International Marketing Report: Marks and Spencer's Global Expansion

This report provides a detailed analysis of Marks and Spencer's (M&S) international marketing strategy, focusing on its expansion into the Australian market. The report begins with an introduction highlighting the importance of international marketing in a globalized economy and its impact on business growth. It then delves into a PEST (Political, Economic, Social, and Technological) analysis of the Australian market to assess its suitability for M&S's expansion. The report further explores various market entry strategies, including exporting, franchising, strategic alliances, and merger and acquisition, recommending the most effective approach for M&S. A key section focuses on positioning strategy, emphasizing the importance of establishing a premium and quality brand image to attract consumers. The report also discusses the benefits of international marketing to the business, such as reduced production costs and access to new technologies. Finally, the report analyzes relevant academic theories, such as Vernon's product life cycle theory, to provide a theoretical framework for understanding M&S's international marketing decisions. The report concludes by summarizing the key findings and recommendations for M&S's successful global expansion. The document is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION ..........................................................................................................................1
PEST ANALYSIS.......................................................................................................................1
ENTRY PLAN AND POSITIONING STRATEGY..................................................................3
BENEFITS OF INTERNATIONAL MARKETING TO BUINSINESS...................................4
ACADEMIC THEORY ANALYSIS.........................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Globalization has created a significant impact on the growth and development of the
business unit which helps in developing a significant impact on the business growth in this
highly competitive economy. Companies are adopting different measures to enhance the growth
and development aspects in the economy. National boundaries have faded gradually by
increasing measures of international trade within the economy. Aljukhadar and Senecal (2011)
stated that expanding the business reach for different organizational units helps in creating high
and effective growth aspects within the economy. However international marketing is a complex
and highly competitive process for the business. Global process of planning, organizing and
executing conception, pricing, promotion and distribution of ideas, goods, and services have to
be analysed to develop a significant brand identity within the economy.
The present study will develop an in-depth study on the business operations of Marks and
Spencer in the international market. The British multinational retailer has developed a significant
brand identity within the market (Marks and Spencer, 2015). The company is operating its
business in more than 48 countries around the world which has helped the retail unit in attaining
significant brand identity within the economy. The present report will deal with different aspect
considered while analysing the international trade policy for the business. It will effectively
evaluate the factors associated with global operations and planning aspects.
PEST ANALYSIS
M&S is a well established fashion retail unit which is successfully operating in more that
48 countries around the world. The organization has attained a renowned brand identity within
the economy. Well structured and effective business operations of the company has developed
significant growth and development measures. M&S is currently planning to expand its business
operations in the leading market of Australia which will help the business in developing a
significant growth and development aspect in the economy (De George, 2011). Australia is a
developed nation which has developed significant growth aspect within the economy. The
expansion of business unit in Australian market will help the business unit in attaining high and
effective growth aspects. The PEST analysis for the international expansion options is discussed
henceforth.
1

 Political factors: These factors play a significant role in defining the business operations
of the company and attaining high and well defined business objectives for the company.
The political factors play a significant role in planning and developing international trade
aspects for the business unit. Australia is a developed country which has attained political
stability within the economy. The country has developed liberal trade policies within the
market. The government regulations and restrictions on the business operations are
minimum. UK and Australia has developed favourable trade relations within the
economy which will help the business unit in creating a significant impact on business
growth aspect. M&S has established online stores in Australia (Simkin, 2008). The
country can now develop a physical store to enhance sales in the tourist economy. Economic factors: The economic factors has a significant impact on the growth and
development of the business units in the foreign market. These factors include growth
rate, population rate, inflation, currency value, employment and educational factors etc.
Australia is a developed nation which has attained effective growth and development
measures within the economy. The growth rate of the country is high. The inflation rate
of the business is low which will help M&S in creating significant growth aspects in the
economy. Social factors: Social factors have significant and well defined impact on the growth and
development aspects of the business unit. The Australian population is influenced by the
western culture and has created a significant impact on organizational development
measures. Social influence on consumer trends has a significant impact on business
analysis. Analysis of these factors will help M&S in analysing the market demands and
trends in the new market. Australia is one of the leading tourist destination in the word.
High rate of tourist will help the company in developing an effective and well defined
impact on brand image by delivering product availability for the business (Wood, 2008).
 Technological factors: Technology has a significant role in developing growth and
development measures for the business unit. The technological factors are the crucial part
of the business growth. Australia has developed effective and well defined technological
infrastructure for he business growth. Expansion in Australian market ill help the
company in developing effective and well defined growth aspects. Moreover, effective
2

