Marketing Audit Report: Analysis of Marks and Spencer (PJ1)

This report presents a comprehensive marketing audit of Marks and Spencer (M&S), a prominent UK-based retail company. The executive summary provides an overview of the company's background, established in 1884, and its diverse product range, including clothing, home goods, and food. The report delves into both macro and micro environmental analyses, utilizing PESTLE analysis to assess political, economic, socio-cultural, technological, legal, and environmental factors impacting M&S. Furthermore, it examines the company's micro-environment, including suppliers, distributors, customers, and competitors, providing insights into their relationships and impact on the business. A detailed competitive analysis compares M&S with competitors like Debenhams. The report concludes with a SWOT analysis, evaluating M&S's strengths, weaknesses, opportunities, and threats, offering a holistic view of its market position and strategic considerations. This analysis aims to assess M&S's current market situation and propose improvements for enhanced competitiveness and long-term sustainability.

PJ1- Marketing audit report

Executive summary
The report below is based on marketing audit through which capability to analyse and
interpret current market situation and its attentiveness is processed in favourable manner. In this
Marks and Spencer is taken that is a retailing company with working in diverse range of product
and service. The company is one of the leading companies of UK that specialized in selling
clothing, home products, food products. The company was established in 1884 by Michael
Marks and Thomas Spencer in Leeds. M&S currently has 959 stores all across UK of which 615
sell food products, it also offers online food delivery service through Ocado. For this both macro
and micro analysis is conducted that is beneficiary to examine market changes and all the
relative possibility with this better profit is achieved within stipulated period of instance. In this
competitive analysis is conduced that provide better analysis about strategies and its mapping
and through which current market competency is analysed in prior manner.

Table of Contents
Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................1
Company/ brand background...........................................................................................................1
Macro analysis.................................................................................................................................2
Micro analysis..................................................................................................................................4
Competitive analysis........................................................................................................................5
SWOT analysis................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing audit is required to perform by an organisation in order to analyse and measure
the appropriate modification and alteration that is preceded within an organisation to attain
higher competitive advantage and long term sustainability. It is a comprehensive approach with
this both internal and external market gets analysed extended goals, principles, market
opportunities and areas for development (Chernev, 2020). The report below is based on Marks
and Spencer that is a multinational retail company of British origin. The company’s
headquarters are in London, England; founded in 1884 the company is known for selling home
products, food products and clothing brands mostly of its own label. The report below comprises
of macro and micro analysis along with competitive analysis and SWOT analysis.
Company/ brand background
Marks and Spencer started in open market with a stall in Leeds, Yorkshire. At that time
company was known as Mark’s Penny Bazaar,run by Michael Marks only selling household
goods, haberdashery, toys, and sheet-music. Marks were a Jewish refugee from Poland when he
started the business his sign reads “Don’t ask the price-it’s a penny.” In 1894 Thomas Spencer
joined as a business partner. In 1903 the partners were allocated with stall number 11 and 12 in
the centre aisle. The company becomes first British retailer by making a pre-tax profit of over £1
billion in the year 1998. From past few years its clothing sales has decreased although the food
sales has risen after axing the St. Michael moniker for the brand. In May 2018 it was confirmed
that more than 100 stores will be shut by 2022. It’s not confirmed yet if some other stores would
close.
Simon who was Michael’s son took the business to a level ahead as he launched company’s
St. Michael brand name which stayed popular for a decade. He also transformed the business
from open market in northern England to number of indoor shops. In the year 1988 the parent
branch Marks and Spencer Group PLC bought U.S. oldest retailer clothing brand, Brooks
Brothers but later in 2001 sold that division. By the time company operated in more than 300
retail outlets in United Kingdom known as “Marks and Spencer” plus in dozens of other
countries, including France, Germany, Spain Hong Kong. Within a decade the number of United
Kingdom shop went to more than double to around 700. Currently the company has 959 stores in
UK of which 615 only sell food products. The company is offering online food delivery service
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through joint venture with Ocado. In the year 1998, the company made a pre-tax profit of £1
billion making it first British company to do so.
Macro analysis
PESTLE analysis which is sometimes also known as PEST analysis is the principle in
marketing. This principle is the concept used as a tool by the companies to find out their
operating environment or atmosphere they are planning to launch the new product, project,
services, etc. PESTLE is the acronym stands for Political, Economical, Socio-cultural,
Technological, Legal, Environmental analysis (Surya, Machfud and Simanjuntak, 2019). If we
talk about the Marks and Spencer which was founded in 1884 is a chain of household and
clothing products. The company operates retail outlets all over the world and is a very common
name in UK. As it appears to be a well established retail chain and it really is but recently
company announced the plan to change more than 100 stores worried about its future. Let’s see
the PESTLE analysis of Marks and Spencer to understand how company’s business works.
