Comprehensive Marketing Strategy Analysis: Marks & Spencer

This report provides a comprehensive marketing analysis of Marks & Spencer (M&S). It begins with an introduction outlining the report's structure, which covers the difference between needs and wants, and the needs, wants, and demands of M&S customers. The report then delves into situational analysis, emphasizing its importance for setting marketing strategies, followed by an examination of micro and internal environmental factors influencing M&S and its competitors (Tesco and Zara). It analyzes core competencies, organizational resources, and the 4Ps of the marketing mix (Product, Place, Promotion, and Price) used by M&S. The report highlights M&S's strengths in building brand image and adapting innovations while acknowledging weaknesses in pricing strategies and financial position. The analysis includes an examination of M&S's distribution channels, and its product lines. Overall, the report offers a detailed assessment of M&S's marketing environment and strategic approaches.

MARKETING AND
COMMUNICATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
a) Difference between needs & wants.........................................................................................1
b) Needs, Wants & Demands of customer's of Marks & Spencer...............................................2
TASK 2............................................................................................................................................3
a) Situational Analysis and its importance for setting marketing strategies................................3
b) Micro Environmental factors affecting company and competitors of Marks & Spencer........4
c) Factors related to Internal Environment..................................................................................4
TASK 3............................................................................................................................................5
a) 4P's of Marketing Mix.............................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing strategy used by company for promoting its products & services in market and
for influencing its customers. This report includes difference between needs & wants. Further,
this report explain needs, wants and demand of customers of company. Furthermore, this report
elaborate situation analysis. Moreover, this report includes types of marketing environment and
various methods for analysing affects these factors on organisation. After that, this report analyse
importance of situation analysis in making marketing strategy of Marks & Spencer (M&S).
Further, this report explains micro environmental factors of firm. Furthermore, this report discuss
about two competitors of company. Moreover, this report includes internal environmental factors
and strengths or weakness of core competency & organisation resources for firm. At last, this
report explains 4P's of marketing mix of chosen organisation.
History
Marks & Spencer is a multinational clothing retailer includes variety of clothes and
accessories in its portfolio. It is a British company which has its headquarter in London, United
Kingdom. Company is incorporated in 1884 by Michel Marks and Tomas Spencer. M&S sold its
products & services under St Michael brand. After this,, in 1901 company shifted to Birkenhead
and made a contract of amalgamation with Spencer. After amalgamation some products &
services are sold under St Michael Brand and some are in under a label of Michel Marks. Main
objective of company is to offer quality products. Thus, M&S is a retailer of Quality Products. In
1953 company set up its slogan as “The customers is always & completely right”. In 1974 firm
introduce Asian Food to expand its product line and company also improve energy by providing
efficient use of Energy. After 1960 company expands its business in international market and
now firm is operating its business in more than 50 countries worldwide.
TASK 1
a) Difference between needs & wants
Needs & Wants are different from each other and this difference help individuals in
deciding their budget. Need is something which requires in fulfilling necessary requirements
such as food, shelter, health care products, water and clothes. Thus, need is basic things which is
essential in order to live the life. On the other hand, Want is desire of individuals for having
something which they like. Want is not essential to have it is fulfilled according to the financial
capacity of individual(Chernev, 2018). Both this terms creates demand & supply of products &
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services in an economy. Thus, it is necessary to understand between both of these terms.
Comparison between Needs & Wants are described below-
Basis Needs Wants
Meaning Needs includes basic
requirements of individuals.
Wants is desire of individuals
to having something.
Survival Needs are Necessary for
survival.
Wants are not necessarily
required for survival.
Nature Needs are limited such as
clothes, roof and food. They
cannot be changed.
Wants are unlimited they keep
increasing according to change
and innovations.
Fulfilment If needs are not fulfilled than it
can lead to death or can cause
various diseases. Thus,
fulfilment of needs is
necessary.
It is not necessary to fulfil
each want because it does not
affect survival. Its just create
disappointment.
b) Needs, Wants & Demands of customer's of Marks & Spencer
Needs, Wants & Demands of customers of Marks & Spencer is an important asset for
company and it is necessary for firm to fulfil needs & demands of customers which helps
company in enhancing its profits, market share and customer base of company. These three terms
helps Marks & Spencer helps in making decisions related improvement and promotion of its
products & services. These terms also provides information related to willingness and desire of
its customers which further helps company in making strategies to enhance its profitability.
