Marketing Analysis Report: Marks & Spencer (M&S) UK Retail Strategy

This report provides a comprehensive marketing analysis of Marks and Spencer (M&S), a prominent UK High Street retailer. It applies theoretical marketing principles, including PRESTCOM and SWOT analyses, to assess the company's business situation and current market environment. The PRESTCOM analysis examines political, regulatory, economic, social, technological, competitive, organizational, and market factors influencing M&S. The SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. Key competitive, organizational, and market factors are highlighted to understand M&S's position in the UK retail sector, considering competition, internal capabilities, and evolving consumer preferences. The analysis concludes that M&S must focus on customer needs to maintain profitability in a competitive market.

Marketing Analysis
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Contents
Introduction......................................................................................................................................3
Theoretical principle of marketing..................................................................................................3
PRESTCOM analysis..................................................................................................................4
SWOT analysis............................................................................................................................7
Suitable factors................................................................................................................................9
Current market environment........................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
This report focuses on the market analysis of a selected UK High Street retailer, i.e. Marks and
Spencer. The report applies the theoretical principle of marketing to analyze the situation of the
business. In this manner, PRESTCOM analysis and SWOT analysis is done, and the most
appropriate factors of both the analyses are selected. The report basically analyzes the current
marketing environment of the selected retailer. Marks and Spencer (M&S) is one the largest and
best known retailer in the UK which is famous for quality, value and reliability of the products.
In addition to this, the company is also considered due to its core values, i.e. worldwide services,
quality and values.
Theoretical principle of marketing
In order to analyse the business situation of M&S, it is important to apply the theoretical
principle for the company. The purpose of using theoretical principles of marketing is to gain a
realistic appraisal of the company and understand the environment in which the company is
operating. In this manner, two of the theoretical approaches, i.e. SWOT analysis and
PRESTCOM analysis are used in the context of the company (Hooley et al., 2012).
While analysing the business situation of the company, it is essential to evaluate and analyse the
conditions of the market in which the company is operating. In this manner, an effective
marketing tool PRESTCOM analysis can be used. PRESTCOM stands for political, regulatory,
economic, social, technological, competitors, organizational and market. In addition to this,
SWOT analysis is also helpful for identifying the strengths and weaknesses of the company and
opportunities and threats in the market. Basically, SWOT analysis can identify profitable
opportunities and high-risk threats to enhance the business effectiveness of the company (Fifield,
2012).
PRESTCOM analysis
Political Factors
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In the UK, the government has set the rules of the companies related to hazard identification, risk
control and risk assessment. M&S has to follow these regulations to operate the business in a
successful manner. Further, free trade agreements have enabled the company to source products
from other countries at cheaper rates. The fluctuations in local currency can sometimes impact
on the demands of the consumers. Further, the government of the UK is stable and implementing
green measures legislation to promote the companies.
Regulatory Factors
In the UK, there are regulations and legislation related to health and safety, consumer rights,
antitrust, and various legal factors that impact the business operations of M&S in the country.
The company is required to ensure that it does not obstruct any rule and law in the home and
global market. In addition to this, there are regulations governing the production, packaging and
distribution of the products along with employee safety and consumer protection.
Economic Factors
The business operation of M&S was affected by the recession in the UK. Now, the country is
recovering slowly from the global recession which is beneficial for the company to earn more
profit. There were some microeconomic issues and currency fluctuations that change the demand
of the customers and impact on the profitability of the company.
Social Factors
In the country, different generations always bring shifts in the buying behaviour of the
consumers. Those shifts are also created on the basis of channels and technology used by the
company. The consumer preferences for fashion products and the quality of the products are the
factors affecting the business operation of M&S (Mai, 2014).
Technological Factors
The UK is technologically advanced which provide benefits to the company to operate the
business. In the country, the number of customers shopping online is increasing continuously. In
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addition to this, customers are becoming more technologically savvy in the UK which is
beneficial for the company.
Competitive Factors
In the UK, there are various clothing retail companies which are targeting the customers by
providing the products at lower prices. There are many retail companies in the UK, i.e. H&M,
Zara, Uniqlo and GAP that are also offering quality products with effective marketing strategies
to attract the customers.
Organizational Factors
In terms of organizational factors, the company has hardworking and friendly staff. Knowledge
management is handled in the right manner in the company by a top-down management
structure. The company is creating competencies by adding all resources and developing value-
added practices in business. Due to innovation and technology, the company is able to attract a
large base of customers in the UK market who are ready to pay for the quality products
(Ramaseshan et al., 2013).
Market Factors
Although, M&S is famous among the customers due to quality products there are some market
forces that impact the business operations of the company. One of them is threats of substitute
products. In the clothing retail sector, the number of retailers is increasing continuously.
