International Marketing Strategies for Marks and Spencer: A Report

This report analyzes the international marketing strategies of Marks and Spencer (M&S). It begins by defining key concepts and the scope of international marketing within the context of M&S, focusing on exports, imports, contractual agreements, joint ventures, and contract production. The report explores the rationale for international marketing, including the importance of understanding customer needs and demands, and then details various market entry routes such as licensing, franchising, partnerships, acquisitions, joint ventures, turnkey projects, and greenfield investments. Key elements of the marketing mix (product, price, place) in a global context, specifically Dubai, are also discussed. The report highlights the importance of market evaluation processes, including country identification and market segmentation. It examines different international marketing approaches, including polycentric, ethnocentric, regiocentric, and geocentric strategies, providing a comprehensive overview of how M&S can effectively expand its business internationally.

International marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 ................................................................................................................................................1
P1 Scope and key concepts of international marketing in Marks and Spencer .........................1
P2 Rationale to market internationally and the various routes to market. .................................3
LO 2 ................................................................................................................................................5
P3 Key elements and selection process to utilize when entering into international market.......5
P4 Different modes of entry into global market .........................................................................6
LO 3.................................................................................................................................................8
P5 Key arguments ......................................................................................................................8
P6 Approaches with related to Product, pricing promotion and distribution in variety of
international contexts..................................................................................................................9
LO 4...............................................................................................................................................11
P7 Various international marketing approaches M&S can adopt. ...........................................11
P8 International and Home orientation with ways to asses competitors. .................................12
Conclusion ....................................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International marketing is the application of various marketing principals in order to full
fill or satisfy the demands or needs of different individuals living across the national boundaries.
It is also knowns as Global marketing. This report is in context of Marks and Spencer which is a
leading supermarket chain in UK as well as various countries all around the world. The report
will focus on identifying key concepts and scope of the cited organisation with regards to
international marketing. The study will identify ways in which Marks and Spencer can
effectively develop or expand its business into international markets. Furthermore, the report will
also determine ways in which Marks and Spencer organise its efforts within the international
marketing application or activity.
LO 1
P1 Scope and key concepts of international marketing in Marks and Spencer
International marketing plays an important role in developing or performing successful
functions and operations. The major objective of implementing or adopting international
marketing in Marks and Spencer is to develop an impressive or significant scope for the
business. The application of international marketing is also important for an organisation such as
Marks and Spencer while promoting or marketing its products or services in various countries in
the world such as Mexico, China etc(Cavusgil and et.al, 2014). There many areas of scope
related to the implementation or application of international marketing which are described as
below -
1. Exports – Exports is a concept that helps in increasing the performance of a brand or
organisation various countries across then world. Marks and Spencer exports its goods
across the national boundaries. International marketing helps in increasing quantity of
export goods or products which leads to high profitability for the organization. Exporting
of products helps the organisation in increasing their market share which is also
beneficial for growth and development of the business.
2. Import – The import of goods or services works exactly same as it works for every
individual in a country. The organizations such as Marks and Spencer purchase products
from abroad in order to resale them to potential customers in the local market. The
organisation maintains an impressive image within international or global market to
ensure effective product line and creation globally.
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3. Contractual agreement: When the organization needs to raise their tasks in global zones,
they have to thought about its extension to make more prominent opportunity to
accomplish more activities and capacities. Authorizing additionally moves towards the
more successful agreement that are required in all aspects of the nation. Along these
lines, trademarks, patent, privileged insights, and so on components requires for brand
and brand name. It gives better chances to expand business piece of the pie and
productivity in the few activities. (Amankwah-Amoah and et.al, 2017)
4. Joint venture: Joint venture is likewise association form by collaboration of two brands at
sensible to time. Henceforth, the organization create viable outcomes through deliver
viable outcomes. Wandering brand and division of benefits takes in the specific measure
of proportion. Thus, Joint wander make viable outcomes into the local organization with
its extraordinary enthusiasm for a specific field and thought about successful activities. In
various countries, it raises degree and capacities to improve performance.
5. Contract production : In this sort of assembling perspective, principle extension is that the
organization can utilized strategies that serves to diminished cost of generation to
improve comes about. Moreover, it is primary obligation to collect products itself. In this
manner, contract has been made to keep successful advertising. In this way, producers
contract is decides. In Marks and Spencer, this procedure cuts cost and empower simple
and leave route in the meantime.
Rationale
 International marketing makes sure comparative cost benefit to all participating countries.
These countries avail the benefits of division of labour and specialization at the
international level through international marketing.