Needs are basic requirements of customers for example food & clothes and customers
does not compromise on it. Marks & Spencer offer variety of clothes and as it is basic need of
customers of organisation thus, it helps company in enhancing volume of sales of its products &
services. Its is also beneficial for firm as there is no need to spent much on its advertisement &
promotion. Income & changes in economic factors does not affect sales of products & services of
M&S as it is a basic need. Need of a thing further creates want which helps M&S in earning
extra profits(Pope, Warren and Cowan, C.A., 2016).
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Wants are not essential to fulfil its just a desire. Want of customers of Marks & Spencer
keep changing according to changes in trends and innovations. Company has to create want for
its products & services in market by offering different designs than its competitors. For Example
Clothes offered by M&S is branded and innovative which create desire in its customers. Wants
helps company in offering different line of products which leads to expansion and enhances
profitability of Marks & Spencer(Jackson, Hussainy and Kirkpatrick, 2015).
Demand describes capability and willingness of customer to purchase products &
services of Marks & Spencer. Purchasing power of customers converts wants into demand. For
Example a customer has enough money to purchase desired clothes than it creates demand for
products & services of M&S. Thus, company has to analyse economic factors such as market
condition & income level and make changes in its operations accordingly to achieve profits.
Higher the demand of companies products & services higher will be profit and customer base of
company.
TASK 2
a) Situational Analysis and its importance for setting marketing strategies
Situation Analysis is a process for analysing various internal & external factors which
affects operations of company and its is also done by managers of Marks & Spencer for making
marketing strategies. It is important for M&S as it helps company in evaluating its business
environment, customers requirement and its capabilities. It also helps company in finding out
various factors that affects operations & profitability of firm. While doing this analysis company
evaluate various situations such as product situation, competitors, distribution situation,
environmental factors and various opportunities & threats(Camilleri, 2018).
Marketing Environment consist of Internal Environment & External Environment. These
environments include various factors which affects operations of companies. Internal
Environment includes various factors which are related to firm such as owners, managers,
pricing strategies, labours and production process. This factors are controllable by company on
the other hand external factor cannot be controlled by organisations which are competitors,
suppliers, customers, economic factors, social & political factors. Analysis of this environment is
to be done by using PESTLE Analysis, SWOT Analysis and Porter's five force model.
This factors of Internal & External Environment also affects operation of Marks &
Spencer. M&S does situational analysis before setting up its marketing strategy to know its
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strength & weakness and it also helps company in finding out various strategies used by its
competitors. Situation analysis is important for M&S in evaluating position of company in retail
sector and it also helps company in finding out needs & expectation of its customers(Gillespie
and Riddle, 2015).
b) Micro Environmental factors affecting company and competitors of Marks & Spencer
Tesco & Zara are two competitors of Marks & Spencer. They both are competitors of
company because they offer same type of products as offered by M&S and Both the firms
operates in same market or industry which retail sector. Zara is also a clothing brand which
offers trendy designs of clothes and accessories whereas Tesco is a multinational retailer which
offers clothes, accessories, food items and other home care products. These competitors are
threat for company as it operates in same industry and includes same products in its portfolio.
Zara is a threat for H&M as it follows low pricing strategy which attracts customers and
Zara too operating its business in international market which creates competition in market. One
more threat from Zara is it introduce new designs twice in a week and customers demand for
fashion frenzy products.
Product line offered by Tesco and Marks & Spencer are same which creates competition
in global market. Company also has a threat of reducing its customer as bot offer same products
and Tesco also attracts its customer by giving discounts and offers. Market share of company
also decreases with introduction of Tesco(Kotler, Makens and Baloglu, 2017).
c) Factors related to Internal Environment
Internal Environment consist of various factors presents in company such as managers,
labours, values, resources, core competencies, culture and technology. All this factors affects
operations of Marks & Spencer and company can control this factors according to requirement.
This factors also helps M&S in analysing its strengths & weakness. Core Competency and
Organisation Resources helps firm in analysing its strengths & weakness. Both these factors are
discussed below-
Core Competency- Core Competency shows process and methods used by company which
gives better results and helps company in enhancing its profits & performance. It shows various
skills of company at which it is good such as innovation & advancement skills, minimising cots,
building brand image and expansion. For Marks & Spencer it is a strength because company is
good at building brand image as it comes under top 5 retail clothing brands in the world and a
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better brand image helps company in expanding its operations & profits and company is also
good in adapting innovation in technology and market trends. On the other hand weakness for
company is it has to change its pricing strategy according to change in strategy used by its
competitors.
