Marketing Management Report: Marks and Spencer Strategy Analysis

This report provides a comprehensive analysis of Marks and Spencer's marketing management. It begins with an executive summary highlighting the company's segmentation, positioning, and targeting strategies, particularly its focus on specific geographical areas and cost/quality positioning. The introduction provides a background on Marks and Spencer, its history, and its market presence, including its product lines and international operations. The main body delves into the retail industry and Marks and Spencer's market positioning, including its unique selling proposition of high-quality products. It analyzes the company's marketing audit, including internal and external factors, and a SWOT analysis, evaluating its strengths, weaknesses, opportunities, and threats. The report also examines Marks and Spencer's segmentation, targeting, and positioning strategies, including its demographic and geographic segmentation approaches. Finally, the report concludes with a discussion of new marketing mix actions to address gaps between the company's current strategy and the external environment.

MARKETING
MANAGEMENT

Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Background statement to outline the industry, organization and marketing positioning............4
Marketing audit (internal and external) outlining the overall marketing attractiveness and
whether there is potential for market growth...............................................................................8
Critically defended new marketing mix actions to achieve gaps between the company's present
marketing strategy and external environment............................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

EXECUTIVE SUMMARY
Report has highlighted about the segmentation, positioning and targeting strategy of Marks and
Spencer. They have targeted specific geographical areas like Mid London so that they can open
new retail stores over there in order to attract more customers. Company has made use of cost
and quality positioning strategy to set up their market share . They have made use of marketing
mix strategies so that the gap can be reduced which is faced by company.

INTRODUCTION
Marketing Management is the discipline of an organization which focuses on planning of
product, pricing, distribution and promotion of ideas and services to create and achieve
individual and organizational objectives. This process includes the following concepts they are-
Production concept, Product concept, Selling concept and Marketing concept. It plays a crucial
role in the success of an organization. It helps to develop the customer base of the company.
Report lays emphasis on Marks and Spencer. It was founded in 1884 by Michael Marks and
Thomas Spencer. It has been in the market for around 135 years now. Headquarters in London
they are recognized for their high standard quality products and the list includes home and food
products too.
They have 959 stores in U.K. out of which 615 concerns to food products. This company is listed
under London stock exchange. This report highlights a background statement to outline the
industry, market positioning as well as the present unique selling proposition. This report
outlines the overall marketing attractiveness and whether there is potential growth for market or
not. This reports helps to enhance new marketing mix actions to achieve and overcome.
MAIN BODY
Background statement to outline the industry, organization and marketing positioning
RETAIL INDUSTRY-
This industry states that when a producer delivers their goods and services to the final consumer.
When a commodity is completed into a finished product then goods are delivered by
manufacturers to retailers. Retail sector economic output was £92.8 billion in 2017. In 2008
internet sales accounted for 5% of retail sales.
Sometimes retailers buy goods from middleman such as distributor or wholesaler. Wholesaler
buy goods in bulk from companies or manufacturers and deliver them in small quantities to
retailers as per their requirements. Retailers are the last on the channel of distribution as they sell
the final products to consumers.
To increase their profit margin retailers sometimes increase prices of the products. Everyone who
is a part of channel of distribution does that. Some retailers cut wholesaler and buy directly from
manufacturers in bulk. Some retailers produce their own product and the item which is highly
sold they sell it themselves. This is also known as vertical integration.

Profit margin in retail industry is measured by retail sales every country publishes report of sales
every month.
Examples of Retail industry- Traditional Brick and Mortar stores is the most common examples.
Giants like Wal-Mart, Best Buy also comes under retailing. Retailers which sell services such as
bars, hotels, restaurants, cinema etc. all are included in retailing.
MARKS & SPENCER-
It was founded in 1884 by Michael Marks and Thomas Spencer. It has been in the market
for around 135 years now. This company is listed under London stock exchange. Company
stated to expand its market into another country like Canada, France. When they started in
Canada the response was good by the people but the retail stores were not as big as they were in
Britain and the selection was different. Nevertheless, due to suffering of unbearable losses they
shut down their operations in Canada in 1999. On the other expansion in France was a profitable
venture for the company after Paris they expanded further into another French and Belgian
countries but operations conducted in Western Europe were not successful as they were in Paris
so they sold eighteen shops in 2001. However in 2011, they changed their direction and
announced in the market that they will sell clothing and food as well. In 1988, Marks and
Spencer acquired 2 companies which was Brooks Brothers an U.S. Clothing company and Kings
super markets a food chain.
When they increased profit margins to high levels which were up to the mark. The rising cost
became a burden for retailers as competitors started imported their goods from different
countries. Another factors they faced a financial decline was they did not accepted credit cards
till 2001. This came as a shock to investors be it small or big it came out as a big shock to them.
they also got financial services named as M&S banks financial services including with credit
cards, current accounts and as usual savings, insurance and mortgages in there bio as for csr
company also produce renewable sources of energy with sun and wind. They have various plant
certified with UK goverment.
Market positioning of marks and Spencer
The company is very aggressive in their business strategies and also tries to attract the
customers with good quality of products and except the clothing industry Marks and Spencer
also serves in the food industry and has many food outlets as well. The company is always trying
to enhance its quality and aim to grow by reaching to different parts of the world by their retail

