Marketing Audit Report: Analysis of Marks & Spencer's Strategy

This report presents a comprehensive marketing audit of Marks & Spencer (M&S), a prominent British multinational retailer. The report begins with an executive summary and an introduction, providing background information on M&S, its history, and product offerings, which include food, home products, and clothing. The main body of the report delves into a detailed analysis of the company's background, followed by a macro-environmental analysis using the PESTEL framework to assess political, economic, social-cultural, technological, environmental, and legal factors influencing M&S. A micro-environmental analysis examines the internal aspects of the company and its immediate market. The report also includes a competitor analysis, identifying key rivals and their strategies, followed by a SWOT analysis to evaluate M&S's strengths, weaknesses, opportunities, and threats. The report concludes with a summary of findings and recommendations, supported by a list of references. The report provides a holistic view of M&S's marketing performance and strategic positioning.

Marketing audit report

Executive Summary

Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Company/Brand background.......................................................................................................1
Macro Analysis............................................................................................................................1
Micro Analysis.............................................................................................................................5
Competitors Analysis...................................................................................................................6
SWOT Analysis...........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing audit is considered as the comprehensive, systematic, analysis, evaluation and
interpretation of business marketing surrounding, both internal as well as external, their
objectives, tactics, principles for ascertaining the problem areas and opportunities and to
recommend a action plan for enhancing the entity’s marketing performance. Moreover, it assists
in determining how effective the company’s marketing department is performing market
practices and obtain knowledge about overall performance of their business. The company that is
undertaken for this report is Marks & Spencer which is one of the well known British
multinational retailer which mainly deal in food products, home products and clothing. Its
headquarters is in London, United Kingdom and was established by Sir Michael Marks and
Thomas Spencer in year 1884. The topics which are going to be discussed in this report are
company or brand background, macro analysis and micro analysis. Moreover, competitor
analysis and SWOT analysis are also described in this report.
MAIN BODY
Company/Brand background
Marks & Spencer is known to be one of the leading and largest retailer firm which operates in
into huge market with various products. Moreover, it mainly deal in food products, home
products and clothing. Its headquarters is in London, United Kingdom and was established by Sir
Michael Marks and Thomas Spencer in year 1884. In addition to this, as of year 2020 there were
around 1, 038 stores which are located within United Kingdom as well as 481 other shops
situated across teh world. Across their business practices globally, firm employs about 75, 000
individuals among them major people are female. Additionally, they have board range of options
available
Macro Analysis
A PESTEL assessment offers a framework to research a company’s non-controllable outside
elements that have the ability to have an impact on its operations. By analyzing these, an
enterprise is in a better function to take into account probably implications and minimize any
future agency-associated danger. So, PESTLE analysis of Marks & Spencer are described below:
1. Political factors
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In keeping with analysts, M&S has been favourably tormented by the EU fee’s free
exchange agreements which have made product imports a good buy less complicated (EC, 2013)
and function delivered about a decrease in sourcing fees. however, the run-up to and outcome of
the British EU referendum on 23 June 2016 resulted in a dip in the organization’s sales in its last
region. due to a tremendously higher rate structure, the company has also suffered market
percent losses while entering into new markets (Marks & Spencer, 2015). In 2015, M&S
professional stalled boom in its international organization because of worldwide uncertainties,
substandard infrastructure, and reduced profitability in new markets which cause the very last of
twelve stores in 2016. Geopolitical unrest moreover affected the agency’s foreign places
operations (Marks & Spencer, 2016). the worldwide franchise groups of M&S in the Middle
East, Russia, and Ukraine additionally suffered great decline because of geopolitical instability,
neighborhood overseas cash fluctuations, and decreased consumer call for (Marks & Spencer,
2015).
The organization, eponymous with its environmental and moral ‘Plan A’ inexperienced
technique, has also been vital of the shortage of readability in the authorities’ flagship energy
efficiency scheme, the green deal, similarly to in its transferring green measures guidelines. One
example is the dearth of a price on plastic carrier bags and the manner this is affecting the
organization’s efforts to put into effect sustainability measures.
2.Economical factors
At some stage in the monetary disaster of 2008, at the equal time as competition in
conjunction with Aldi, Asos or Tesco determined an approach of discounted pricing, M&S
emphasized higher first-rate products and higher customer delight. at the same time as this
approach brought on a quick-time period decrease in income, it ended in a protracted-time period
growth in customer self-perception because of British customers’ preference and desire to are
seeking for both fee and fine. In 2015, this method helped the commercial enterprise
organization keep its marketplace proportion in most of its markets and gain robust income in
key owned markets in conjunction with Hong Kong or India. but, the prolonged financial
catastrophe has additionally improved the rate sensitivity of as soon as reliable M&S clients. in
addition, in the past couple of months several macroeconomic issues, falling commodity prices,
pound fluctuations, and a stunning drop following the Brexit vote precipitated consumer self-
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belief to drop. further, apparel income reached a 10-one year low in Britain and falling oil
expenses negatively impacted shops’ overall performance in the middle East (M&S, 2016).