Organisation Resources- Resources of organisation refers to various items which helps
company in producing & promoting its products and services. Resources of Marks & Spencer
includes brand image, financial position of company, customer base & loyalty, technology &
advancement and skills related to manufacturing its products & services. These internal
resources also helps M&S in maximising its profits and performance as brand equity, customer
base and manufacturing skills of company are very good. Thus, it is also a strength for company.
Whereas weakness for M&S is financial position of company gets affected with the change in
economic factors(Wu and Li, 2018).
TASK 3
a) 4P's of Marketing Mix
Marketing Mix is a model used by organisations to promote its products & services in target
market with the purpose of achieving their objective. Marketing Mix includes Four tools which
helps in making decisions related to marketing. These 4P's are Product, Place, Promotion and
Price. Marks & Spencer also use Marketing Mix for making its marketing strategy and these are
discussed below-
Product- Product is goods & services offered by company with the objective of fulfilment of
needs & wants of customers. Marks & Spencer includes variety of products in its product
portfolio which helps customers in identifying desired products and it also satisfies needs of its
customer. Company divides offerings of its products & services in 5 product lines clothes, home
& furniture, Food & Wine, flowers and accessories. M&S provides clothes & accessories for all
age groups and for all men, women and children's. Most offered product by company is clothes 7
accessories and it offered variety of clothes such as blazers, cardigans, denims, shorts, skirts,
shoes, sunglasses, bags and jewellery.
Place- Place is an element from where company offer its products & services and it is a
distribution channel which includes outlets and online websites. Marks & Spence is a
international retailer which offer its products through more than 1000 outlets in 50 countries
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across the globe. M&S also offers its products through online websites such as amazon & flip
kart(Grönroos, 2016.).
Price- Price is value of products & services offered by company and the amount which is to be
payable by customers. Pricing of products & services of Marks & Spencer is decided on the basis
of prices of products of its competitors. Thus, M&S follows competitive pricing strategy.
Company also gives discount and offers to attract its customers like buy one get one offer, 50%
discount and Buy 2 get 70% at the end of season. This strategy is known as dynamic pricing
strategy.
Promotion- Promotion is technique used by organisations for advertising & promoting its
product & services with the purpose of influencing & enhancing its customer base. Marks &
Spencer invest most of its profits in advertising of its products. Company gives advertisement
through print media, TV ads and social media such as twitter, Instagram and Facebook. M&S
also promotes its offering through its own website. Firm also uses direct marketing strategy for
its permanent customer's in which company text to customers regarding discounts & offers(Ang
and Rusli, 2018).
CONCLUSION
This report outlined purpose of the report and history of Marks & Spencer. Further, this
report summarise difference between needs and wants. Furthermore, this report outlined needs,
wants and demand of customer's of company. Moreover, this report concludes meaning of
situation analysis. Further, this report outlined type of marketing environment and tools to
analyse these environments. Furthermore, this report summarise importance of situation analysis
for firm. After that, this report outlined two competitors of M&S. Moreover, this report
concludes threats for company from its competitors. Further, this report outlined factors of
internal environment and strength or weakness of Core Competency and Organisation Resources
for company. At last, this report concluded 4P's of Marketing Mix.
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REFERENCES
Books and Journals
Ang, C. and Rusli, H., 2018. The Impact of Marketing Mix 4Ps and Consumer Behavior toward
Purchase Decision of Adidas Products. iBuss Management. 6(2).
Grönroos, C., 2016. Modern Marketing–and. Marketing in Evolution: Essays in Honour of
Michael J. Baker, p.14.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce: A stimulus-organism-response perspective. Internet Research. 28(1). pp.74-
104.
Kotler, P., Makens, J. and Baloglu, S., 2017. Marketing for hospitality and tourism.
Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.
Camilleri, M.A., 2018. The marketing environment. In Travel Marketing, Tourism Economics
and the Airline Product (pp. 51-68). Springer, Cham.
Pope, B.D., Warren, C.R. and Cowan, C.A., 2016. Microenvironmental control of adipocyte fate
and function. Trends in cell biology. 26(10). pp.745-755.
Jackson, J.K., Hussainy, S.Y. and Kirkpatrick, C.M., 2015. IDENTIFICATION OF MACRO-
ENVIRONMENTAL FACTORS AFFECTING UPTAKE OF ENHANCED
PROFESSIONAL PRACTICE IN PRIMARY CARE. Malaysian Journal of
Pharmaceutical Sciences. 13(1). p.85.
Islam, M. and Pattak, D.C., 2017. Impact of Macro Environmental Factors on Garments Industry
That Drives Export in Bangladesh. Studies in Business and Economics. 12(2). pp.100-111.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
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