Political factors:
The political factors affecting company are, firstly free trade. This one is the most
effective aspect of modern day politics set among the multitude of different countries. Marks and
Spencer chiefly operates in United Kingdom but company has locations abroad also. So this
factor becomes a great help for them. Free trade help the company to import foreign products at
cheaper price which company put on sales and make a marginal profit. Although the United
Kingdom’s, decision to leave the European unit out of it might have affected this. Dubbed
Brexit, made a huge impact on business of company’s operation. Though, it is unclear that where
the UK will stand for the trade regulation and tariffs, but it seems like the outcomes are
unfavourable for the retailers. Suppose if UK leaves the Hard-Brexit, this will result in loss of
various free trade policies with European supplier causing higher product price for the
customers.
Economic factor:
The economic factor affecting Marks and Spencer is discount offered by the competitors.
As we know price is a forever factor in retail industry but UK has seen numerous retailers
offering great budget deals (CHEIKH and ALAOUI, 2019). From supermarket stores to clothing
brands all is in budget stealing the market share of premium brands like Marks and Spencer,
encouraging the customers to indulge in similar products at much lower prices. Even the decision
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made by Marks and Spencer in 1999 to use supply from other countries was probably influenced
by these discount competitors.
Socio-cultural factor:
The sociocultural factor affecting the company is the fact that the company is around
since 1800’s. It’s a household name in UK among every age group since ages, making them
think of it like a non trendy brand as the new brands come up every year in the market (Kim,
2019). These new and trendy brands make Marks and Spencer look like less trendy especially to
the youth. The other sociocultural factor which is an advantage for this company is ready to eat
meals. From past a decade the consumption of ready to eat meals has increased rapidly and this
field has become an opportunity for food stores. Using this perfectly Marks and Spencer is one
of top ten ready meal distributor of UK.
Technological factor:
The technological factor affecting the company is self checkout and online shopping.
Talking about self checkout which is trending in today’s retail market especially in food stores.
This trend is a relief for food store as it helps the retailer to save money and give the customer
experience of faster checkouts. The other trendy thing in retail market is online shopping trend.
As this trend grows day by day Marks and Spencer is already a established e commerce
company, which offers most of its products from clothing to foodstuff to home products. M&S is
taking the traditional approach with clothing items and delivering them to the buyers directly.
Although M&S doesn't deliver the food items like other food stores.
Legal factor:
The legal factor affected the company but company conduct training sessions
continuously in areas such as health and keep updates every single year about the laws and
legislation. The brand once accused for failing to protect its employees from risk of exposure to
asbestos. Also M&S store in Broad Street was renovating when ceiling tiles fell down containing
cancer causing material (Meagher, Wong and Zauner, 2020). As a result the company was
convicted for both the offenses and was finned around 500,000 pounds for each.
Environmental factor:
Environmental factors affecting Marks and Spencer are sustainability and fair trades. As
the company is maintaining image of luxury brand it has pledged to be more sustainable retailer
on every chance. Next is fair trade which was initiated to create compensate foreign producers
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has an impact on environment. The smaller producer receiving more benefits from fair trades
follow more norms as compare to the big companies.
Micro analysis
Micro-Environment
The marketing management of company works to attract customers and maintain good
relationship with them. Not only this it also try to understand the effect of micro-environment
that are supplier, distributor, customer, and competitors.
Supplier
Marks and Spencer maintained a long term partnerships with the suppliers that goes with
good relationship and reciprocal profits with supplier. The good relation with supplier is a
development that leads to huge influence on company (Chen and Yang, 2019). M&S values their
suppliers to continue the business otherwise suppliers might raise the cost of materials.
The nice reputation of M&S for supplier management but in case if supplier refuses to
supply the company can go to other suppliers. Because of this merit the company has unfailing
supply of material and this doesn’t leads to lack of products hence the customers loyalty and
satisfaction continues.
Distributor
M&S is the leading variety retailer in UK. The company has break basic marketing
structure from manufacturers to retailer and inspired others to do the same. This is an important
change from a retailers point of view. The new brands and products has been developed in past
ten years in UK and this market is moving so fast that many original and successful initiatives
are made by retailers not manufacturers.
