Strategic Marketing Plan: Improving M&S Competitiveness

This report provides a comprehensive strategic marketing analysis of Marks & Spencer (M&S), a major UK retailer. It begins with an executive summary and introduction to strategic marketing, emphasizing its importance for achieving competitive advantages through superior customer service. The study then applies various analytical frameworks, including PESTLE analysis to assess external factors, Porter's Five Forces to evaluate the competitive landscape, and VRIO analysis to evaluate internal competencies. The report also outlines marketing objectives, including mission and vision statements, and proposes a strategic marketing plan designed to improve M&S's competitiveness through enhanced customer service over the next three years. Key elements like the marketing mix are also discussed. The report concludes with a strategic plan and references.

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 & Spencer 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
As per the viewpoint of (Shane Davies, 2020)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 customer’s 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.
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(Coronavirus:
UK economy could be among worst hit of leading nations, says OECD. 2020). As
Government can imposed the law of following social distancing and Locked down in the
countries due to this employees are working from home and also customers get the
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delivery usually in more time. Because of this company can deliver their products and
services with properly sanitised the parcel and using gloves when deliver, this will
attracts the customers by seeing this attractive service. But in the containment zone
delivery are prohibited due to this profit margin would be affected and company may face
the issue of low revenues.
 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. The impact of COVID 19 is worst on the
economy of the UK and due to this it may affect the purchasing power of the M&S. In
this pandemic time UK economy can be declined by 11.5% in recent months of 2020.
But in this company can focused on their customer services so that they cannot reduce
their customers in the worldwide . In context of Marks & Spencer share was goes down
to 2.8% and their group sales also decline to 19.2% due to locked down. The sales related
to clothing and home appliances decline to 49.1%(COVID-19 effect: Marks & Spencer to
slash 7,000 jobs).
 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
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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). As because of
customer perception are changes very frequently company may face the problem of
offering the trendy products with quality to their customers because of less focused on e-
commerce. For this M&S need to be properly researched the market by using effective e-
commerce so that they can get the best results regarding the customers taste. as company
deals globally so it is very essential to emphasis on the e-commerce market so that they
can easily identify the culture and values of customers in different countries and offering
them good as per that.
 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
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. Due to Covid 19
Marks & Spencer can highly focused on their E-commerce accounts as this helps the
company to grew their retail sales. It helps the company to gain in social factor by
providing convenient services to their customers using best technology.
 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
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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) For longer sustainability M&S can focus on CSR policies under this they work for
the welfare of environment so that it indirectly benefited the society people that helps in
attracting the large base of customers due to this company can survive for a longer time
frame.
By the above explain PESTLE , it is to be evaluated that because of COVID 19 company
may face major issues but at the same time customers can identified the services of brand that
they offers to their welfare due to this organisation would survive for a longer period of time.
In this, analysing all the six factors helps in understanding the condition of marketer so that
offering the best services to the buyers can be assessable to the firm and helps in sustaining
globally. In this political factors shows the Britain's locked down that may affect the sales of
the firm on their physical stores. Due to this economy of the country but because of using
technology as E-commerce they can enhance the online sales and due to this customers also
get the effective services like getting products at home with proper sanitised bags. In this
company also follow the CSR policies to longer sustaining in the business industry.
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
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best strategy to t5hier customers as compare to rival firms so that they can earn higher
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
PRODUCT
PORTFOLI
O
YES - - - Equally
competitive
TECHNOLO
GICAL
RESOURCE
S
YES YES - - Partially
Competitive
HUMAN
RESOURCE
S
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). In case of
rare, M&S can use the rare color in making their clothing i.e. tan that is grey that cannot
be produced in mass. In case of food their quality and type of packaging is the rarest that
are different from their competitors. In this Marks & Spencer have fully capable of
beating their competitors because they are well behind the best by improving their digital
transformation plan. As it shows the faster delivery business in current environment as
compare to their competitors.
 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. As distribution process of Mark & Spencer is very costly
that is not easily imitate by the rival firm as M&S gradually focus on this over the years.
 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.
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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
It is very essential to develops the smart objectives that helps in gaining higher profits
with in the marketplace.
 In this M&S can focus on gaining the sales by 20% and profits by 15% over the next 3
years.
 M&S can measure their profits and sales by improvising their services for maximising
their customer base by 15% within the period of next three years so that they can gain
the competitive advantage within the marketplace.
 In this M&S can relevantly achieves their target within the period of 24 months and
following improvements can be done over the next one year.
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 the strategy of
developing the products range by introducing the new product line in electrical
appliances 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.
Because in this company offers the additional services of presenting the appliances demo
so that they can effectively use it.
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 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 strategy they can
investigate the whole new market in which they want to establish their presence like
Romania. And also understand the needs and wants of customers related to their new
launching i.e. electrical appliances because without it company can face the failure. It
also includes more cost and time in researching and understanding the nature culture of
that country. But at the same time it 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&S can provide the varieties of offers to their regular and
new 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 in Romania 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 development strategy because
due to this they can attrcats the large base of customers by providing the varieties of services like
discounts, offers, sale etc. in their new market for making a loyal customers. As they also focus
on enhnaxcing their production capacity so that they can provides several schemnes in offering
the goods and services to their customers. In following this strategy company include high cost
and they can gain the large market share. In this they can offers the services like 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 development helps in attracting the
customers in other country also. If firm will apply this strategy it will also attracts the brand
conscious 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 also as people are
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