stores. Marks and Spencer is now a very renowned brand which also push it to edge of better
market position and expansion. Although every company has to face some internal and external
forces of the environment and those companies who manages these forces efficiently shows their
customers how dedicated the company is.
The company is very strict with their rules and policies for their employees and they also give
more emphasis on the human resource management. Which is very important aspect of any
successful organisation. The organisation set some yearly goals and human resource managers
helps them to accomplish those efficiently, this gives customers and stakeholders a trust that they
are investing in a successful company.
Strategy and segmentation:
Marks and Spencer makes strategies according to different markets. They also take feedback
from the customers and tries to enhance the product so the customer can increase their demand.
There are different ways the Marks and Spencer decides the marketing policies which includes
age, gender, education level, geographical location of the customers, disposable income of the
customers, risk, Morales of the customers. Marks and Spencer make use of demographic and
geographic segmentation. They lay emphasis on new target market Like south Africa. Also
company lays more focus on young adults lying between the age of 20-35. Marks and Spencer
also focuses on customer retention which come after sales of the product. Marks and Spencer
conducts many promotional surveys to check the behavioural pattern of the customers and then
the organisation works their products and marketing strategies to enhance the sales and also to
satisfy the consumer needs in the given amount of money. Marks and Spencer uses the
demographic segmentation to sell their products as they have 622 retail stores in UK itself. As
customers living in the inner and greater London purchase more clothes as compared to mid
market in London, so Marks and Spencer will start a survey to know the problem and also solve
the problem.
Target:
the company targets on the customers on the basis of segmentation of markets, if a market is
demographic then the company will try making products according the age groups and gender so
to attract more customers. This is very commonly used strategy in every clothing business. So

company has to also come up brilliant ideas for promoting and attracting the customers. for
example Marks and Spencer will attract its customers by selling men's and women's clothing
separately and also loose and comfortable clothing for old age and more flexible and sporty
clothing for young age customers. They target new market segments like Brazil and South
Africa. They also target young adults between the age of 25-35.
Positioning:
the company determines its price according to the geographical situations and the market
conditions. Marks and Spencer also focuses on the strength and weaknesses internally and
externally. Marks and Spencer also focus on innovating its product to set a quality standard that
all other companies follows them. As Marks and Spencer focused on lingerie which was
important in terms of both fashion and comfort. The market of lingerie itself in UK is 1.75
billion Euros. The threat of new entrants can take away the position of Marks and Spencer so the
company has to very competent. Company make use of Quality positioning strategy where they
will lay emphasis on quality of products.
UNIQUE SELLING PROPOSITION OF MARKS AND SPENCER-
Marks and Spencer are known for their high standard good quality products which includes
clothing, food and home products. Their unique selling proposition is to fulfil all the clothing
needs of rich people. Products they offer to their consumers make them different from their
competitors as their consumers feel prestigious. They are the first ones in the market to come up
with new trends and innovative designs. They make their products and make their target
customers feel that they are worth every penny you spend on them. Their targeted customers are
people who belong to elite class customers who can afford it. It is reported by Marks and
Spencer that every week they serve twenty one million customers. Their food products and home
products are sold under one roof that is FoodHall which offers a wide range and different types
of products be it imported goods or be it goods from any brand it is sold under FoodHall they
believe that the place is for people who love food and are big time foodies and their motive is to
sell consumers many types or categories of products under one roof which their competitors can't
provide to their customers. They believe that product under one roof will sell more rather than

