Marketing Report: Analyzing M&S Performance and Strategies

This report provides a comprehensive marketing analysis of Mark & Spencer (M&S), a British multinational company. The report begins with an introduction to marketing and its key components, followed by a detailed marketing audit of M&S, including an examination of its internal and external environments using SWOT and PESTLE analyses. The Ansoff matrix is utilized to evaluate growth strategies. The report then delves into market segmentation, discussing demographic, psychographic, geographic, and behavioral segmentation approaches. The report focuses on demographic and psychographic segmentation to understand customer behavior. The report suggests that M&S should focus on demographic and psychographic segmentation. Overall, the report aims to evaluate the current marketing strategies of M&S and provide insights for future improvements.

Introduction to
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Marketing audit to analyse current performance of business......................................................1
Research on Market segmentation..............................................................................................5
Analyse current marketing strategy and to meet requirement of suggested segment.................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is related to those process which is adopted by a company to promotes its
products and services in order to attract a large number of customers. There are various factors
which are included in the marketing like advertising, selling, and to deliver the products to
customers. These all the activities is adopted by the company for increasing their customer
relationship as well as their brand value. This file is based on the Mark & Spencer which is a
Britain based multinational company, its headquarters are situated in the Westminster, London,
UK. M&S is leading in the a range of products such as quality clothing, home products, and food
products. This report will cover the marketing audit of business so that the current performance,
current marketing strategies and position of the business can be identify. Moreover, two sets of
market segmentation are described to run business smoothly and effectively. At the end,
understanding of buying behaviour of customers and research to determine suitable marketing
strategy is described.
MAIN BODY
Marketing audit to analyse current performance of business
Marketing audit is used by the organisations for identifying, evaluating, and interpreting
the business marketing environment(Krishna and Schwarz, 2014). It is very helpful tool for the
organisations as it helps to know about the internal and external factors of the organisation. Also,
it described about the goals, strategies, and principles so that they able to understand the issues
and opportunities in their business strategies and plans so they able to enhance their marketing
position and performance. As M&S is operating at multinational level and they have almost 1000
stores in UK in which almost 615 are serving only food products. Because of their huge
presence, it is necessary for them to do marketing audit which will help them to evaluate their
overall performance in an effective manner. In order to perform marketing audit, it is essential to
examine micro environment, macro environment and market strategies of M&S in a elaborated
manner.
Ansoff matrix:
It is an effective tool which is adopting by companies to analyse and make plan various
strategies for growth and succession. This tool include four factors within which helps an

organisation to grow and also helps to analysis the risk within these factors. There are described
below about these factors:
 Market penetration: This strategy will help the M&S to grow their existing products
and services in the existing market.(Kotler, et. al., 2017). With the helps of this strategy
they able to increase their market share, for this they can decrease the prices of their
products, increasing the advertising and distribution, and driving out competitors.
 Market development: In this strategy M&S will try to enter in a new market with their
existing products. For attaining huge customers base in new market, they can target
different customers segments or increase its presence in foreign market. It will be helpful
for the M&S if they are producing their products according to the new technologies and
analysing the customers behaviour.
 Product development: This strategy refer to the condition when a company is focussing
on the development of a new product in the existing market. For applying this strategy
successfully, M&S have to more invest in R&D to identify the strategies of competitors
and customers behaviour which will help them to produce products according to that
which results higher sales and brand value.
 Diversification: This strategy is related to that condition when a company focus on the
producing new products to enter in a new market. It is most risky strategy, for succeeding
in the market by this strategy, M&S needs high research and plan of the new market and
developing the products.
At present, M&S is using market penetration strategy so that they able to increase their
profits by enhancing the sales of its existing products in the existing marketplace. For better
understanding the market position of company, SWOT and PESTLE analysis is carried out
below:
The internal marketing environment:
The internal marketing environment can greatly impact on the organisational overall
activities. For identifying the internal environment of the business M&S will use the SWOT
analysis for this study(Sheth and Sisodia, 2015). Swot analysis is that acronym which represent
all the internal factors like strength and weaknesses of the organisation, and also tell about the
opportunities and threats of external organisation. This concept will help the business to develop
the awareness about all the factors which can effect on their organisational performance and