Consumers are always ready to pay for quality products. Competitors in this manner are more
customers oriented and fulfilling the demands of the customers (Wilson & Gilligan, 2012).
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SWOT analysis
M&S is popular retail clothing and accessories of the UK. The company has its presence in a
wide range of products, i.e. casual wear, formal wear, party wear, footwear and a wide range of
accessories. The SWOT analysis of Marks and Spencer is as follows:
Strengths
Strengths of the company can be described as what the business is doing best in the business to
achieve competitive advantage over the rivals. The strengths of M&S are discussed below:
Innovations- M&S is the market leader in the retail sector due to the spirit of innovation. The
innovation done by M&S is equivalent to creativity and communication. The employees of the
company are encouraged to suggest best ideas whenever required which enhances the level of
innovation in the business.
Diversity- In the company, there are around 80,000 employees who are working in all over the
world. The company is focused on encouraging diversity, so it has people from all religions,
genders and ethnicities.
Multichannel presence- The company has both online and offline presence among the
customers. In addition to this, the company is also providing franchising operations. The
company is operating 300 full-line stores, 910 stores in UK and 310 franchised food stores.
Weaknesses
Some of the weaknesses in the business operations of M&S are discussed below:
Low level of customer satisfaction- The customers of Marks and Spencer sometimes show low
satisfaction level. The reason is that there are issues related to the return policy along with in-
store experience. This has created poor brand loyalty and increased brand switching by the
customers.
Inability to penetrate- The Company has its presence in the UK, US and Europe. The company
has also opened its stores In the Middle East and Asia, but it was not successful in targeting the
customers due to western designs.
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Opportunities
For M&S, opportunities can be described as the avenues by which the company can increase its
revenues in the business.
New Segments- Fashion is a continuous business in which new segments come on a regular
basis. In the market, there is a huge demand for traditional fashion clothing products and
accessories. In this area, the company can focus to target the customers.
Threats
One of the big threats for M&S is competition in the operating market. There are many
established players that create strong competition for the company in the market. Some of the
strong competitors are Uniqlo, GAP, Zara, and United Colors of Benetton.
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Suitable factors
Based on the overall discussion, it is clear that there are various factors that impact the business
operations of Marks and Spencer in the UK market. The company is required to focus on the
environmental factors to achieve a competitive advantage over the rivals. Three factors from the
above discussion are competitive, organizational and market factors (Payne et al., 2017).
Current market environment
Based on the analysis of selected factors, current market environment of M&S in the UK can be
analysed. The discussion of three selected factors is as follows:
Competitive factors- In the UK, the company is facing strong competition due to the presence
of established retail companies. In order to deal with the competition, M&S is focused on more
aggressive promotional strategies and sales promotions. The company has also adopted a
competitive pricing strategy to deal with strong competitors like Zara and GAP.
Organizational factors- M&S is a powerful brand which is known for high-quality products and
strong relationships with suppliers. The company has a set of core competencies that provide a
competitive advantage to the business. In addition to this, the company has around 80,000
employees who are working in all over the world. This makes the company powerful in the retail
sector (Lim et al., 2015).
Market factors- In the retail market, there is high competition due to low-cost, high fashion
companies. In addition to this, there is a high sale of substitution products in the market which
impacts the profitability of M&S. With this, the growing use of the internet is making the
customers better informed regarding the product. So, the company is required to identify the
needs of the customers for getting more profit.
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Conclusion
Based on the overall analysis, it is clear that it is essential to evaluate and analyse the conditions
of the market in which the company is operating. M&S is popular retail clothing and accessories
of the UK. The company has its presence in a wide range of products, i.e. casual wear, formal
wear, party wear, footwear and a wide range of accessories. The company has a set of core
competencies that provide a competitive advantage to the business. The company is required to
identify the needs of the customers for getting more profit.
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References
 Fifield, P., 2012. Marketing strategy (2nd edition), Berlin: Reed educational & Publishing
Pvt Ltd.
 Hooley, G., Piercy, N., & Nicoulaud, B., 2012. Marketing Strategy and Competitive
Positioning. (5th). Essex: Pearson Education.
 Lim, M., Machado, J. and Iglesias, O., 2015. Brand, identity and corporate reputation.
Marketing Intelligence & Plan, 33(2).
 Mai, L., 2014. Consumers' willingness to pay for ethical attributes. Marketing
Intelligence & Plan, 32(6), pp.706-721.
 Payne, A., Frow, P., & Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science, 45(4), 467-489.
 Ramaseshan, B., Ishak, A. and Rabbanee, F., 2013.The role of marketing managers'
commitment to and involvement in marketing strategy implementation. Journal of
Strategic Marketing, 21(6), pp.465-483.
 Wilson, R. M., & Gilligan, C., 2012. Strategic marketing management. Routledge.
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