 It provides better utilization of surplus production. Goods produces in surplus in one
country are shipped to other country.
International marketing includes the identification of needs or demands related to customers in
the global market in order to achieve competitive advantages. Hence, International marketing
helps in developing and coordinating various marketing activities in domestic as well as
international market or business environment. Various authors stated that international marketing
consider business performance and functions in order to design most appropriate promotional
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techniques or methods to market their products or services all around the world. However, the
concept of international marketing is different from the domestic or local marketing which
enables Marks and Spencer to involve or consider various elements with regards to attract
customers in the international or global market. There are various concepts created in the
business environment in order to develop effective international marketing orientation, these
concepts are as described below -
 Poly centric approach – According to this concept each market and its needs are
considered to be unique and required to be addressed in different ways. Therefore,
organisation conduct their own research in order develop effective plans for products and
services. Pricing positioning and promotional strategies helps in achieving organizational
goals and objectives.(Morgan and et.al, 2018)
 Ethnocentric approach – In this approach or concept, there are different products
developed on the basis of customers needs and demand in the local or domestic market.
 Regio-centric approach – According to the Regio centric approach market segments are
developed on the basis of market similarities. Marks and Spencer effectively plan their
business activities or operations with regards to various types of market segments.
 Geo-centric approach – The Geo-centric concept states that an organisation or
manufacturer develops and offers identifiable or homogeneous products and services
within each and every market area all over the world to gain competitive advantages and
increase profitability of the firm.
P2 Rationale to market internationally and the various routes to market.
Customers are rationale in their nature, they purchase and adopt only those services
which are not much costly and consist various quality features. An organisation requires to
analyses and identify market challenges and demands of the customers before targeting a market
at international level. Marks and Spencer effectively perform market research and analyses
customer needs and demands in order to effectively target new market globally. The main
objective of Marks and Spencer is to attract customers from every market segments. In order to
achieve international market position or market-share organizations utilize various strategies or
routes as described below -
 Licensing: Licensing is the modern game plans or technique to go into the global market.
It gives incredible effect on the conduct of customers, in this procedure frames exchanges
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the rights to different business element to offer their image products. It is the best
compelling procedure to make the great nearness in the brains of customers. Permit is the
basic understanding without which nobody can have ideal to offer the products without
the authorization of principle proprietor.
 Franchising: it is the technique to go into the global market. Alongside that, Franchise is
the procedure in which organization permit to other firm to take its establishment and
open the organization in the specific market. It is commonplace North American process
for fast market extension. In addition, in this procedure Marks and Spencer can give their
establishment to other organization in global l advertise or in which they need to enter.
This strategy is helpful for those organizations which mark esteem is high and generally
requesting.
 Partnership : It is another technique or approach to went into the global market. In this
procedure organization share its benefit and misfortune with another organizations or
business. This procedure is successful at the time one accomplice having great market
picture. Additionally, in this procedure Marks and Spencer can shape an organization
concurrence with different accomplices. It has assortment of structures in which they
work its professional co showcasing, courses of action to a modern key
partnership(Schmid and et.al, 2016).
 Purchasing an organization: In some market organization purchase a local organization in
to make their own essence in the new market. It gives incredible opportunity and
administrations to the customers. This great in the event that where organization has
considerable piece of the overall industry. This procedure enables face to diminish the
immediate effect of the administration and contenders. Purchasing organization can
without much of a stretch influence compelling status of being a nearby organization you
to will get the advantages of local showcase information.
 Joint Ventures: it is the same sort of association that includes the making of new
organization any including two organizations' capacities. Alongside that, it is another
gainful technique which Marks and Spencer can adjust to going into the new market. It is
another compelling procedure through which organization can without much of a stretch
influence the brand to esteem and picture in that market(Wu and et.al, 2016).
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 Turnkey Projects: in this system which organization influences certain ventures in which
they to give administrations with respect to counseling, design, development and
building? Turnkey ventures have certain time-frame in which organization achieves the
customer's needs and after that that product will arrive at the end.
 Greenfield speculation: it is another technique to going into the new market. Greenfield
speculation requires the best inclusion in global business. This is the procedure When
Company purchases a land in that place and fabricate the office and work the business on
a progressing premise in remote market.
Based on various techniques of going into the market. Marks and Spencer can without much of a
stretch takes any of the procedure to go into the universal market. It gives extraordinary effect on
the business association. Magnificence M&S needs to embrace Partnership technique to pitch
their excellence products to the customers.
