Marketing Plan Executive Summary Report: M&S Leather Bag Global Launch

This report presents a marketing plan executive summary for the launch of Marks & Spencer's (M&S) new leather bag. It includes a PESTLE analysis to assess macro-environmental factors, and an STP analysis (Segmentation, Targeting, and Positioning) to define the target market. The report outlines the marketing objectives, marketing mix strategies (product, price, promotion, place, physical evidence, process, people), and a SWOT analysis to identify internal strengths and weaknesses, and external opportunities and threats. Furthermore, the report covers the marketing program, including communication strategies, and a competitive analysis comparing M&S with competitors like Tesco and Aldi. The plan focuses on achieving a 30% sales increase and a 20% rise in consumer numbers by the end of the year, utilizing strategies such as penetration pricing, social media promotion, and direct distribution channels to reach a global audience. The report also emphasizes the importance of adapting to market changes and building a strong brand image to maintain a competitive advantage.

MARKETING PLAN

EXECUTIVE SUMMARY
The present report is based on Marks and Spencer which is coming up with new product
i.e. Leather bag at the global level. For this pestle analysis will be done for determining factors
creating impact on its business operations. Also, STP analysis will be disclosed. The marketing
program and competitive analysis will help to know the competency capabilities of company in
the market. SWOT analysis has been performed for identifying the internal strengths and
weaknesses and external opportunities and threats.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
MAIN BODY...................................................................................................................................4
PESTLE ANALYSIS..................................................................................................................4
Strategy & Segmentation, Targeting and Positioning.................................................................5
REFERENCES................................................................................................................................6

MAIN BODY
Mission: To become market leader is the mission of Marks and Spencer.
Vision: To offer high quality products to consumers and ensure that consumers get value for
money
Marketing objectives
The objective of this marketing plan of M&S is to raise sales of company by 30% till the
end of 2019. Another objective of business unit is to raise number of consumers by 20% before
completion of this year.
Marketing mix
This is the strategic tool that helps the firm in promoting the brand and attracting number
of buyers towards the organisation.
 Products: In order to meet the marketing objective M&S will serve consumers the best
quality goods and services. Firm will ensure offering products that have required quality
standards.
 Price: M&S will take support of penetration pricing strategy, in this firm will offer its
goods at affordable rates. If company is selling items at lower rates, then it would help
business unit in gaining attention of mass audience. This would be best strategy because
by this firm will be able to gain competitive advantage.
 Promotion: This is another most important element of marketing mix. M&S will use
social media Facebook and Twitter to promote this product. In the recent time most of the
people use social networking sites hence this strategy will be beneficial in gaining
attention in the new market. This is the modern approach which would give best result to
organisation. In addition, M&S will also promote the brand by involving celebrities
which will gain attention of buyers.
 Place: Marks and Spencer is operating in the global market, it will use direct distribution
channel in order to place the order to mass audience. This strategy will give the best
result to firm , as cost of direct distribution is manageable and firm can get the advantage
of reaching to mass audience.
 Physical evidence: M&S will use attracting logos and its infrastructure in the new
location will be amazing. This tactic will give the best result to business unit and will

help the firm in attracting new potential buyers which will result in raising sales or
profitability of company to great extent.
 Process: This element plays significant role in business unit, when firm aims to reach to
mass audience and raise its profit then it is essential to have smooth process so that
consumers can reach to the firm easily. Hence M&S will take assistance of website, as
customer care executives will make contact with customers and their quarries will be
resolved immediately. This would help the firm in creating positive image in the mind of
consumers and influencing their buying decision as well.
 People: Firm will develop health relationship with its employees and will provide them
rewards for their great efforts. Attractive pay scale will be given to them and they will
receive special training which will make them able to fulfil customer demands quickly.
This strategy to handle people will give positive result to the organisation and firm will
be able to accomplish its marketing objective successfully.