Although M&S doesn’t check the stock on popular clothing, resulting to a situation
where customers can not buy the product they really want which needs to be improved.
Customers
For M&S a customer are most important aspect of consideration and knows that
customers are important for running the organization (Cahya, 2019). Every other company
should understand that consumer satisfaction is the most important element for a business even
important than product sale. M&S understood this earlier and provides best services and nice
quality products to customers for inclining the customers loyalty.
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M&S believes to continue the quality forever and tries to provide best services to
customers. The company has a reputation of good quality standards, and 30% of stores lines is
company’s own label.
Competitors
As we discussed M&S focuses its business on the quality and services and is known for it
among the customers. Tesco and Sainsbury are the leading competitors for M&S and
concentrates the business on service, quality, convenience and range. Competition among the
brands compels companies to make planning of competitors in the same market with the demand
to satisfy the consumers (Hanssens, 2018). Advantage that M&S has is that it is over one
hundred years in business with a well known brand name in market maintaining good supplier
relationship. Particularly M&S has its own market testing strategies and the company follows
their own practice of tight quality control. M&S has done great with quality and services,
however, its competitor not only make prominence about quality and services but also
established their stores worldwide. This is where M&S needs the improvement.
Competitive analysis
It is an analysis that is used to measure competitive benefit and for these working
standards of Marks and Spencer is measured and examine with comparison to Debenhams and it
is as brief explained below as:
Company Strategy Strengths Weaknesses Competitor
reaction
Mark
and
Spencer
Mark and Spencer are
the British
multinational retailer
that have
headquarters in
London, England that
have the
specialization in the
selling the cloth as
well as the home
products and the food
Marks and Spencer
have the strong free
cash flow that gives
the resources to the
company to expand
into the new project.
Apart from this
mark and Spencer
have the strong
record to develop
their new products
The supply chain
scalability is one
of the biggest
weaknesses of
the company
mark and
Spencer because
the company
have the poor
ability of the
supply chain.
The competitors’
reactions, as the
company
Debenhams is
following the
same strategy
like the M and
Spencer. As well
as the reaction of
their competitors
is very fast and
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products, mostly
(Baleanu and et. al.,
2019). Apart from
this M&S is choosing
its strategy, by
aligning their
advertisement
campaign with the
help of the digital
marketing and in the
store strategy. M&S
emphasize to provide
the common message
on every medium of
the communications.
M&S also use their
print, media and the
mobile ads and the
other social media
campaigns
into the product
innovation, as well
as M&S have the
successful track
record of integrating
the new marketing
strategy. The
company also
contain the strong
brand portfolio over
many years and also
highly successful at
go to the market
strategies for their
products.
Through this the
company has
been trying to
offer the global
products by the
help of online
store because
they are unable
to supply their
merchandise to
every location
across the world.
try to follow all
the marketing
terms that is
followed by
M&S.
Debenha
ms
The Debenhams is
the fast fashion e-
commerce brand. As
the uk department
store has been
launched a new fast
fashion range called
Kate Thomas, this
contains of just 20
pieces and every time
this will updated in
The Debenhams
sound the financial
performance is
almost up to the
mark as well as the
brand is little steady
in its strategic
progression, apart
from this the
company develops
its own channel
The Debenhams
is dipping in
their stores sales,
as well as getting
weak in their UK
market that will
adversely affect
the company
earnings and
profits. As well
as increasing the
The Debenhams
is facing is
strong
competitive
reaction because
in the recent days
Boohoo’s
purchased the
Debenhams.
After this there is
the speed of
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every three weeks. As
well as the success
strategy of fast and
fashion is the online
shopping of the
customer that also
means the high street
retailers
through the
partnership from the
various company
and also have the
strong digital
growth
cost of the
company that
leads to shutting
down of their
stores across the
world (Camilleri,
2018).
change in the
Retail but this is
proved that the
Debenhams the
strong gain of
UK is facing the
strong
competition
reaction now
days. This is the
reason the
company cannot
save its stores in
many of the
areas
SWOT analysis
The company is running more than 1463 stores across the world in today’s date. Employing
approximately 80000 people in 2020, the company announced to cut down 7000 jobs because of
covid-19 pandemic situation in august 2020. The net income of the company was 27.4 million
pounds from the annual revenue of 10181.9 million pounds. Let’s discuss the SWOT analysis of
M&S and understand the factors important for the company’s business.