LO 2
P3 Key elements and selection process to utilize when entering into international market
Key elements
1. Product with regards to Marks and Spencer in the Dubai market, the first component of
showcasing blend is item. In worldwide advertising blend setting, Marks and Spencer
created new item dispatch is T-shirts since Dubai populace is high and there are
expansive measure of youth age.
2. Value Second component of worldwide advertising with the setting of Marks and
Spencer in Dubai showcase is costs of the T-shirts. Its costs will be high since it
monetary condition is great. Cost has been spoke to the item esteem regarding cash in the
market.
3. Place-Third component of worldwide advertising with the setting of Marks and Spencer
is put. Organization has been managed global promoting at Dubai. Place is that
component where merchandise and ventures are trade among vendor and purchasers.
In order to enter the international market organizations such as Marks and Spencer needs
to develop or grow various strategies and plans. It is very important for an organization to adopt
and exercise international marketing evaluation procedure, it assists to measure the market
condition. There are various stages for evaluation as described below -
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 Country identification - Selection process is very important in order to identify the
country for cited venture such as Marks and Spencer needs to identify a country which
can be appropriate for sale of its products and services. There are huge areas or
international markets which shares similar cultures, market conditions or heritage, so it is
essential for an organisation to identify the demand or needs of the customers as well
competitors in a particular country before entering or targeting it(Gillespie and et.al,
2015).
 Parameter for selection – The next process of selection is to select the criteria and
parameters for evaluation Other parameters of selection are international business
environment, resources, nature of competition, market situation and government policies.
 Preliminary screening – The goal or aim of the preliminary screening is to measure the
market value and identify the procedures to develop effective functioning in the
organisation. The evaluation of the market is very important in order to identify various
elements or factors needs to be considered for selecting the best quality services or
products while entering into a new country or market.
 Short listing of market – The short listing of markets is an important process after
screening, in this process organization needs to select the most suitable market form a
wide range of options in the international or global market.
 Evaluation and selection – In this step process the shortlisted markets are further analysed
and measured by the cost benefit analysis as well as feasibility. This process of selection
helps in evaluating long lasting procedure to develop of expand business in a new market.
 Test marketing – The Test marketing is a process in which organisation test its marketing
techniques or methods within the new selected market for analyzing the response from
the customers. These responses or feedbacks helps the organisation to make suitable
changes or modification in their marketing process for obtaining the best results or
outcomes.
 Commercial production – In this process organisation follow their decisions and
implement their strategies and operations to start their business activities within the new
market and achieve a good position by attracting customers.
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P4 Different modes of entry into global market
Market entry strategies are the procedures in which organization offering new goods and
services into a new aggressive market. Export and import of the products or services will
upgrade the development of the organization at global level. In addition, organization needs to
quantify a few issues and difficulties they may face, for example, showcasing, sourcing and
venture and Control. With the assistance of various systems of market organization can go into
the market. Alongside, Marks and Spencer needs to dissect the distinctive parts of promoting as
far as getting the best profitable effects. Besides, advertise methodologies help to develop the
chances of organization at global level. Global association are dependably experiences and
experience diverse difficulties, this gives negative effect on the association and gives
unfavorable outcomes on the conduct of customers(Gnizy and et.al, 2014) Alongside that, each
mode have their own particular points of interest and weaknesses in like manner they carry on in
the market some after courses and their focal points and detriments are given beneath.
1. Licensing – It is a process in which organisation are provided a license to operate or
perform their business activities in a particular marker or country. The license is a type of
authority every organisation requires before trading within a market place at global level.
Advantages
 Passive revenue opportunity – The owner gets an opportunity to issue license of its
organisation or brand which helps them to enhance and develop their business into
various markets globally. Further, it leads to increase in market share and profitability of
the business.
 Helps in earning profit – Licensing is far better than owning the intellectual property, it
does not require much finance and can support to expand business easily.
Disadvantages
 Loss of intellectual property – There is high risk of securing intellectual property in
licensing process.
 Dependency on the license provider – The party which provide license to another firm
has a great control on the licensee, it can demand for profit share or increase cost of
license anytime.
2. Franchising – It is a most popular form or type of method used by organizations in order
to enter in a new market, in this process a semi-independent entrepreneur pays royalties
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and fees to the franchiser to utilize an organization's trademark and sell its good and
services in a market.
Advantages
 Ownership remains with the business owner
 Reduce the risk of failure
Disadvantages
 Its much costly than licensing as franchising requires a lot of funds
 Profit is required to be shared among the franchisers which is negative aspects of
franchising.