growth. There are description of SWOT analysis of the M&S which will help them to analyse the
current situation and to implement the effective strategies to give tough competition to its
competitors(Anda and Temmen, 2014).
Strengths Weaknesses
 M&S is well known for serving its
customers great quality of products
with a large number of products.
 As M&S is focussing on developing the
strong brand portfolio which helps
them to create and attract customer
towards their new products categories.
 M&S has huge global and online
presence across the world which helps
them to build their brand value across
the world.
 As compare to their competitors they
have face high attrition rate in their
organisation due to which they to more
invest in the training and development
program.
 M&S has huge presence in Europe, UK
and US but in Asia and Middle Eats
they are no able build their strong brand
value because they are more focussing
on the western approach not traditional.
Opportunities Threats
 M&S has covered a vast marketplace in
the world although they are not
succeeding in the Asia market, it is a
great opportunity for them to produce
ethnic and traditional wear which will
help to attract a large number of Asian
customers(Santucci, McHugh and
Barlow, 2012).
 Development of new technologies
provide a great opportunity to the M&S
as it will helps them to enhance their
online presence so that more people can
 One of the major threat which M&S
have to face is higher competition, they
need to beat their competitors such as
Zara, Tommy Hilfiger, etc.
 They are operating their activities in all
over the world due to which they have
to face different political and
economical facts of different nations.
Changing in these factors can posses a
big threat to the revenues and
profitability of company.

know about their products and services
which results higher sales and
profitability.
PESTEL analysis:
Pestle analysis is adopted by Mark and Spencer so that strategies can be adopted
accordingly by examining the external environment. Political, social, economical etc. are some
of the macro factors affecting the smooth functioning of the business directly. Every organization
carry out this macro factors so that business can run smoothly in the new market without
government interventions(Burgess and Steenkamp, 2013). By doing so opportunities and threat
prevailing in the market can be examined and strategies can be formulated respectively to meet
the satisfactory level of consumers. The Pestel analysis are explained as follows:
Political factor: This includes bureaucracy, political stability, foreign trade policy, trade
restrictions etc. In order to grow the business successfully it is very important that the political
factor for the nation is stable. Continuous fluctuation in political forces bring loss of Mark and
Spencer. UK political factors are stable and firm has huge growth opportunities to increase
customer base fr the goods and services.
Economical factor: Governmental activities, interest rates, laws, tax rates, wages etc.
this are examples of economical forces. Mark and Spencer is greatly affected by economical
instability. Due to which productivity and profitability reduces at a large scale. To survive for
longer time period organization need to scan external factors and frame tactics accordingly. By
doing so competitive advantages can be gained against competitors.
Social factor: Customs, religion, values, culture, society taboos etc. are included in
social factor. Mark and Spencer adopts this forces effectively so that goodwill can be raised in
the eyes of the customers. Violation of this factors decreases the market value gradually in the
competitive market place.
Technological factor: Mark and Spencer adopts modern tools and techniques so that
best results can be accomplished in the set time frame. Outdated technology unable to meet the
desiring outcomes due to which tough competition is not created in the intance market place.
Firm adopts 3D technology to pull customers towards their goods and services(Rawwas, Arjoon

and Sidani, 2013). This directly leads to accomplish set objectives in the cut throat competitive
world.
Environmental factor: Decreasing the pH level of water, pH level of soil, pollution,
climate change etc. are environmental forces which the functioning of the business directly.
Organization avoiding this forces may charged with huge penalties. Company research on
continuous basis so that innovative idea can be generated and environment is saved from
depletion(Engelland, 2014). Administration frames tactics to overcome environmental factors so
that emerging needs, demands and preferences of the customers can be full-filled accordingly.
Legal factor: To grow the business globally mark and Spencer adopts legal forces
effectively in the market. Wages act, remuneration act, compensation act, profit margins, product
transportation etc. are examples of legal factors. By adopting this forces appropriately potential
employees can be retained for longer time period in the enterprise. By doing so productivity and
profitability ratio increases at a large scale. Ignoring of this forces deceases the market value in
the open market place which is a negative sign for the firm.
Research on Market segmentation
Market segmentation: It refers to that research which tells that how an organisation
divide its customers in various segments like on the basis of age, personality, behaviour, needs,
income etc. These segments provide various benefits to the company as it will helps them to
know about the products and advertisement techniques which results growth and success of the
business. There are two sets of market segmentations which are described below:
Tier one:- Demographic segmentation: This is the most common and widely used element of the
segmentation which is sort the market by various elements like education, age, income,
nationality, race, gender and many more. It will helps the M&S to divide various
customers in above given different aspects which will assist the M&S to produce the
products accordingly.
Tier two:-
 Psycho-graphic segmentation: In this market segment, an organisation will able to
know about the consumers behaviours by dividing markets according to customers
values, opinions, interest, lifestyle, and personality(Camerer and Yoon, 2015). This will
helps the M&S to build a strong relationship with their customers as their main focus on

