowd has
offered a continuing success to the company.
Eye Catching Motifs were the designs inspired by Margaret Nash’s embroidery, which were
focused towards designing shirts, swimwear, children wear, and men wear (M&S Careers,
2015).

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Protecting Innovation
Patent – It is a right provided by the respective government to prevent parties from
producing, vending, or using the invention.
Copyright – It prevents imitating of any work, product, or computer program.
Porter 5 Force Framework
Substitute Product Threat
Marks & Spencer operates its business in the market where high priority is provided to
innovation to uphold the brand reliability and meeting the altering consumer demand. In the
clothing segment, Marks and Spencer are experiencing the high threat of substitute due to
high chances of style and design copying. In the food segment, the existing 4 big
supermarkets (Tesco, Sainsbury, Asda, and Morrison) has covered the British market,
whereas Tesco and Sainsbury are working high quality products (Fern Fort University, 2018).
The threat of New Entrants
The retailing industry possesses low new entrant threat because high investment is a
requirement by the business to take entry in the market with strong brands that have attained
customer loyalty.
Power of Customers
Marks & Spencer is operating in the retailing industry that has high bargaining power the
customers. Regular shifts in the customer market like demand for classical designs,
preference to the fashionable item, increasing price sensitivity or declining trust of the
customers from British products are influencing the retailers (Fern Fort University, 2018).
Power of Suppliers

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After the rapid decline in the sales of Marks & Spencer in the year 1990, the company was
enforced to outsource products and work with foreign suppliers who provide products at
competitive prices. This movement leads to reducing the British supplier's bargaining power.
Competition among existing businesses
For M&s, the competition in both the industries that is retailing and the food is increasing due
to the presence of strong competitors. In the fashion industry, the key competitors are
Sainsbury and Tesco. Besides this, in the food industry, the main rivals are Zara and Gap
(Fern Fort University, 2018).
Task 2
Hilton Food Group
Hilton Food Group is a business of food packaging, registered on the Stock Exchange of
London and a component of the FTSE 250 Index. It was introduced in the market to run a
lamb and beef packing facility in 1994. The company operates as a subsidiary, involved in
the meat packing business. It provides a broad variety of fresh items like steaks, minces,
roasting joints, and chops. It even offers value-added goods including marinated meats, ready
to cook goods, serving sauces, barbecue ranges, and meat cuts (Bloomberg, 2017).
Factors that Facilitate Internationalisation of Hilton Food Group
Internationalisation is all about expanding the operations of the business from the home
country to a foreign country. The decision regarding internationalising the business is said to
be the strategic decisions that have a major influence on any company and all its external and
internal operations. Numerous factors are available that can facilitate internationalisation of
Hilton Food Group. The common factor is the need to move to a potential abroad market and

GLOBAL MARKETING MANAGEMENT 10
to diversify risk. Besides this, the company can go international to introduce its new product
in the portfolio and meet the demand of the potential international customers (Ebner, 2011).
Hilton Food Group can also consider its expansion in the international market to attain a
different rate of growth. Diverse markets possess diverse rate of growth and many businesses
in countries with slow growth rate always go for internationalisation with the motive of going
to nations with a high or faster rate of growth.
Global Market Potential
Demand of packaged meat is expected to reflect the growth in single digit in the predicted
time. This progress is accredited to augmented manufacturing of meat in the international
market. Packaging is something that can be utilized to contain, protect, deliver, and handle
processed goods and raw material. The key drive of packaging is to offer goods to the
customer in perfect condition i.e. in complete form of food deprived of spoilage (Future
Market Insights, 2019).
The market for meat packaging is thrived internationally because of numerous factors like
urbanization, particularly in emerging economies such as China, India, Brazil, and Russia.
However, few of the forces that are confining the development of the meat packaging market
comprises environment matters like sustainability and recyclability along with hygienic
packaging and increasing issues related to health. The key drifts of international market of
meat packaging are the demand for small size packaging, development of new material for
packaging and growing awareness regarding environmental issues (Future Market Insights,
2019). Nano packaging is playing a key role in the market of meat packaging, because it
requires an aseptic packaging that goes on for a maximum number of days for prolonged
shelf life.

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Risk and Issues of Internationalisation
Country Risk
Poor infrastructure like bridges, telecommunication network, and roads can result in an
expensive deal for the business to operate its activities in a different nation. Economic
situations like the increasing rate of unemployment or a high level of unskilled labor could be
the entry barriers (Yilmaz and Flouris, 2017).
Political Risk
An unstable government structure will be incapable to guard the business interests. The
absence of effective policies of foreign trade reflects that the business needs to route through
the shades of associating with government bureaucrats who may fall from power (McKellar,
2012).
Currency Risk
Variations in the foreign currency can diminish profits at the time of converting it to the
domestic currency. It is important for every business to analyse the rewards as well as the risk
of investment in a different country.
Mitigating risk in Internationalisation
Identification of objectives and risks:
In order to overcome or avoid the present risk in the international market, it is very important
for the business organization to first analyse its goals and type of risk available in the market
such as political instability or poor infrastructure.
Detailed evaluation of the product: