Strategic Marketing: M&S Bulgaria Market Entry Analysis Report

This report, prepared for Ashanti Marketing Solutions (AMS) Limited, analyzes Mark & Spencer's (M&S) strategic entry into the Bulgarian clothing market. It begins with an executive summary highlighting the importance of strategic planning in the current economic climate. The introduction outlines the report's objectives, which include analyzing internal and external business factors using PESTLE analysis, evaluating market entry modes (FDI, Merger), and assessing market segmentation. The report recommends Bulgaria-Sofia due to its potential benefits. The PESTLE analysis evaluates political, economic, social, technological, legal, and environmental factors, identifying opportunities and threats. The report then assesses three market entry modes, recommending the most appropriate strategy with justification. The report analyzes the target market through market segmentation and targeting, considering the high cost of clothing in Bulgaria. The report concludes by providing a strategic marketing plan for M&S to succeed in Bulgaria.

RUNNING HEAD: Strategic Marketing 0
Mark and Spenser Plc
Mark and Spenser Plc
Business Function Analysis
Name of the Student
University Name

Strategic Marketing 1
Executive summery
With the ramified economic conditions and complex business structure, each and every
organization needs to undertake proper strategic program to win over the market. There are
several strategic planning management such as market development, product development and
diversification strategy which could be undertaken by company to win over the market. It is
analyzed that if company wants to win over the market then it will have to implement the proper
strategic program to mitigate the possible business issues. In this report, Mark and Spenser
Company has been selected which will indulged in the product development and market
development strategic program to win over the market. It is analyzed that if company uses the
proper strategic program then it will not only increase the overall turnover but also strengthen the
international brand image of company. The cost leadership and product differentiation strategy
will be the base for the Mark and Spenser to win over the Bulgaria market with its extensive
clothes product offering.

Strategic Marketing 2
Introduction
Business is accompanied with the several set of activities in which various functions are
undertaken to achieve the certain goals and objectives. In this report, various strategic planning
and internal business factors analysis have been undertaken to undertake the business
development strategy. This report divulges how Mark and Spenser will introduce the new
clothing business in Bulgaria market. However, the main challenging part for the Mark and
Spenser would be to lower down the cost of its clothes product offering in market. Company
needs to undertake the proper cost leadership strategy program to win over the market and
strengthen the overall brand image on international level. Company needs to focuses on strategic
alliance which it could take to strengthen the market share in Bulgaria- Sofia determined
approach.
Objective of report
The main objective of this report is to analysis the internal and external business factors
of the Mark and Spenser when it will start up its new clothing business in Bulgaria- Sofia.
This report will cover the all the external factors analysis which would be evaluated by
using the PESTLE tool analysis. After that the assessment of the three modes of the market entry
will be determined on the basis of suitability and associated factors of the Mark and Spenser.
Afterward, the market segmentation strategic program will be analyzed to evaluate the critical
market condition and customization of the products and clothes offered in market. In addition to
this, portal five forces analysis tool will be used to assess the comparative position of the Mark
and Spenser Company in the Bulgaria- Sofia market. However, the main thing which needs to be
covered in strategic program of company is based on the fact that people in Bulgaria- Sofia are
facing the issues of the high price of the clothing products (Monastiriotis, and Alegria, 2011).
Selection of the country
The main reason of selecting the Bulgaria-Sofia is related with its potential benefits
outcomes which Mark and Spenser could have if it sets up its new clothing business in this

Strategic Marketing 3
country. However, increased GDP rate and purchasing power of the clients will increase the
viability of setting up new clothing business in Bulgaria-Sofia.
PESTLE analysis
This PESTLE analysis focuses on assessment of the political, social, environment,
technological, legal and economic factors of the Bulgaria-Sofia which will be undertaken to
introduce new clothing products in market by Mark and Spenser Company. However, in order to
analysis all of these factors below table will be used.
PESTLE points Factors Opportunity or threat Reason and comment
Political factors (This
factor is accompanied
with the government
stability; related
legislative framework;
adopted tax
regulation; trade
restrictions; and
corruption levels;
bureaucracy issues
and implemented
stability of neighbors
(Brink, 2017).
The internet and
service program
implemented
European council
program have been
strengthen in
Bulgaria-Sofia. The
high stability and less
restricted trade policy
program will divulge
the positive part for
setting up the business
(Bettis, et al. 2016).
The less restricted
policies and
international trade
busienss outlook will
showcase good
business opportunity
to Mark and Spenser
Company.
Nonetheless, the new
strategic program and
market development
in Bulgaria- Sofia will
require company to
enter into joint
venture and strategic
alliance with other
organization (Atkin,
Faber, and Gonzalez-
The main reason of
these less restricted
political factors of the
Bulgaria-Sofia is
related to government
strategy to increase
the Foreign direct
investment of
company. It is
observed that
increased FDI is very
much required for the
developing the GDP
of the country. Mark
and Spenser could use
these positive factors
to start up new
clothing busienss in

Strategic Marketing 4
Navarro, 2018). Bulgaria-Sofia.
Environmental The
geographical location,
regulation on the
disposal of the waste
energy efficiency and
people's attitude
towards the
environment is very
strict in in Bulgaria-
Sofia. The
government of the in
Bulgaria- Sofia and
environment and
protection act has
resulted to the
stronger regulatory
compliance which
need to be followed
by Mark and Spenser
while starting up new
business in Bulgaria-
Sofia (Strat,
Davidescu, and Paul,
2015).
These will result high
amount of threat for
the in company to
start up new clothing
business in in
Bulgaria- Sofia. Mark
and Spenser will have
to establish the proper
regulatory compliance
environment
protection department
in its business process
to win over the
market.
The main reason of
this strengthens
environmental
protection of
Bulgaria- Sofia is
related with the
negative impact of the
business on the
society and
environment. If
company does not
control the negative
impact of its busienss
then it will impact the
sustainability of the
resources in Bulgaria-
Sofia.
Social This social factor is
accompanied with the
value, belief, culture
The main challenge
for the Mark and
Spenser in Bulgaria-
It is analyzed that if
company uses the
proper online

Strategic Marketing 5
and perception of the
people who lives in
Bulgaria- Sofia. Mark
and Spenser needs to
customize its clothing
products as per the
needs and demand of
the clients in
Bulgaria- Sofia.
However, it will
require setting up
proper quality control
mechanism (Hill,
Jones, and Schilling,
2014). People in
Bulgaria- Sofia wants
to buy comfortable
and quality fabric
clothes.
Sofia will be to
competing the quality
of clothes offered by
the existing business
organization. People
in Bulgaria- Sofia are
more inclined towards
best quality stuff and
fabrics in their clothes
(Peeva, 2018).
It may be hard for the
Mark and Spenser to
import the quality
cloths to sell in
Bulgaria- Sofia due to
high legal compliance
and laws.
The main opportunity
would be to use the
online search engine
to book the orders
from the clients in
Bulgaria- Sofia.
mechanism then it
could easily
customize its clothing
products as per the
quality standards and
cloth fabric
requirement.
The main reason is
related to less
availability of human
resources and quality
fabrics.
Economical The economic factor
in Bulgaria- Sofia is
accompanied with the
inflation; taxes and
duties; exchange
Inflation rate in
Bulgaria- Sofia is
showing 2.6% in
April, 2017. The cost
of living of the people
The economic factors
shows the high
economic growth of
Bulgaria- Sofia
which could be used

Strategic Marketing 6
rates; employment
and unemployment;
finance and credit;
cost of living, balance
of trade and
increased Trade
balance.
in Bulgaria- Sofia is
average but people are
inclined towards
buying quality
products (Bulgaria
Inflation Rate, 2018).
The interest rate of
Bulgaria is already
too low i.e. 1.05%
which shows good
amount of money
flow in the economy.
to set up the price of
the clothes products
offered in Bulgaria-
Sofia (Geppert,
Williams, and
Wortmann, 2015).
Legal factors There are several
rules and regulation
such as employment
act, Child labour act,
Workman
compensation act and
legal analytical factors
which needs to be
complied by the Mark
and Spenser while
starting up new
clothing business in
Bulgaria- Sofia.
The main law which
might impact Mark
and Spenser is
Workmen
Mark and Spenser
needs to enter into
strategic alliance with
the existing firm legal
department and set up
the strong legal
framework which will
assist company to
carry out the legal
compliance program.
Company needs to
measure the proper
legal frameworks and
starting up new
busienss in Bulgaria-
Sofia will also be
done by entering into
strategic alliance with
the existing legal
company.

Strategic Marketing 7
Compensation act.
Technological With the ramified
economic growth,
companies in
Bulgaria- Sofia have
adopted new
technologies and
system process which
will be required to add
values to the busienss
(Klimek, and Hansen,
2017).
The new technology
which is used in
Bulgaria- Sofia is
related to online cyber
computing system
which is used by other
rivals to increase the
awareness of offered
clothes in Bulgaria-
Sofia.
Mark and Spenser
needs to develop
online dashboard
mechanism for the
business operations of
Bulgaria- Sofia
(Kaltenborn, et al.
2017).
It would be
opportunity for Mark
and Spenser as it has
already strong IT
expert team in its
business.
Using of Cyber
Computing system
and online dashboard
will assist Mark and
Spenser to grab the
client online. It will
strengthen the
automation work
system in its value
chain activities
(Iacovone, et al.
2009).
Market-Entry options
With the increasing economic growth, Mark and Spenser Company could easily achieve the
tremendous growth in the business by entering into the new market of Bulgaria- Sofia.

Strategic Marketing 8
Nonetheless, starting up new busienss in Bulgaria- Sofia may be tough for Mark and Spenser as
it will have to face several complexities such as increased competition, tough regulatory
compliance, and loss of business and arrangement of finance. Mark and Spenser could follow the
several strategic process programs to enter into the new busienss cycle in Bulgaria- Sofia
(Lechman, and Marszk, 2015).
Foreign direct investment
It is the process to invest in the particular entity in the form of the controlling ownership
in the business in a particular country. This is the direct working investment method to tap the
international market (Liboni, et al. 2015). Mark and Spenser could use this process market entry
option to start up its new cloth business in Bulgaria- Sofia. However, it will be hard for the Mark
and Spenser to comply with the all the applicable rules and regulations to remitted the capital in
the particular market. It is further observed that FDI in Bulgaria- Sofia is not easy done as
company will have to face high penalties and complexity in its remittance process which will
increase the overall cost of setting up new busienss in Bulgaria- Sofia (McCay, et al, 2014). The
foreign direct investment is the process to remit money in the particular country. Mark and
Spenser could have its FDI once it set up its business in Bulgaria- Sofia. It could be explained as
process to invest capital in particular country to start up new business.
Merger
Merger is an agreement that combines two companies or entities into one new company. Mark
and Spenser is the well established brand which could easily tie up with other organization. The
merger process is highly recommended as it will give positive outcome such as captured market
share, increased awareness of the market and use of existing marketing strategy. It is analyzed
that if Mark and Spenser should tap the Bulgaria- Sofia market with its clothing products then it
will first has to identify the possible companies in the market (Weisman, 2014). There are
several existing business companies which are indulged in selling the clothes through their
online and retail stores such as Mony-An Ltd, Label group Ltd, Texx Team and New Grace.
These companies have already set up strong brand image in Bulgaria- Sofia. However, Mark and
Spenser should undertake the online dashboard mechanism program to grab potential clients for

Strategic Marketing 9
its business. It will have to undertake the strategic alliance with the tech companies (McCay, et
al. 2014).
Advantage Disadvantage
Creation of synergy in business High amount of capital outflow
Easy tapping the market. Distribution of ownership
Increase in the overall turnover Increased cost of capital
Joint venture
It is another method to set up the strategic relation with the company. Ideally, this mode is
accepted when company has to comply with the strengthen rule sand regulation of the country. In
Bulgaria- Sofia, there are several existing company which could be undertaken by the Mark and
Spenser to set up the joint venture to gain the pertinent information about the market.
Advantage Disadvantage
Helps busienss to grow faster Loss of business process functions
Helps in generating higher profit Creation of new management department.
Easy access to new markets and strong legal
compliance program
High cost of capital for setting up new
distribution networks.

Strategic Marketing 10
Strategic alliance
There are several other strategic alliances which could be used by Mark and Spenser Company to
tap the new market of Bulgaria- Sofia (Chatterjee, 2017). However, Clothing business in
Bulgaria- Sofia will require company to arrange the retails stores and creation of franchises with
the other retail stores so that they could sell the clothes offered by Mark and Spenser Company
in the market. It is the method of tapping the clothing market of Bulgaria- Sofia in easy and
determined approach (Morais, 2016).
Chosen method for starting up new busienss in Bulgaria-Sofia
The main chosen method for starting up new busienss in Bulgaria-Sofia by Mark and
Spenser is related to its associate benefits and complexity. The model of Franchise will be
accepted by Mark and Spenser for setting up new business in Bulgaria-Sofia (Eloranta, and
Turunen, 2015). It is observed that Mark and Spenser needs to firstly adapt with the existing
culture of the business in Bulgaria-Sofia. After that, the process adopted functions will be taken
by the company to start up new business. In addition to this, customization of the clothing
products and maintaining the healthy relation with the clients could be possible when the local
people who are efficient in their sales activities sales the cloths offered by Mark and Spenser
(Parnell, 2016).
Market Segmentation
It is analyzed that market segment is the process to divide the broad consumers or business
market by using the groups and sub groups. The potential customers are divided on the basis of
age, sex income and their purchasing power. However, this market segmentation strategy assists
in implementing the group mapping strategy program to introduce new products and services in
market (De Haas, Herold, and Schaefer, 2017). It is the process to segment the market in
different work process. The basis of market segmentation depends upon the five several ways in
which market could be segmented (Preiato, Brown,.andTarca, 2015).
The concept of targeting is to make the product more customized and client oriented which will
add value to the client’s satisfaction.

Strategic Marketing 11
Geographic- It is the process to mark the particular market on the basis of the place where people
lives and located. It will assist in finding the potential customer through the door to door market
survey. It will assist Mark and Spenser to set up its retail stores in well-known malls and place in
Bulgaria- Sofia. This geographic factor focuses on the people who visits the malls and stations.
Demographic- It is analyzed that Mark and Spenser needs to focus on the females more as
compared to male customers. However, the potential clients of the company will be female and
male who fall under the age group of 14 to 45 years (Rickertsen, Gustavsen, and Nayga Jr,
2017). Mark and Spenser should focus on the students and females for its newly offered clothes.
Psycho-graphic- It divulges the ways client’s react and buying behavior. The price and quality of
the products offering by the Mark and Spenser is based on this marketing strategic program
(Dimic, Orlov, and Piljak, 2015). It will help Company to customized its clothes as per clients
need.
Behavioral- It shows the economic and social intents of the clients. Mark and Spenser could keep
the price of its offered clothes high in Bulgaria- Sofia as people in this country are already
having high purchasing power (Rodríguez, Gómez, and Ramírez, 2015).
Potential target customers
The potential target customers of Mark and Spenser would be male and female who falls under
age group of 14 to 45 years. Nonetheless, people having EURO 300 monthly salary will be easy
target customers who will buy the clothes offered by Mark and Spenser (Rosado-Serrano, 2017).
Porter’s generic strategy
It is analyzed that in order to implement the proper strategic program, company needs to
understand he market and other competitors in the market (Schwab, 2010). There are main four
porter’s generic strategies which could be used by Mark and Spenser to tap new Bulgaria- Sofia.

Strategic Marketing 12
Cost leadership
It is analyzed that competition in the retail clothing business in Bulgaria-Sofia is too high.
There are several firms who are already having strong brand image and offering high quality of
cloths in market through their online and retail stores such as Mony-An Ltd, Label group Ltd,
Texx Team and New Grace. These companies have already set up strong brand image in
Bulgaria- Sofia. Mark and Spenser needs to use its cost leadership strategy to win over the
market (Solberg, Terragni, and Granheim, 2016). It is analyzed that new entrants in the market is
too high. However, setting up of the strategic alliance and indulged in setting up of new factory
in the busienss will lower down the penalties and cost of business as well.
Cost focus
It will allow Company to lower down its cost of its fashion products in market (Porter
five force analysis, 2018). It is analyzed that people in Bulgaria-Sofia are only inclined towards
the cloths which are high in quality and less in cost. Nonetheless, due to the high return on
capital employed of the clothing business, many new entrants are tapping this market with their
advance technologies and innovative strategies (Zentes, Morschett, and Schramm-Klein, 2017).
Differentiation
In this strategy, Mark and Spenser would seek to be unique in its industry along some
dimensions. The buying power in clothing business in Bulgaria-Sofia is too high due to the less
demand and increased competition. Mark and Spenser needs to create differentiation strategy if
it wants to win over the market. If the bargaining power is high then it is seen that industry
profits will be low (Porter, and Heppelmann, 2014.). The main substitutes of clothing products

Strategic Marketing 13
offered by Mark and Spenser are stitched clothes. Nonetheless, with the changing client’s needs
people are inclined towards buying only customized readymade clothes (Voigt, Buliga,and
Michl,., 2017).
Focus Strategy
It is analyzed that Mark and Spenser should focuses on the power of buyers to use the
cost leadership and product differentiation strategy. There are high numbers of suppliers in the
market who are providing good raw material. Nonetheless, Mark and Spenser could sell its
clothes imported from the origin factory which will result to no strategic alliance with the
suppliers (van Rompay, Deterink,. andFenko, 2016). Mark and Spenser should focuses on using
the cost leadership and product differentiation strategy.
Conclusion
Mark and Spenser Company could only win over the market when it could give attractive
offers and keeping the price of cloths low while maintaining the same and above quality of the
cloths as compared to the existing offered cloths. Mark and Spenser needs to focus on creating
cost leadership and product differentiation strategy if it wants to win over the Bulgaria market.
Now in the end, it could be inferred that Mark and Spenser should start up its clothing busienss
in Bulgaria-Sofia. It is analyzed that company should adopt advance technologies and work
system process to maintain effective work functions. The customization of the clothing products
and leading the Bulgaria-Sofia market through the cost leadership strategy will be the core factor
for the business success. Mark and Spenser needs to maintain the effective organization culture
which will attract more clients in market and hiring of expert employees will assist in winning
over the market. The clients in Bulgaria-Sofia are inclined towards buying high quality of the
clothes irrespective of the fact of price charged by the organization.

Strategic Marketing 14
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