3. Socio-Cultural factors
Two extermal elements that affect the store include converting values in the population
and a technology shift – with the child Boomer generation retiring, the company has to redirect
its interest to technology X and the Millennials. remarkable generations bring perceptible shifts
in patron behavior, from the manner customers do their buying, the channels and generation they
use to how products are perceived. traits the store need to think about are the special
generations’ consumer alternatives for fashionable devices and/or the growing perception that
British produce is now not taken into consideration to be of high exceptional.
Green consumerism and clients’ ethical issues approximately the socio-environmental
expenses of producers they use is one of the factors contributing to the improvement of
corporations’ sustainability reporting and associated sports. within the case of M&S, the
organization has placed amazing emphasis on its social schedule. As said in its last annual report,
and as a part of its Plan A, the now 9-12 months-vintage strategic sustainability plan of the
commercial enterprise organization – constructing relationships with clients and carriers and the
organizations wherein they function – is essential for the enterprise. In 2015, food surpluses were
allocated via jogging with redistribution partners through a ‘network hold’ program, whilst in
2016 a ‘Spark something suitable’ campaign engaged 1000 personnel in network artwork and
charity movement days (Marks & Spencer, 2016).
4. Technological elements
M&S is in a notable strategic position to experience the blessings of an altering media
panorama, the proliferation of social networks, and a rising cell wave. As regards its fashion
business enterprise, the speed with which the modern-day trends are being communicated to
designers has prolonged as has the fee of transportation. The buying revel in is now in massive
part seamless through the aggregate of on-line, tablet, cell and the physical experience in the
store.
It has moved from a platform hosted by using Amazon to its personal internet platform
which becomes launched at the giving up of 2014 to provide extra delivery alternatives and
streamlined multichannel services. The business enterprise has additionally released massive
facts projects alongside predictive analytics device and allocation replenishment (Thomson,
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2014), tailor-made its virtual approach using the ‘cellular-first method’ for this reason answering
the goals of purchasers who're increasingly more gaining access to the state-of-the-art
inclinations through the cell. A devoted digital lab group of one hundred fifty in-residence
software program engineers is walking to make sure the organization remains at the forefront of
technological tendencies (Marks & Spencer, 2016).
5. Environmental (Ecological) factors
With stricter environmental policies and policies each at ECU and worldwide level and
growing customer pressure regarding employer practices, maximum essential international stores
and brands need to take a look at the life cycle of its products from cradle to grave – from the
suppliers to give up utilization and disposal – to be genuinely transparent approximately their
strategic and tactical environmental practices and be completely responsible. Plan A, the
environmental and moral plan M&S has accompanied to serve as a spine to the manner agency is
being finished within and outside the enterprise, has helped the agency live in advance of the
curve thru sourcing responsibly, decreasing waste, and assisting stakeholder communities.
In 2015 a third of the employer’s merchandise had been sourced from Gold and Silver
sustainability fashionable manufacturers, whilst some other initiative called Shwopping has
caused 10.6 million garments (equating to £7.3 million) to be donated to Oxfam (Marks &
Spencer, 2015). a non-forestall investment inside the scheme has brought about numerous Plan A
merchandise, a Plan A incubator for the improvement of sustainable services and products as
well as the primary UK eco-factory. In 2016 the agency has moreover become completely
obvious about its delivery chain by using publishing a map of wherein the agency resources its
merchandise (Marks & Spencer, 2015). With sustainability turning into an increasing number of
crucial and beneficial techniques, the employer is beforehand of its competition in this location.
6. Legal factors
Health and protection rules, consumer rights, environmental, antitrust, and other criminal
elements have an impact on the company. one of the business enterprise’s tasks, ‘inside the back
of the Barcode’, gives customers an omnichannel revel in by using the use of permitting them to
order gadgets online for domestic transport or in-shop series thru scanning a product in-hold. that
is an instance of the high requirements with the useful resource of which the enterprise abides.
M&S has to ensure that it does no longer obstruct any laws or regulations every in its home
marketplace, in international markets for the duration of growth similarly to in the countries
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along its rate chain. The employer’s legal environment and therefore its felony branch had been
paramount in some unspecified time in the future of the corporation’s ‘clearly food’ chain
enlargement in 2007 and especially in allocating new keep web sites at BP petrol stations. the
trendy reporting suggestions M&S followed in 2014, collectively with a summary of their
remuneration framework (Marks & Spencer, 2015) goal to offer even greater transparency to its
stakeholders.
Following the UK’s preference to go out of the EU, the corporation, as will distinctive
united kingdom stores, is probably to face criminal issues. dropping get right of entry to the not
unusual marketplace will have an effect on supply chains, the free movement of humans, IP
rights, global contracts, and more. the selection will require new VAT guidelines in the region of
the VAT 0 rating for Intra-EU purchases and import obligations and tariffs may be imposed. In
mixture with the reduced searching for electricity of the pound and with £1.1 billion in income
coming from international markets, the enterprise wishes to prepare a strategic plan on how the
probable effect of Brexit may be minimized.