products under different roofs because it saves time of the consumers and a wider variety attract
people to buy more.
Marketing audit (internal and external) outlining the overall marketing attractiveness and
whether there is potential for market growth
The SWOT analysis of mark and spencer is about their strengths, weaknesses, opportunities and
threats of this retail company which holds a major share in UK`s market, which is 17% in
clothing line. Which shows how they portray their business in the market.
Marks and spencer hold different products in the market of UK for e.g. Beauty products, clothing
line, alcohol etc. which gives them a different space and position in market.
Strengths
Marks and spencer provides there consumers various and different type of product like wine,
clothing, food, financial products which develops and creates a large consumer base.
The loyalty of customers towards firm is well established which gives it immense brand
awareness among UK public
Marks & Spencer have effective product line with better customer base which attracts new
consumers towards them. With their high quality products like kids wear, women`s smart casual,
lingerie and their wine, beer are the famous among their customers.
Popular and designer brands such as “autograph, indigo, limited collection, per una, portfolio are
its major strength to grow and expand.
opportunities
Marks and spencer’s have good response in European countries where they hold 56 franchised
and wholly owned market Now they are heading in Indian market where they find goof and
emerging business. company now targeting there focus on overseas market and tends to expand
their supply chain. with some new and creative innovation in existing and upcoming products
enable their scope and widen their presence in the market. With many people who turns their
mind to be fit and healthy are now having good healthy vegetarian meals and other healthy and
organic food are now creating a massive opportunities in the market and here marks and
spencer’s has high quality food product such as baby products women products etc. increase of
global presence may lead them into the European markets. Mark and spencer’s is globally

recognised brand so they can grow their business globally. As their product line is high and
effective so they have a good opportunity to spread in market segmentation.
Weakness
publicity is the problem which emerges as the big issue for Marks and Spencer. Marks and
spencer as they follow old fashioned and non-trendy products where today or Morden generation
go with new and stylish fashion that is the point where they lack and should develop their
strategies. As they follow old tech in modern market so it decreases their chance for high sell. By
following old tech and manual working increases there cost. competitors such as Primark, next,
ever island, osasis, H&M etc are shifting there gears towards trend market. its repo rate with
present condition has to develop with old policy ton save company from bad publicity.
Threats
Political factors :
Analysing the political factors of a new market of any country where they are going to start their
business is important for the success of their business. Mark & Spencer is a multinational
company and working over a large number of territories they have to face different political
environment over different countries and they have to deal with them. The Mark & Spencer
gathers information about the country rules and regulations , laws and legal framework of a
country and use those in the favour of their company. As Mark & Spencer is a Clothing & food
Company different countries have different trade policies and some have free trade policies by
doing business there they earn huge amount of profit. . They have to Know about pricing policies
of the country they have to maintain cost of their products according to the price prevailing in
the country this helps Mark & Spencer to maximize their profit. . The waging system needs to
analyse to know the minimum wage system prevailing in the country. Gather information about
how much government interfere in the retail business of the country so that make the policies
according to government interventions that is profitable to company.
Economic factors :
Economic factors is important to determine the financial statement & financial efficiency of
market where you are going to start a business . Infrastructure development of a country's retail

industry also plays an important role as it helps Mark & Spencer to setup there business over
those countries where they reach more easily and they have no need to work over the
infrastructure development of those countries . Mark & Spencer has to analyse the economic
growth rate of a country. They have to know have much education is given importance in a
country. They have to know Interest rate prevailing on retail market and according to that setup
there business over that market and set prices according to interest rate . Economic structure of a
territory plays a large impact on the success of the Mark & Spencer they have to know about
employment rate ,large skilled worker helps them to achieve there goals . The stability in the
economic system helps them to start there business over there and the currency policies and
exchange rate helps them to set the prices of there product and also how stable the currency of
the country where you are starting business is useful for success of there business.
Social factors :
Social factors means the culture of a country that will impact the working of the organization.
Mark & Spencer analyse the population of the country about the attitudes of different population
they have to know the nature of different people like if they market their product in
underdeveloped sectors of society they have to face the problem of the culture of those societies
the people of those sectors are not familiar with there product. They have to know the leisure or
branding interest of people because the cost of there products are high and only the people who
are interested or addicted towards their brand will buy their product . Gender roles area also
affect the success of business as the M & S is the unisex company they have to know the interest
of both the genders in the market.
Technological factors:
Technological factors effect the working of an organization if better technology available over
targeted areas then it becomes easy for a company to earn profit. If talking about technology
sector the Mark &Spencer group expanding or transforming very fast and even the competitors
are not able match up with technology of M&S so they need to set their business over the market
where they don't have to work over the technology it helps them to grow fast . . They have to
analyse the technologies impact over the market or product they are offering so that according to
technology they make changes over there product. Technology effects the price of product like if