technological base will help the company in attaining effective quality, speed and
efficiency of the product and services.
ENTRY PLAN AND POSITIONING STRATEGY
Market entry plan
Market entry planning is a significant and most crucial factor in international trading
measures. Enhancing market reach of the business demands high and effective market research
in the economy to attain well defined growth aspects in the economy (Hill, 2012). M&S will
have to analyse and evaluate effective means of marking analysis to evaluate the market potential
and effectiveness of the Australian market. The factors associated in the process will include
well defined growth and development measures within the company. The market entry strategies
which can be adopted by the business includes: Exporting: This strategy focuses on enhancing the measures of direct selling in the
foreign market which helps in creating a significant and well developed impact on
organizational sales (Wilson, 2010). Direct and indirect exporting measures are the
prospective options which can helps the business unit in attaining well defined business
objectives for the company. This strategy includes process of licensing where a firm
transfers the rights to the use of a product or service to another firm. While indirect
exporting involves involving and agents or distributors for selling organizational
products. This strategy will be ineffective for M&S as it will enhance the cost for the
business and market share of Australian market is relatively low. Franchising: This is yet another effective measure adopted by the business unit where
the rights and ownership of the products and services is transferred to another company to
enhance the sales of the company in the same name. It is a measure where the company
and transfers ownership of the business but manages the control of operations. This will
not be effective for M&S as the company has established the online infrastructure in
Australia. The company outlet of the business will be effectively managed by the
organizational employee to develop significant growth measures in the market (Kotler,
2011). Strategic alliance: This strategy of strategic expansion focuses on creating a significant
growth and development measures for the business by aligning the business policies with
a well established business unit in the international economy. This helps the business in
3

attaining effective and well developed idea of the new market in terms of cultural aspect
and local details. However Australian culture and social trends are similar to that of UK
thus this strategy of market entry will have Low impact on business growth. Merger and acquisition: This is one of most effective and well defined strategy of the
business where companies adopt a measure of mutual partnering or acquisition of the
business in the foreign market. M&S has developed an effective and well defined brand
identity in the market. The financial position of the business is strong and well defined.
Merger and acquisition measures will help the business in attaining effective growth
measures in the economy. This market entry strategy will help M&S in attaining high
market share while minimizing the competition in the economy (Cohen, 2005).
Positioning strategy
Positioning strategy for the business plays a significant role in attaining growth and
development aspects in the international market. It helps the business unit in enhancing sales and
developing the consumer perception in the foreign market (Relationship Between Strategic
Planning & Marketing Strategies, 2015). Effective positioning helps the business in creating a
significant impact on the brand identity of the business. M&S is a well established and renowned
brand of the market. The organizational development measures demands effective positioning
measures to develop sales in the economy. M&S will focus on positioning the business unit as
premium and quality effective brand for the employees. It will adopt standardization strategy for
establishing the global brand in the economy and attaining high and effective sales measures for
the business (Breton and Martín, 2011). This strategy will focus on managing the quality, brand
value and pricing measures in the foreign land for enhancing the sales and market share as well.
Moreover, this positioning measure will help he business in attracting tourists and visitors as
well. Overall, it can be said that by making use of these given international approach cited firm
manager can appropriately run its operation in global market. This thing will also ensure success
of firm in international platform (Krishnamurthy and Singh, 2005).
BENEFITS OF INTERNATIONAL MARKETING TO BUINSINESS
It is very essential for the corporation that it should make use of one specific positioning
tactic when making decision to expand the business of firm in international market. This is
because, positioning tactic will help in showcasing distinct image of firm in the eyes of its buyers
(Keegan and Green, 2010). Furthermore, the tactic will also help in term of attracting large
4

