Strategic Marketing Report: Strategic Plan for Mark and Spencer

This report provides a comprehensive analysis of strategic marketing, focusing on the application of various frameworks and models to the retail giant, Mark and Spencer. The report begins with an introduction to strategic marketing, emphasizing its importance in achieving effective positioning and competitive advantage. It then delves into the external environment analysis using PESTLE and Porter's Five Forces models, assessing the political, economic, social, technological, legal, and environmental factors, as well as the competitive forces impacting Mark and Spencer. The internal competencies of the firm are evaluated, followed by the development of marketing objectives and a strategic marketing plan. The report also includes an examination of the marketing mix and concludes with a discussion of monitoring and control measures. The analysis aims to provide insights into how strategic marketing can be used to identify customer needs, enhance sales, and increase profitability for Mark and Spencer.

STRATEGIC
MARKETING

EXECUTIVE SUMMARY
The strategic marketing is the useful tool in identifying and analysing customer needs and
demands which will be useful in increasing the sales and profitability. In this report, PESTLE is
used which helped in determining the various forces of external environment which have a huge
impact on the organisations positioning. This also helps in designing various ways which will
help in dealing with these factors during tough times. Then porter's five forces model is done
which helped in determining a companies competitive environment which affects profitability. It
also helped me in analysing the corporate strategy of the firm which is useful in shaping
industry. Then SWOT is conducted which helped in analysing the weakness and threats of the
organisation and strength and opportunities which is important in the future growth and long
terms goals of the business. Then a strategic marketing development plan is made which is
useful in developing a plan through which the mission statement can be accomplished
successfully. It is a step by step plan which needs each step with clear justification so that goals
can be achieved. The marketing mix helped in analysing how product is to be reached to the final
consumer by using various strategies of product, price, place and promotion.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Introduction............................................................................................................................4
PESTLE and Porter's five forces model.................................................................................6
Appraisal of the internal competencies of the firm. ............................................................12
Appraise and evaluate the chosen organisation’s mission/vision and develop objectives...14
Strategic marketing plan of Mark and Spencer....................................................................14
A clear identification and assessment of ways in which organisation will monitor marketing
plan.......................................................................................................................................17
RECCOMENDATION..................................................................................................................18
CONCLUSION..............................................................................................................................19
REFRENCES.................................................................................................................................20

INTRODUCTION
Strategic marketing is the manner in which a firm effectively distinguishes itself from its
rival by capitalising on its strength to furnishes systematically better value to customers than its
competitors. Organisation undertaken in this report is Mark and Spencer which was founded in
1884 by Michael mark and Thomas Spencer in UK and deals in retail industry (Baker and Saren,
2016). The value of strategic marketing planning to the organisation in aiding the achievement of
effective positioning of the organisation with customer is very crucial from every organisations
point of view because customer satisfaction is the primary aim of every company. In this report
analysis and evaluation of PESTLE is done and also Porter's five forces model will be examined.
It further appraises the internal competencies of the firm in relation to the positioning. This will
also develop the marketing objectives which will enhance the positioning.
MAIN BODY
Introduction
Organisations implements strategic marketing strategies and plans to create and develop
plans which will be advantageous in reaching to the customers by identifying their potential
needs and demands and at the same time maximising the productivity and profitability. Mark and
Spencer in this context will use effective positioning in company which is the core of all
successful marketing principles. According to the primary generalization of marketing, goods
and services are created to satisfy the customers and enhances benefits (Baker, 2014). Thus, for
effective positioning, product must be committed to the expressed benefits that customer will
receive from a specific products, creates the expectations and offers solution to the customer
problems. Positioning must be a individual oriented concept, a defensive measure from which
everything in the company flows. In other words, positioning is the potency to influence
customer perception in regard to a particular brand or product related to the competitors.

Effective strategic marketing planning is crucial for accomplishing the objectives of positioning
in the company (Charter, 2017). It is building and planning a long term and forward looking
approach with a well defined plan for accomplishing business objectives. Importance or value of
strategic marketing in achieving effective positioning and objective are :
 Helpful in gaining competitive advantage : A well defined marketing plan will be
useful in selling propositions of the brands by comprising the characteristics and
advantages of a product offered by the Mark and Spencer in a creative, strategic and
planned way by outlining that how the brand and its products are better than their
competitors (West, Ford and Ibrahim, 2015). Thus, it helps the firm in gaining
competitive benefit with an edge over the current players and from the new entrants who
are trying to establish a brand.
 Brand recognition : Apart from the promotion of goods and services offered by the firm,
effective marketing strategy will be useful in making brand recognisable and helps Mark
and Spencer in attaining a remarkable feat in the target market and industry as a whole.
 Attract a new set of customers : The management of the Mark and Spencer will need to
understand the importance of strategic marketing in attracting new customers from
current markets and the markets which have not yet be targetted by the company
(Chernev, 2018). So this will help the company in analysing the taste, lifestyle, income
level, etc. to target customer and helps the sales department to make products according
to their preferences.
 Plans marketing budgets : Every department of the company require a definite set of
budgets on which they will work to meet day to day expenses. So, having a planned and
aligned strategic marketing gives assurance that the allocated budgets will be effectively
and efficiently used to fulfil goals and objectives. Thus, it enhances in planning
marketing budgets such that resources are used optimally and judiciously.
 Creative edge : Strategic marketing is useful in promotional and other marketing
activities which will get an edge of creativity as a brand guidance and the marketing
departments intermediate with the designs agencies, print partners, media planners, etc.
that devotedly understand the nature of the brand and its offerings and come up with a
unique and exclusive ideas which creates a creative edge for the brand and helps
developing a distinct entity in the market (Cwalina and et. al., 2015).

 Effective distribution plan : With the strategic marketing, organisation will have
effective distribution or delivery channel. For instance, Mark and Spencer by introducing
online shopping and growing impact of social media, needs to have wide network of
distribution like youth prefer to buy clothes online which saves time and money (Dodson,
2016). So with the strategic marketing, company will be able to align the needs with the
advanced technology and evolvement of needs of different customers.
PESTLE and Porter's five forces model
As mentioned, strategic marketing is very essential in positioning to effectively
accomplish the goals and objectives of Mark and Spencer. There are various factors in the
organisation which affects the operations and functioning of the company. These factors are
needed to be critically analysed by using PESTLE analysis. This stands for identifying political,
economic, social, technological, legal and environmental factors (Felix, Rauschnabel and
Hinsch, 2017).
In marketing, before implementing any plan or strategy, it is considered important to
conduct a situational analysis. PESTLE analysis is a tool for strategic business planning and it is
a framework for understanding external influences on business. It identifies important drivers for
change in the strategic environment. Following is analyses of various external environment
factors that will affect the positioning of Mark and Spencer with customers :
 Political factors: These factors examines the extent to which a government may
influence the economy or certain industry. It includes taxation policy, fiscal policy, trade
tariff, etc. These policies work directly by the government and they can only be changed
by them. As Mark and Spencer has become one of the largest and leading company in the
retail industry, new companies find it difficult to compete with it. Political stability and
Vat has a major impact on operations of the company (French and Gordon, 2015). If
government is not stable then policies will be kept on changing and organisation will be
affected by the fluctuations in the systems which can affect the buying behaviour of
customers. Apart from this if government raises the VAT, then Mark and Spencer will
have to increase their prices which can lead to reduction in income generation and
minimises sales due to high prices of products.
 Economic factors : These factors have significant impact on organisation's operation and
its profitability. They are regarded as determinant of an economy's performance that

directly affects the company. It includes factors like inflation, interest, recession,
economic trends, seasonality issues, import, export, etc. For instance, Mark and Spencer
focussed on maintaining higher quality which led it into the short term loses and
customers were attracted to quality with value. Also if inflation rate increases then the
prices of the products will also be increased and this will have adverse effect on
purchasing power of customers leading to changes in demand and supply models of the
economy (Gerritsen and van Olderen, 2014). Present economic scenario is favourable
with low to moderate interest rate which is sign of healthy economy.
 Social factors : These factors include the shared belief and attitude of population. It
investigates the social environment of the market and determinants like cultural trend,
demographics, etc. This is useful for marketer 's point of view as it helps in understanding
customer needs and wants (Strategy, 2014). For instance, Mark and Spencer has adapted
various changes in their company and operations according to the customers. As people's
preferences and tastes are changing with the changing environment, so Mark and Spencer
are modifying its clothing according to the customers. The sales in retail and space
acquired by it depends on locality and customer demographics. Like some shops located
in London does not keep the classic stock in their collection and offers limited collection
and autograph range to the customers.
 Technological factors : These factors are concerned with the rate of innovation and
advancement in technology that could affect the market or industry. This consist of
automation, innovation, research and the amount of technological awareness that market
posses. There is a tendency to focus on developments in digital technology, logistics,
manufacturing, etc. For instance, online shopping has enabled Mark and Spencer to
automate and accelerate purchases which minimises the supply cycle of goods sold
online. The company is investing heavily in technology to increase its efficiency.
Presently, the organisation equipped itself with free Wi-Fi with the intention that
customer will use this to explore and search other products which company offers. Apart
from this, customer assistants are given I -pads which is useful in helping customers by
giving them information regarding new products and services.
 Legal factors : These factors are concerned with various policies and laws that affects
the business environment in a particular country while there are set of certain policies