Strengths of Marks and Spencer:
Well Experienced: The Company has the experience of 136 years to be in market. It is a
major multinational brand of UK operating across globe (Kukartsev and et. al., 2020). M&S has
done leading partnerships throughout the world making it lead its way in international market.
Recognized brand: Marks and Spencer has build up a reputation by providing quality
products to the consumers over the years. The people in UK prefer this brand and it is said to be
second-most popular supermarket brand in the UK.
Multinational Operation: The Company has 1463 offline stores across Europe, Middle
East and Asia. The 10000 plus stores are there in UK only. Adding to this M&S is also operating
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online. Having both physical stores and online services helped the company to operate
successfully across the world.
Variety of Products: Marks and Spencer offer a wide range of variety to its consumers.
M&S not only sold clothing, food products, furniture but also offering variety of vegetables from
last 40 years of 136 years. The company has maintained very good relation with the local
farmers and with their assist brings the fresh products to the customer (Kupec, 2018). The
company has 800 such stores in 44 countries worldwide and is offering around 500 varieties of
vegetables, fruits and salad. M&S is one of a kind company to provide such service.
Weakness of Marks and Spencer:
Decrease in Sales: Because of poor supply system and non availability of products the
sale in some of stores was declining in 2019. This made the bad impact and damages the value of
company.
Public’s Perception: There is a perception among the public that M&S doesn’t offer
clothes to young and teenagers. Many people think that company provide clothing to old people
only which coast a lot to company.
Opportunities for Marks and Spencer:
Segmentation: M&S follows the Market segmentation policy to open various stores all
across. In this policy the products are offered based on the demand of customers. So
management and maintenance cost is lower and increases the profit of company.
Online Stores: M&S has online stores but needs to do advancement in the same. Online
retail is something on which company needs to improve a lot as it’s far behind the major e
commerce retailer.
Threats to Marks and Spencer:
High competition: The retail market is becoming competitive day by day across the
globe. The company needs the strong strategy as the other brands are raising and
internationalizing. The company’s brand graph is declining and its stores are closing in UK,
France and China.
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CONCLUSION
It has been concluded from the above report that marketing audit aid the business to
measure its strength and working competency with this ability to make profitable and excessive
changes is processed in timely frame. In this company get analyse its macro as well as micro
analysis through which both internal as well as external environment consequences is analysed in
beneficial manner. Furthermore, in support of this capability to induce higher competitive
advantage with better sustainability is persist with this ability to achieve profitable adequateness
and performance is enhanced in better manner.
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REFERENCES
Books and Journals
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Cahya, A.D., 2019. Marketing Audit: Does It Affect Marketing Planning and Marketing
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Review, 1(2), pp.93-100.
Camilleri, M.A., 2018. Strategic planning and the marketing effectiveness audit. In Travel
marketing, tourism economics and the airline product (pp. 117-135). Springer, Cham.
CHEIKH, B.I. and ALAOUI, L.L., 2019. MARKETING AUDIT A METHOD OF A
CONDUCT EVALUATION OF THE MARKETING STRATEGY AND THE
BUSINESS PERFORMANCE. Revue Internationale du Marketing et Management
Stratégique, 1(4).
Chen, H.C. and Yang, C.H., 2019. Applying a multiple criteria decision-making approach to
establishing green marketing audit criteria. Journal of cleaner production, 210, pp.256-
265.
Chernev, A., 2020. The marketing plan handbook. Cerebellum Press.
Hanssens, D.M., 2018. Market response, competitive behavior, and time-series analysis.
In LONG-TERM IMPACT OF MARKETING: A Compendium (pp. 1-40).
Kim, J.B., 2019. Competitive Analysis among Multi-product Firms. Asia Marketing
Journal, 21(3), pp.47-64.
Kukartsev, V.V. and et. al., 2020. Features of evaluating the effectiveness of industrial enterprise
marketing activities. In IOP Conference Series: Materials Science and
Engineering (Vol. 734, No. 1, p. 012081). IOP Publishing.
Kupec, V., 2018. Risk audit of marketing communication.
Meagher, K.J., Wong, A. and Zauner, K.G., 2020. A competitive analysis of fail fast: Shakeout
and uncertainty about consumer tastes. Journal of Economic Behavior &
Organization, 177, pp.589-600.
Surya, M., Machfud, M. and Simanjuntak, M., 2019. MARKETING AUDIT OF
EDUCATIONAL SERVICE COMPANY. Jurnal Aplikasi Manajemen, 17(4), pp.677-
687.
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