the customers choice, opinion, value which helps them to attract a large number of
customers.
 Geographic segmentation: This market segmentation helps an organisation in defining
different target groups on the basis of their geographical boundaries. It will helps the
M&S to determine that where they should sell and advertise and where they should
expand their business by understanding the wants and preferences of their customer of
different geographic regions and geographies(Möller and Parvinen, 2015).
 Behavioural segmentation: It divides markets according to the purchase choice,
lifestyle, and usage of the customers. This segment focus on the purchasing behaviour of
the customers, for this an organisation needs to provide right product to right customers
so they will satisfied and helps the company to enhance their productivity.
From all the above market segmentations, M&S will follow the Demographic and
Psycho-graphic segmentation. The Demographic segmentation will helps them to produce the
various products according to the age, gender, religion etc. so the needs of the every customer
can be satisfy. For instance, if M&S is producing the products according to the young age and
old people like if they provide modern and trendy products to youngest and classic product to
aged people then they will able to get more benefits and satisfaction of customers.
Other, Psycho-graphic segmentation will also provide benefit to M&S as it will helps
them to produce products according to the customer opinion and interest which results higher
sales of their products. For example, if they are producing their products according to the opinion
of the people like if they producing premium products for the high class people which are
valuable for them. And normal products for the economic class people which are must for living
the life so it will helps M&S to attract more customers towards their products and services.
Marketing Mix of M&S
Marketing mix refers to that technique which is used by a company to promote its
products or brand in the market. In reference to M&S, marketing mix strategy will help them to
promote their products in the targeted market. There are four factors in marketing mix like for
product, price, place and promotion which have greatly impact on the customers behaviours.
Here, the description about the marketing mix of M&S:-
Product: As M&S is a reputed retail chain brand which is operating their activities
globally(Eckhardt, Dholakia and Varman, 2013). It is dealing in the various items for all age

group of men, women and kids. M&S is dealing in various kind of products like clothing, beauty
products, home products, food items, flowers, gift items, and many others. The products of
generally purchased by high class people because of their higher quality and brand value.
Price: Although M&S is a high class brand but they are adopting competitive pricing
strategy. It is has its own in house brand although they are adopting competitive pricing strategy
because of higher competition in the market(Cornwell and Kwak, 2015). They are leading in
high quality products but they always keep their products price between medium to high range.
They are also following dynamic pricing strategy as they are giving various discounts to their
customers or sale old products at lesser price because of new trends and new stock.
Place: M&S have huge global presence as it has almost 1000 outlets in approx more than
50 countries. They also have great online presence as they has their own websites from where
customers can purchase their products at any time. It can be say that M&S have huge presence in
global which provide them great benefits in increasing their sales value and reputation.
Promotion: Promotion refers to that activities which are adopting by a company to
promote its products and services. For increasing their brand value, M&S uses various print
media, mobile ads, advertisement, and others social media factors. It also uses its own website
promoting its products and services. Along with this, M&S has a loyalty programs named
“Sparks” which adds points in customers account according to the amount they are spending on
the shopping.
These all the marketing mix strategies will help M&S to attract a large number of
customers towards their products and services which results higher profitability and brand value.
Analyse current marketing strategy and to meet requirement of suggested segment
For sustaining their position and capture a big market share, Marketing penetration
strategy is best suitable for the M&S. This strategy will helps them to attract a large number of
customer as in this market strategy the prices of the products and services are lesser than their
competitors. This pricing strategy is generally followed by the new entrants but as M&S is want
to increase their existing products in existing market so they will adopt this strategy to attain high
profitability and build customers loyalty(Fritz, Sohn and Seegebarth, 2017).
There are various kind of adopting this strategy like M&S able to cover a great market
place, create brand value, attract customer by lowering prices, and also helps them to beat their
competitors. Moreover, this strategy not only help M&S to beat their competitors but also they