3. Joint venture - It is another technique used to enter in the global or international market,
The joint venture refers to a business in which two or more business collaborate for
sharing profit and loss mutually. Marks and Spencer uses this method in-order to enhance
its market-share and improve its brand image as well as popularity.
Advantages
 This method assist in understanding insight of new business or organisation with the help
of collaboration
 It also helps in obtaining different types of resources such as skilled employees,
innovative technology etc.
Disadvantages
 High pressure of work and complexity in organizational functions
 It also affects the profit share of the business in the joint venture developed.
LO 3
P5 Key arguments
Global market is a huge trading paltform within which huge multinational organizations
makes the extensive variety of product and administrations. Magnificence M&S gives assortment
of administrations or products to the potential customers, for example, clothes and apparel.
Keeping in mind the end goal to influence global nearness to organization needs to make the
compelling procedure of working. On alternate sides, in nearby market customers or benefits are
restricted to some specific broaden. Excellence M&S likewise gives their administrations at
online level. In addition, they likewise need to offer everywhere throughout the world. Nearby
and global market is only inverse from every others. It gives new opportunity and quality to roll
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out powerful improvements for the customers by offering new administrations of products. At
global level products are accessible at extensive variety of assortments of products. Additionally,
in local showcase purchasers are boundless yet vendors are restricted to some degree. Global
market is more gainful and viable procedure of working which should be exceptionally good
among others. Plus, global market includes intense competition and hazard factors. Alongside
that, nearby market has constrained degree, however these days local market and organizations
wants to take its business at global level to get the customer satisfaction by offering innovative
product and administrations. Also, additionally the principle target of the organization is to
snatch new outer openings and development besides the another goal is to achieve the global
testing and customer needs and demands. This establishes great connection on the conduct of
brand esteem and brand picture. The 6th yearly Millennium grounds meeting assembled to
talking about the diverse issues in global improvement. Or on the other hand on the theme of
global or local administrations(Constantinides and et.al, 2014)
At global level of administration parts and duties has honey bee expanding and in various
structures organization needs to make long structure high beneficial enlistment process,
operational capacities and so on. In nearby market work level is constrained and limit, amid the
procedure of global market organization confronting issues and difficulties of outside condition
too, for example, political, lawful, mechanical and the principle hazard is competition level. This
procedure decreasing the extent of global market. Some nearby organizations receive distinctive
methods of going into global market. For that, they roll out improvements in like manner. On the
opposite side, it likewise makes great reaction to have the great effect on the conduct of business
condition. Global level business is exceptionally wide and extended as far as making great
nearness of new product and administrations. Global passage business or organization makes one
of a kind and distinctive product and administrations for the customers. Civil argument on global
and local prospects gives rising pioneers in global improvement, it upgrades the comprehension
among organizations and customers. Another real angles or distinctive between customers they
present global and exceptional encounters for customers. It additionally gives successful
procedure of working
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P6 Approaches with related to Product, pricing promotion and distribution in variety of
international contexts.
The real component for the organization is product and administrations offering by the
associations for which organization work its business nearby to global level. Additionally, this is
another primary concern for Marks and Spencer to advance their products benefits in awesome
expand. Organization needs to embrace global advertising blend for its business. It beats the
contenders evaluating approaches. Showcasing blend is the apparatus to achieving the objective
of the organization assistants of getting great reaction of the customers. Magnificence M&S
needs to receive global advertising procedures to set their own showcasing blend components.
Elements of international marketing mix.
 Product Mix: Product mix is the way toward making great picture in the customer minds.
Magnificence M&S needs to decide the customer needs and desires regarding enhancing
the brand and profit in the global market. Product is the fundamental point of the
organization to focus on the customers. In addition, International markets includes
immense assortment of product as indicated by the customer religion, purchasing
propensities, foundations and so forth organization need to embrace product showcasing
blend to address the issues of global purchasers. Additionally, Marks and Spencer needs
to think of the new inventive approach which gets the customer satisfaction(Armstrong
and et.al, 2015).
 Promotion Mix: Promotional blend technique is the basic piece of advertising, this
segment make product mindfulness and influence organization to vary from another
organizations. This ought to be imaginative and distinctive through which customer get
draw in towards the organization products. This is the very congenial blend. Universal
product blend ought to be institutionalize. For that, organization needs to embrace pulling
in product message and special arrangement through which customer get inquisitive to
have those products and administrations. For making limited time arrangements Marks
and Spencer will require to have statistical surveying to get the genuine patterns of the
market.
 Price Mix: Pricing is the another significant component after product, in global setting
organization set costs based on contenders cost. Global estimating methodologies are
altogether different as indicated by the customer requests and customers planned. To set
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