number of buyers towards enterprise in an effectual way. Hence, through this way overall
benefits can be gained by firm in the form of increased profits and sales (Yi, 2014).
However, there are some reasons explored which entail that Marks and Spencer should
expand its operation into international market. These reasons can also be see in the firm of
benefits which firm could gain while opening its physical store in Australia. These are depicted
in below: Reducing cost of production: The production cost of enterprise will be reduced if it would
avail labour at cheaper cost in comparison to its home country (Paliwoda, 2013). The cost
which firm will save through this activity can be used by it for some other useful purpose.
In addition to this, this will also provide opportunity to cited enterprise with regard to sale
its product in respective market at low prices.
 Technology: Manager of Marks and Spencer can also improve its understanding
regarding the modern and innovative technique which is being used by different
Australian companies. This will help in terms of streamlining the operation of Marks and
Spencer company in Australian market (Winston, 2012). Overall, it can be said that there
are significant advantages being associated with the activity of expanding operation of
firm in global market.
ACADEMIC THEORY ANALYSIS
Different type of academic theories assessed which manager of Marks and Spencer should
consider when making the decision of expanding the operation of firm in Australian market. The
in-depth explanation of them is depicted in below: Production cycle theory of Vernon: It is the foreign direct investment theory which was
developed by Vernon in the year 1966. Herein, author believe that production cycle tend
to possess four different type of stages and it consists of innovation, growth, maturity and
decline etc. By taking help from this theory manager of Marks and Spencer can learn the
manner in which it can carry out investment in foreign market such as Australia (Lee and
Carter, 2011). Herein, the respective theory entail that at first manager make production
of goods and services for the consumption of local people. However, surplus of product is
distributed by corporation to other nation through export. Here, in the innovative phase
manager of firm gain the advantage as they possess new technology. However, when
product become known to market at that time the type of technology which firm is using
5

for the production of good will also be revealed in front of other firm. Hence, in this
circumstance the competitive advantage of Marks and Spencer will get lost. This will
create problem for the firm in terms of effectively operating its operation in international
market. Furthermore, the given thing will also hamper the sales and profitability related
condition of enterprise in negative manner. Hence, the given theory entail that Marks and
Spencer should make use of some innovative approach when it wants to get entry into
international market (Kotler, 2011). However, if firm will not follow such type of
approach then it becomes very difficult for enterprise with regard to survive in Australian
market in an effectual way. Uppsala model of internationalisation: It is being regarded as another most useful model
for internationalisation. This theory entails about the steps which manager of firm should
use in order to get entry into foreign market. The given model state that at first firm
should gain experience of domestic market before getting entry into foreign market. The
manager of cited firm should also follow given approach. This is because, it is through
this way only firm can make conclusion that the operation which it is carrying out in
domestic market will be proved as successful in international platform or not. However,
in the next phase firm should start working in such country which is close to the culture
of nation where firm is planning for expansion (Hollensen, 2010). For instance, manager
of Marks and Spencer is planning for expanding its operation in Australian market. Then,
in this situation at first it should launch its store in such country which are closely
attached to Australian market. Here, by complying with given type of activity manager of
firm can get information about tastes and preferences of the Australian buyers. Hence, in
the last phase firm should get entry into Australian market. Here, with an aim to make
entry into respective market manager of corporation can make use of different market
entry tactics such as exporting, franchising and many other ways etc. Hence, it is being
required by manager of Marks and Spencer that it should follow uppsala approach when
it is planning for getting entry into foreign market. But, if firm will not follow respective
approach then there are greater chances that it will not attain much success in new market
(Clegg, Kornberger and Rhodes, 2007).
 Internationalisation theory: It is another theory of foreign direct investment which is
given by Buckley and Cason in the year 1983. These authors have suggested two major
6