which company adopts to maintain its position in market. Mark and Spencer must
understand what is legally allowed within the territories in which they operate. They must
also be aware about any changes in the compliances and laws and its impact on business
environment. It includes various legislations, employment law, consumer protection law,
data protection law, etc. For instance, Mark and Spencer faced serious legal issues
relating to the protection of staff and members because they focussed on making profits
rather than protecting staff and customers from the danger of asbestos which is highly
heat resistant silicate mineral (Hajli, 2015). Apart from this, it also faced the issues of
making people work overtime and giving them half amount for the work done by them
and those who denied to do overtime, they were asked to leave the company and find new
jobs.
 Environmental factors : These factors have become crucial due to the accelerative
deficiency of raw materials, resources, increasing pollution, doing business as a ethical
and sustainable company, etc. Apart from this, majority of the customers are demanding
the ethically and sustainable sourced products. It includes regulations, use of renewable
source of energy, impact of adverse weather, etc. For instance, Mark and Spencer is one
of the most sustainable brands . They have launched an initiative known as “Plan A”
which aims to becoming world's largest sustainable retail industry. One of the program of
this Plan A is shopping which works with the idea that they will collect the donated
clothes from people and give to the Oxfam and this organisation will either recycle the
clothes or sold those clothes to another organisation who do not have enough money to
manufacture or produce (Shank and Lyberger, 2014).

Source : PESTLE Analysis. 2018
Porter's five forces model
This framework is based on competitive analyses which defines the intensity of
competition in any industry which is a mixture of five competitive factors in which business is
operating. This is useful tool or model for analysing and accurately diagnosing essential elements
in the market as well as evaluating the advantages and importance of each forces. There are five
forces namely industry rivalry, threat of entry, threat of substitute, bargaining power of suppliers
and bargaining power of buyer (Porter's Five Forces, 2018).
 Competitive rivalry : This means the intensity of competition among existing players in
the market. If there are greater number of competitors with the equal quantity of products
and services they offer then there will lesser power of the company. On the other hand
when competitive rivalry is low then the company will have greater power to attain
higher level of sales and profitability. As mark and Spencer operates in a retail sector
Illustration 1: PESTLE Analysis. 2018

which has a high level of competition so it has to face severe competition with other
firms in the industry which are TESCO, Sainsbury's, top shop, Zara, etc.
 Bargaining power of supplier: This force examines how easily suppliers can maximise
the price of goods and services. If there are less number of suppliers available than the
company will depend more on those suppliers and they will hold the power (Kotler and
Armstrong, 2015). In mark and Spencer, suppliers are powerful when they are
concentrated and organised, limited number of alternatives available in the market, high
switching cost, etc. Apart from this majority of the suppliers of M&S are in UK and they
bought their manufactured stock which is directly supplied from UK and so developed
the situation where supplier were reliant on the company and vice versa. Overall it can be
said that the power of the suppliers is moderate.
 Bargaining power of customers : This is concerned with the potentiality of customers to
minimise the prices. It is affected by how many customers the organisation has and how
significant each customer is. If the organisation has smaller customer base then more
power they will hold. The buyers will hold more power when only few buyer are
demanding more goods, purchased is made in bulk quantity, customers are price
conscious,etc. In M&S, customer are more demanding and this puts burden on the
company in terms of profitability. Company will follow consumer oriented strategy rather
than product oriented strategy because customers of UK does not want to pay high or
premium prices and wants high quality products at minimum price. Here also, the
bargaining power of the buyers is moderate.
 Threat of substitute : This is concerned about how easily customer can shift from the
organisation products to the competitors offerings. Threat of substitute is high when there
are various alternatives available, customers can easily find the same product at lower
price, quality of the products offered by competitors are betters, etc. For instance, Mark
and Spencer has high threat of substitutes because people prefer low prices products and
there are many retail organisation which offers the clothes at lower price by maintaining
quality in UK. The threat of substitute for Marks and Spencer is high as the available
number of substitutes for customers is very high with low or no switching costs to incur.
 Threat of new entrant : A company's power is also affected by the force of new entrant.
It will cost less time and money for a competitor to enter in a market and become an

effective competitor (Lidstone and MacLennan, 2017). This is high when capital needed
to start a business is low, low switching cost, when product id not well distinguished, etc.
It is difficult for M&S to have new entrant because to compete with this company, heavy
investment and capital requirements will be needed. M&S has a huge experience in this
industry from many years and they have various distribution and delivery channels and
loyalty of customers which enhances the competitive advantage. The threat of new
entrants is also high as the following business needs low cost and time to enter in the
market.
Source : Porter's Five Forces.2018
Recommendation
 The organisation should focus more on the prices because consumers are price conscious
and want to buy low prices goods. For this M&S should adopt various pricing strategies
like penetration strategy to increase its sales.
 As M&S faces issues related to employees security. It should follow employment laws in
the organisation which will ensure worker and customer's safety and security. This will
be useful in assuring that rights and interest of employees are protected and they will
work with full zeal and confidence for attaining organisational goals and objectives.
Illustration 2: Porter's Five Forces.2018