Micro Analysis
In the micro surroundings, the entire setup of the commercial enterprise agency turned into
revived if you want to replace it. the store interior in addition to the out of doors become
transformed into more communicative and it can compete with the alternative shops. The
company’s objectives (M&S) had been changed retaining in view the scenario at that point.
Segmentation is the division of the marketplace into a remarkable section of people having equal
likes/dislikes, tastes, and selections. It consists of psychographics, demographics, behavioral and
geographic. thinking about that M&S is figuring out new markets and it has moreover centered
the essential Asian market the 3 segmentation standards for its garb line so that you can help it to
higher discover the market are the demographics, geographic and the psychographic.
consequently the ones three are described underneath:
Geographic
international location
u. s. vicinity
climate
Density
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Thinking about the fact that its miles said that it has opened a shop for the predominant
Asian, for this reason, the styling of the garments is probably designed due to the fact the
weather of each the regions this is the UK and number one Asia is unique. The apparel made for
the ones in the united kingdom is different in assessment to the crucial Asians.
Demographics
Age, Gender
Family length, income, profession, schooling
Religion, race, era, nationality
Equal is the case with the demographics. The management has to see that for which
market they're presenting their garb. For foremost Asians, the garb wants to be absolutely
conservative but for the UK market, they want not to the consciousness of this thing. The
clothing made for the United Kingdom cannot run here in number one Asia as humans hesitate or
their faith does not supply them permission to put on them. There may be a marketplace for those
kinds of liberal clothes but the marketplace percent will be much less.
Psychographic
Social class
life-style
Personalities
The personalities and social education are the same but the way of life is a little bit
fantastic. I give up you'll say that those techniques can higher purpose the market at the same
time as the goals of every demographic, psychographic, and geographic place are met one by
one. those 3 criteria if met well can help the M&S to meet the customers of every place, choice,
and flavor.
Competitors Analysis
Competitors analysis in marketing as well as strategic management is considered as the
evaluation of strengths as well as weakness of present and potential rivals. Moreover, respective
analysis facilitates both an offensive aas weel as defensive strategic context to determine threats
as well as opportunities. In addition to this, it is vital as it facilitates firm information related
about competitors market its business and ways for penetrating the market by entry through
goods or services gaps into areas which their rivals do not serve or do not serve effectively.
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SWOT Analysis
SWOT Analysis is undertaken as the framework which is utilise through firm for
determining the competitive position within marketplace through analysing strengths,
weaknesses, opportunities and threats of business. In respect of Marks & Spencer, it evaluates
may be the techniques which could be utilised through firm to determine the strengths, weakness,
opportunities and threats for entity. So, the SWOT Analysis of Marks & Spencer are also
discussed below:
Strengths: It is undertaken as what all business do effective into their operations that may
provide it upper hand over their rivals. Marks & Spencer have various strengths which aids firm
to attain their objectives as well as development.
 Clear brand image: Marks & Spencer positions them self as higher ending value goods
that targets premium segment. Within sync with its brand image goods sold through
retailers mainly into clothing range are modern, sophisticated and stylishs. It have
outcomes into clear branding as well as clients are sure of that to expect from Marks &
Spencer shops.
 Diversity: Marks & Spencer has about 80, 000 staff who perform into its showroom as
well as offices across the world. Moreover firm motivates diversity as well a having
individuals from whole ethnicities, genders and religion. In addition to this, firm is also
have equal opportunities and assures that there is not discrimination of any form at work
area.
Weaknesses: These are utilised to referring to areas in which business or brands requires
improvement. Few Marks & Spencer’s key weakness are described:
 Consumer satisfaction: The clients are Marks & Spencer often exhibit lower level of
satisfaction as well as there has been various problems with regards to return policy and
in store experience. Also, it have outcomes into poor brand loyalty and enhanced brand
switching.
 Supply chain scalability: One of the greatest weakness which Marks & Spencer have is
bad scalability of supply chain. Though firm have been trying to provide international
access to its merchandise by its online store it has not able to scale up its supply chain for
delivering to whole locations internationally. Additionally, it has tried to reach out to
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Asia due to inventory circumstances and not sold it has to re-sort to end of season sales
for selling off its merchandise.
Opportunities: It refers to that avenues within environment which surrounds business upon
that they may capitalise for enhancing their returns. Few opportunities are:
 New segments: Fashion is undertaken as evolving business as well as new segments come
up upon continuous basis. Within Asia, there is large demand for ethic as well as
traditional wear that presently respective firm have not able to capitalise on. Additionally,
it is one area that may represents several promises to retailer.
Threats: It is those factors within atmosphere that may be detrimental to business
development. Few threats are discussed below:
 Competition: The key competitors of Marks & Spencer are Tommy Hilfiger, ZARA, and
others.
CONCLUSION
As per the above report, it has been concluded that marketing audit plays essential role within
firm’s marketing department. As this determine the areas which required improvement.
Additionally, it would aids firm’s management to develop strategies which are related with
products or services based upon customers expectation.
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