SWOT analysis
Strengths Strong brand image: M&S has strong brand image as it target potential segment.
Specially company has a good brand image in clothing industry and customers trust the
brand. As company is introducing leather bags, due to its powerful brand image it will be
easy for them to market its products and satisfy them. Customers expect quality products
and company is able to provide customers with quality products.
 Multichannel presence: Company sells its products through both online, offline and offer
franchising. Company has a strong customer base as its customers are across the world. It
is beneficial for company to offer new products like leather bag under its brand name as
the brand is successful in making customers familiar with its name and string brand
image.
Weakness Poor supply chain: One of the major weakness of company is that it has poor supply
chain scalability, M&S are trying to offer their leather bags globally but it is difficult for
them to supply its products at large scale (Zhao, Liu and Xue, 2019). Company has also
tried to offer its products through online store but suppliers were unable to deliver at
some location which may affects business reputation.
 Increase in the labour cost: M&S has a drawback of producing products through old
techniques instead of using new techniques. Company utilizes the technology or effective
used of manual work which in turn increases the cost of labour.
Opportunities
 New segments: M&S has an opportunity to enter in new segments as there is a demand of
leather nags which are trending in the market. Company should invest in this so that its
market share increases and profits can be maximized. Company can split the customers
on the bases of their interest and offer products accordingly. It will be beneficial for
company to diversify its business in different segments.
Threats
 Competition: Due to increase in the competition in every part of business has made it
difficult for the company to sustain in the market and gain competitive advantage. There
are many competitors of M&S which has made it difficult for company to maintain its
1

market share. Company need to bring innovation in the products or introduce new
products to reduce risk and frame strategies to attract customers (Santopuoli, Marchetti
and Giongo, 2016).
PESTLE ANALYSIS
With the help of pestle, M&S can determine all the macro environmental factors
influencing its business operations related to coming up with new product i.e. Leather bags in the
market place:
 Political – Changes in government policies, taxation rules plays important role in
affecting marketing strategies of M&S. Also, due to high cost of structure in the global
market it has negatively affected the initiatives and marketing programmes as undertaken
for introducing new product in the market.
 Economical – Discounted pricing strategies as adopted by its rivalry firms for capturing
market share has resulted in loss to M&S as it always focuses on delivering quality
products to its customers across the globe (Rastogi and Trivedi, 2016). Thus, it makes the
product more expensive as compared to others.
 Social – For capturing current market share and opportunities, it is very much important
for Marks & Spencer to formulate effective strategies for new segment of markets. By
considering the ethics, cultural norms and beliefs of the society, M&S can design its
product as per these factors.
 Technological – By using better improved techniques, business processes M&S can
strengthen its business profits as well as market share by delivering quality product at
reasonable pricing. This will assist in decreasing the overall cost of production along with
increase in customer as well as market base.
 Legal – For gaining competitive advantages in the market, it is very much essential for
every business organisation to make compliance of every legal as well as regulatory
frameworks (Sammut ‐ Bonnici and Galea, 2015). M&S before launching its product in
the global market has to understand and adhere to all principles and regulations as laid
down by such market country.
 Environmental – Before coming in market with new product, considering environmental
friendly and sustainable aspects of it can help M&S in gaining competitive edge. By
2

delivering environment friendly product to environment conscious customers, it can help
M&S in building customer loyalty base as well.
Strategy & Segmentation, Targeting and Positioning
Strategy & Segmentation – M&S bifurcate its customer group and market into segments i.e. on
the basis of age, sex, income, geographical area, demand level so as to remain competitive in the
market place at the global level. This helps M&S in making in depth understanding of its
customer demand and thus can deliver product accordingly with its main aim of attaining
customer satisfaction and improvement if required any.
Targeting – By understanding the targetted market and customer segment, M&S can analyse
threats and opportunities associated with new product launching (Zhang and Wang, 2019). Thus,
it helps in making focus on right section of the market thereby formulating strategies for
successful implementation of such product in the market.
Positioning – With the help of marketing mix, M&S can position its new product i.e. leather bag
in the market where it wants to capture share and customer. By making emphasis on price, place,
promotional as well as product features M&S can make improvement in its own strategies and
business processes accordingly as per the customer demand.
Marketing program
Marks and Spencer has its own its own in-house brand for apparels which are meant for
everyone including men, women and children. These products are of premium quality but the
company has kept its prices between medium to high range. Marks and Spencer face rivalry in
the consumer market. But company is having very strong market image that will help it to
promote its product in market effectively. Strong competition means limited market share and in
order to increase its mass-market consumption, the company has adopted a competitive pricing
policy (Boscagli, M., 2019). Marks and Spencer have adopted a dynamic pricing policy and
during off seasons, festive seasons and seasonal time it offers incentives and discounts to its
customers. This results in two-way benefit. The company is able to clear its old stock and the
incentives help in larger sales figures. Also the it will build build positive brand image of the
company with the new products. (Dewi and Darma, 2019). Subsequent, for organisation to
succeed a Marketing Communication strategy has to be planned and several recommendation
and solutions are suggested for M&S. Communication strategy will help the company to analyse
the possible requirement of the products that are essential for meeting the the requirement and
3