M&S market there product in lower technological field they have to develop or work on
technology by their own and it will raise the price of product as well. Mark & Spencer sell there
products online they have to know about the internet availability and the customers who are
ready to purchase online so that they can reach customer more easily.
Legal factors:
Legal factors will also become a problem for success of business. Before entering a new market
M&S has to know about the legal framework of that country. They have to gain knowledge
about the labour laws and consumer protection rights of the countries if labour wage or cost is
high then they can shift their business information about labour cost is important for deciding the
price of product. Data protection or data security system needs to analyse for the safety of the
business and also the knowledge of government rules regarding copyright and patents.
Environmental factors:
Mark & Spencer has to analyse the environment of the country or a place know about the laws
relating to environment pollution. About the weather like if they going to start the business over
high monsoon area the transportation becomes very tough for them due to heavy monsoon.
Due to change in climate the preference of people also changes so according to that Mark &
Spencer needs to produce their product . Also they have to gain information about the waste
management , air and water pollution because government laws relating to pollution over some
countries . They try to reduce there waste or recycle them because some countries government
give permission to recycle the waste product . Mark & Spencer before entering the new market
have to know about the laws relating to the environment pollution and make there policies
according
Critically defended new marketing mix actions to achieve gaps between the company's present
marketing strategy and external environment
The 7 P's which are product, prices, promotion, place, packaging, positioning and people of
Marks and Spencer are as follows-

Product: Food products, high quality clothing and home products are its specialises in selling.
M&S products deal with clothes for all gender, shoes, cosmetics, toiletries, perfumes and etc.
The food production of this company is already well established but the clothing production is
still at its struggling period.
M&S's food stores are rated as the most convenient stores in respect to range of products, staff
helpfulness, appearance, queuing timing, special offers.
Promotions: The company still used the traditional approach to promote its products.
Traditional approaches which are television and radio. M&S also promotes itself on various
different social media networks like Twitter, Instagram, Facebook and YouTube. There draw
back on promotion are they do not have personal bloggers and they do not hire movie/TV stars in
there advertisements.
Though they attend and take part in many events throughout the year and trade exhibitions. But
they must take the digital marketing techniques seriously to avoid online traffic on the website.
To add the customers to purchase again they should also start collecting customers personal data
and sent out mails and SMS to inform them about sales and new arrivals.
Price: The prices at which M&S are selling their products are higher than its competitors since
they are providing better and more features. The price of the products increases online since it
includes the transportation fee. The company should introduce discounts and offers at least for a
short period of time since it attracts customers. And also the company should start using the
psychological prices to make the customers see that the price is low but it actually is not like a
product worth $700 as $699.
Place: There are two market channels which are used by the company, one is they sell it to the
customers directly using online websites and the other one is to sell it to a retailer and they sell it
to the customers. Another way which should be added in the company is online social media
pages which will give more sales and a better navigation to the customers.
Mark and Spencer has 1463 stores worldwide but social media network of this company has
trouble with traffic online. Own company-operated retail stores should be opened by the
company to reduce the prices for the customers and the company itself.
People: M&S has people working in the sales, suppliers to obtain raw material, customer service
and retail stores departments. Though the customer service are trained to resolve problems with
the customers and respect them but M&S should hire more employees who commit to the

company and show respect towards the customers. M&S should start giving bonuses and
incentives to the employees for the sales they have made since that boots up the enthusiasm.
Process: There are systems which are installed in the retailers store in which they can notify
M&S if they have low inventory so that the company is will prepared in advance the they do not
keep the customers held up. M&S should start using computers to reduce time consumption and
it can become for efficient in work. In terms of cost and efficiency M&S should always improve
and innovate its processes. Researching market is always active in innovation more products by
understanding its customers and feedbacks which are collected (Bagozzi and et.al., 2018).
Physical Evidence: In a retail store M&S has made shelves and packaging of the product
different in colour and design to attract customers even if the store is busy. Regarding to its
online website, it is friendly for the users and has high quality images from different angles.
Feedback on the packaging should be taken from the customers to improve itself.
CONCLUSION
As mentioned above Marks and Spencer has been engaged in doing all its business practices
truly and lawfully, but the company need to improve its market analysis strategies and customer
relation approach should also be considered. However, there are much space for research and
development and also more innovation in the organisation. Marks and Spencer has emerged with
a very good brand image in clothing industry but also has to face big downfall just because the
company was not focusing on the positioning of the product with the wrong selection of
segmentation strategies to get and advantage against the competitors in the industry Marks and
Spencer also had focus on the organisation's capabilities not just quality and cost management.
Marks and Spencer instead of using focus group techniques should have used more efficient
ways to know the customers' feedback. Marks and Spencer has also focused on proving their
consistency time to time by also innovating their products. The company also focused on the
Human resource management system to improve their workforce. Marks and Spencer chose the
right location for their stores so that they can attract maximum customers. The company has also
set yearly objectives that motivates the employees and also shows the efficiency to their
customers and shareholders. Marks and Spencer's motto was to innovate their products and set an
quality.

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