able to build a strong customers base in UK market. In this strategy company have to decrease
their prices of its products but they always remember that their customers never have to face the
issue of lower quality as it will has negative impact on the customers mind which results lower
sales and decreasing brand value(Arsel, Eräranta and Moisander, 2015).
On the other side, Demographic segmentation is perfect for the M&S as it this market
segment helps them to targets its customers with more accuracy and efficiently. It will better
helps the company to collect more accurate and informative data according to the customers age,
preferences, social status, income etc. that will assist them to develop more effective strategies in
order to meet the requirements of the each and every customer. It will also helps them to build
their customers belief and retention as if the company is spending more time on their customers
wants, choices and preferences and produce their products accordingly. It will attract more
customers towards their products and services which results higher value of sales as well as
profitability. Moreover, this market segment also help them to monitor social trends and
preferences of the customers in order to attain their customers belief so that they able to meet
their customers wants which will be beneficial for both the company and customers. As it will
satisfied the needs of the customers which provide a great benefit to the company as they can
enhance their sales and profitability and can compete their competitors in the marketplace.
Whereas, Psycho-graphic segmentation is also very beneficial for the M&S as in this marker
penetration their main focus on the consumers opinion, values, habits, goals etc.(Eckhardt,
Dholakia and Varman, 2013). This strategy will helps them attract a large number of customers
towards their products because in this they are producing products according to the customers
lifestyle and needs which have positive impact on the customers mind that results higher
customers satisfaction and brand value.

CONCLUSION
Form above file, it can be understood that marketing and marketing audit are essential for
every organisation as they both are helps an organisation in an effective manner. Marketing audit
is help an organisation to evaluate their all the organisational activities with the help of SWOT,
PESTLE, Ansoff Matrix etc. Also, there are various market segmentation which helps an
organisation to produce those products and service which provide a great satisfaction to the
customers. By adopting a suitable marketing strategy, effectively evaluating their marketing mix
factors and market segments an organisation can get more success and can easily accomplish
their organisational goals, objectives, and take benefits of the competitive advantage over their
competitors.

REFERENCES
Anda, M. and Temmen, J., 2014. Smart metering for residential energy efficiency: The use of
community based social marketing for behavioural change and smart grid introduction.
Renewable energy. 67. pp.119-127.
Arsel, Z., Eräranta, K. and Moisander, J., 2015. Introduction: theorising gender and gendering
theory in marketing and consumer research.
Burgess, S. M. and Steenkamp, J. B. E., 2013. Introduction to the special issue on marketing in
emerging markets. International journal of research in marketing. 30(1). pp.1-3.
Camerer, C. and Yoon, C., 2015. Introduction to the journal of marketing research special issue
on neuroscience and marketing. Journal of Marketing Research. 52(4). pp.423-426.
Cornwell, T. B. and Kwak, D. H., 2015. Sponsorship-linked marketing: Introduction to topics.
Journal of Sport Management. 29(2). pp.133-136.
Eckhardt, G. M., Dholakia, N. and Varman, R., 2013. Ideology for the 10 billion: Introduction to
globalization of marketing ideology. Journal of Macromarketing. 33(1). pp.7-12.
Engelland, B. T., 2014. Religion, humanism, marketing, and the consumption of socially
responsible products, services, and ideas: Introduction to a special topic section. Journal
of Business Research. 67(2). pp.1-4.
Fritz, W., Sohn, S. and Seegebarth, B., 2017. Broadening the perspective on mobile marketing:
An introduction. Psychology & Marketing. 34(2). pp.113-118.
Kotler, P., et. al., 2017. Marketing for hospitality and tourism.
Krishna, A. and Schwarz, N., 2014. Sensory marketing, embodiment, and grounded cognition: A
review and introduction. Journal of consumer psychology. 24(2). pp.159-168.
Möller, K. and Parvinen, P., 2015. An impact-oriented implementation approach in business
marketing research: Introduction to the Special Issue on “Implementing Strategies and
Theories of B2B Marketing and Sales Management”. Industrial Marketing
Management. 45. pp.3-11.
Rawwas, M. Y., Arjoon, S. and Sidani, Y., 2013. An introduction of epistemology to business
ethics: A study of marketing middle-managers. Journal of business ethics. 117(3).
pp.525-539.
Santucci, L. C., McHugh, R. K. and Barlow, D. H., 2012. Direct-to-consumer marketing of
evidence-based psychological interventions: Introduction.
Sheth, J. N. and Sisodia, R. S., 2015. Introduction: Does Marketing Need Reform?. In Does
Marketing Need Reform?: Fresh Perspectives on the Future (pp. 11-20). Routledge.