determinates of FDI and it consists of removal of competition and entering within market
with the help of one significant competitive advantage. This particular type of tactic
needs to be used by Marks and Spencer in Australian market (Aljukhadar and Senecal,
2011). In this regard, it should explore one specific competitive advantage which will
work well in respective market where it is planning for expansion. Here, through this way
only corporation can mark its effective presence in international market. Thus, the given
thing will help in improving profit of firm. Overall, it can be said that by making use of
these given international approach cited firm manager can appropriately run its operation
in global market. This thing will also ensure success of firm in international platform
(Taylor, Zou and Osland, 2010).
CONCLUSION
International expansion is a challenging task for the business unit as it helps the
companies in effectively attaining the business objectives of the organization. This strategy has
enhanced the business growth measures in the economy. It creates a significant impact on
business development measures. Global process of planning, organizing and executing
conception, pricing, promotion and distribution of ideas, goods, and services have to be analysed
to develop a significant brand identity within the economy. The above study reflects that M&S
has developed a significant growth measures in the Australian market. This will help the
business in enhancing sales and market share in the market.
7

REFERENCES
Books and Journals
Aljukhadar, M. and Senecal, S., 2011. Segmenting the online consumer market", Marketing
Intelligence & Planning. 29(4). pp.421–435.
Breton, G. C. and Martín, M. O., 2011. International market selection and segmentation: a two-
stage model. International Marketing Review. 28(3). pp.267–290.
Clegg, S., Kornberger, M. and Rhodes, C., 2007. Business ethics as practice. British Journal of
Management. 18(2). pp.107-122.
Cohen, W. A., 2005. The marketing plan. John Wiley & Sons.
De George, R. T., 2011. Business ethics. Pearson Education India.Garoufallou, E. and et.al.,
2013. The use of marketing concepts in library services: a literature review. Library
Review. 62(4/5). pp.312 – 334.
Hill, C., 2012. International business: Competing in the global market place. Strategic Direction.
Hollensen, S., 2010. Marketing management: A relationship approach. Pearson Education.
Keegan, W. J. and Green, M. C., 2010. Global Marketing. New York, Prentice Hall.
Kotler, P., 2011. Reinventing marketing to manage the environmental imperative. Journal of
Marketing. 75(4). pp.132-135.
Kotler, P., 2011. Reinventing marketing to manage the environmental imperative. Journal of
Marketing. 75(4). pp.132-135.
Krishnamurthy, S. and Singh, N., 2005. The international e-marketing framework (IEMF):
Identifying the building blocks for future global e-marketing research. International
Marketing Review. 22(6). pp. 605–610.
Lee, K., and Carter, S., 2011. Global marketing management. Strategic Direction. 27(1).
Paliwoda, S., 2013. Perspectives on International Marketing - Re-issued (RLE International
Business). Routledge.
Simkin, L., 2008. Achieving market segmentation from B2B sectorisation. Journal of Business
& Industrial Marketing. 237. pp.464–474.
Taylor, C. R., Zou, S. and Osland, G. E., 2010. Foreign market Entry Strategies of Japanese
MNCs. International Marketing Review. 17(2). pp. 146-163.
Wilson, R. M., 2010. Strategic marketing planning. Routledge.
8

Winston, W., 2012. How to Write a Marketing Plan for Health Care Organizations. Routledge.
Wood, M. B., 2008. The marketing plan handbook. Pearson Prentice Hall.
Yi, D., 2014. Analysis of Tourism Products Marketing Ideas of" Huihang Road" Wechat
Account. China Internet. 5. pp.027.
Online
Marks and Spencer. 2015. [Online]. Available through: <www.marksandspencer.com>.
[Accessed on 29th June 2016].
Relationship Between Strategic Planning & Marketing Strategies. 2015. [Online]. Available
through <http://smallbusiness.chron.com/relationship-between-strategic-planning-
marketing-stategies-22561.html>. [Accessed on 29th June 2016].
9