needs of business. Program will be successful as all the factors that might affect the business are
properly undertaken by company. Plan will be implemented across the nation and promotional
strategies will help to bring awareness in market.
Competition analysis
Basis Marks and Spencer Tesco Aldi
Product The products of mark
and Spencer are Per
Una, Autograph,
Limited Rosie
Blue Harbour
M&S Collection
M&S Energy .
The products of Tesco
are
Supermarket,
Hypermarket,
Superstore,
Convenience shop.
The products of aldi
are Grocery,
Household Essentials
(Dewi and Darma,
2019).
Price strategy mark and Spencer use
prices penetration
strategy in which the
company tries to keep
the price lower then its
competitors to get
competitive
advantages in the
markets (Boscagli, M.,
2019).
Tesco uses premium
price to capture the
larger part of the
market and build
customer by providing
quality of services.
The customer will
purchase product by
quality standards and
pay higher price then
usual prices in market.
Aldi sales its product
by using discounting
pricing policy. Due to
which the customers
get attracted towards
the product due to its
low price product but
the quality of product
is lower then the usual
product.
New technology mark and Spencer
adopts higher level of
technological which
increases its
productivity and
economies of scale in
Tesco uses new
technology at medium
level because it invest
lower amount in the
field of marketing.
Aldi uses the
technology at lower
level then other
competitors in the
market because
company does not
4

the markets. invest in the fields of
advance technology
adoption.
Promotion mark and Spencer
promotes it product by
using digital marketing
tool at higher level due
to which people from
all over the world gets
attracted towards the
product and services.
Tesco the company
uses less digital
marketing tool it tries
to sale more through
advertisements like
hoarding, boarding,
banners, etc.
Aldi uses less
advertisement
promotional tool as it
makes the organisation
to have less
competitive capability
in the market from
other companies.
Quality The company provides
higher quality product
then the normal
company provides its .
Tesco focuses less on
the quality standard of
the product due to
which consumers gets
less satisfied with the
product and services.
Aldi gets satisfied with
selling low product
price due to which it is
not able to build
customer trust for the
product and services
(Britt and et.al., 2019).
5

REFERENCES
Books and Journals
Rastogi, N. I. T. A. N. K. and Trivedi, M. K., 2016. PESTLE technique–a tool to identify
external risks in construction projects. International Research Journal of Engineering and
Technology (IRJET). 3(1). pp.384-388.
Sammut ‐ Bonnici, T. and Galea, D., 2015. PEST analysis. Wiley Encyclopedia of management,
pp.1-1.
Zhang, J. and Wang, R., 2019. Research on the Marketing Strategy of New Energy Vehicles in
SL Company. American Journal of Industrial and Business Management. 9(2). pp.306-314.
Boscagli, M., 2019. Competitive strategy analysis in the food system. CRC Press.
Britt, W. and et.al., 2019. National Agri-Marketing Association Team.
Dewi, M.V.K. and Darma, G.S., 2019. The Role of Marketing & Competitive Intelligence In
Industrial Revolution 4.0. Jurnal Manajemen dan Bisnis. 16(1). pp.1-12.
Zhao, J., Liu, H. and Xue, W., 2019. PEST Embedded SWOT Analysis on China's E-Commerce
Industry Development Strategy. Journal of Electronic Commerce in Organizations (JECO).
17(2). pp.55-68.
Santopuoli, G., Marchetti, M. and Giongo, M., 2016. Supporting policy decision makers in the
establishment of forest plantations, using SWOT analysis and AHPs analysis. A case study
in Tocantins (Brazil). Land Use Policy. 54. pp.549-558.
Online
PESTLE Analysis. 2019. [Online]. Available through:<https://freepestelanalysis.com/pestle-
analysis-of-mark-and-spencer-ms/>.
6