Marketing, Resource and Strategic Management for M&S

This report provides a comprehensive analysis of Marks and Spencer's (M&S) marketing strategies, resource management, and strategic planning. It begins with an executive summary and introduces the importance of marketing in enhancing product value, using M&S as a case study. The report includes a value chain analysis, exploring primary and secondary activities, and identifies potential barriers to entering the Asian market. It also details methods for monitoring the effectiveness of a developed plan, such as GAP analysis, consumer satisfaction evaluation, demand analysis, and financial analysis. The report proposes a new product launch (retro wear) and suggests the use of the Ansoff matrix for strategic planning, including market penetration, product development, market development, and diversification. The report covers various aspects of the business, making it a valuable resource for students studying marketing, resource management, and strategic planning.

Marketing, resource and
strategic management
Submitted by Dhanushka Rangajeewa

TABLE OF CONTENTS
INTRODCTION..............................................................................................................................1
EXECUTIVE SUMMARY.............................................................................................................1
TASK 1............................................................................................................................................1
Enclosed in PPT..........................................................................................................................1
TASK 2............................................................................................................................................1
1.1................................................................................................................................................1
1.2................................................................................................................................................2
1.3................................................................................................................................................5
2.1................................................................................................................................................6
2.2................................................................................................................................................7
3.1................................................................................................................................................9
3.2..............................................................................................................................................11
3.3..............................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
3.2..............................................................................................................................................20
3.3..............................................................................................................................................22
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

INTRODCTION
Marketing plays a crucial role for enhancing the value of a product or services. It
provides assistance to companies for gaining the attention of customers. In addition to it, this is
required for the firm to make effective strategies so that marketing objectives can be attained
effectually and within stipulated period. For better understanding of the subject, Marks and
Spencer (M&S) has been taken into consideration. A strategic management should be adopted in
a business because the several traits are there which laid emphasis on the working of the business
which is a great threat to the persons delivering it. It is one of the multinational retailer in UK
where the company specialises in offering luxury foods products, home products and clothing. It
is a public limited company which has established in 1884 by Michael Marks and Thomas
Spencer. The renowned company has around 83,069 employees who are presently working in the
firm. However, existence of the firm is in different part of the world which resulted in 1382
stores. In context to this, the cited organization also became the first British retailer who made
pre tax profit more than £1 billion.
EXECUTIVE SUMMARY
Present report is prepared with the purpose of analysing marketing situation of M&S.
This document is also going to include appropriate tools and techniques to develop a new
product by Marks and Spencer. In addition to it, the prepared document also contains the use of
SMART objectives of the company. Further in this report the strategic management of mark and
spencer has been studied through which effectiveness and efficient capabilities of the
organization is measured which in turn gives a mobile power to the persons working their. These
objectives have helped the company to identify the process of implementing changes. In this
report, new product is launched which assisted the firm to enter into the Asian market.
TASK 1
Enclosed in PPT
TASK 2
1.1
M&S is one of the major retailer in food and merchandise industry. The firm has
completed its 129 years where they initiated business from single stall to a multinational
1

company. As per the existing business plan and strategies, the company focuses on assisting
communities, reduction in wastage, focusing on recycling of products. In addition to it, the cited
firm aims at sustainable clothing and other products. The company has given great importance to
the corporate social responsibilities in order to contribute towards society. In context to this, the
organization is focused on improving its quality and tries to make shopping easier. According to
current strategy, the venture also focuses on reducing carbon emission occurs due to production.
In order to develop new product, the cited firm can adopt new product development
strategy. However, the process initiates with idea generation, screening, concept development,
business analysis, test marketing and commercialization.
1.2
M&S is one of the leading brand in UK where the organization has ample of resources
such as financial, physical, human etc. The resource availability and possible barriers of the
company can be analysed with the help of Value chain analysis method. Mainly, the cited
method is consists of various activities in the process which is stated below (Morgan, 2012).
Primary activities
2

Inbound logistics: The management of the cited organization receives raw material or
inventories from its suppliers. Initially, the company has restricted itself from taking raw
material from English suppliers. Further, the firm started receiving material from the different
countries. It has made good relations with the suppliers so that good quality of raw material can
be attained by the firm. It helps in getting raw material at optimum cost for the operations of the
company. It leads to help in effective production of goods and services by the firm.
Operations: In terms of operations, it is found that the firm adopts direct selling of the home
products and other goods. However, the same process of distribution is being followed by the
organization. The organization has adopted machines for the development of product and whole
process has converted in electronic and smarter way. It has assisted the company to maintain
transparency in the operations. In context to it, the stated process will aid the organization to
lower down the cost and also at minimum time (Ward and Peppard, 2016).
Outbound logistics: firm makes sure about the fast delivery of the products. M&S offers fast
services to the consumers if they order online products. It has increased the demands of the
products of the mentioned organization. In addition to it, the management has offered effective
training to the employees so that duplication of work can be eliminated.
Marketing and sales: Sales and marketing seems to be the most important factor that is
considered by the management. In this competitive era, the firm tries to achieve demand and
needs of the customers. The cited organization has established several outlets all over the world.
However, the firm focuses on the strategies plans and policies which helps in contributing in the
success of the firm. In addition to it, with the use of effective measures the cited company can
3
Illustration 1: value chain analysis
(Source: Lasserre, 2012 )

increase its sales. Different marketing and advertising techniques can be adopted by the
company. It will help the organization to enhance its market shares at global level.
Services: The organization aims at providing fine services to the customers. It is seen that firm
has friendly working environment, quality of products and effective communication within the
organization. It leads to enhance the value of the products of the company (Garrigos-Simon,
Lapiedra Alcamí and Barberá Ribera, 2012).
Secondary activities
Infrastructure: In terms of physical capabilities of the company it has good infrastructure where
the designs of outlets is uniform. The locations of these stores are generally near to the customer
reach. It helps the company to attract large number of customers towards its products.
Human resource management: The organisation has skilled and qualified employees at their
workplace. The human resource manager of the firm makes sure effective recruitment and
selection process in the company. The management also focuses on the effective training and
development programmes for the subordinates. In addition to it, (Proctor, 2014).
Technological development: M&S has adapted various measures so that product quality can be
maintained. In addition to it, the firm keeps implementing the required changes that helps them
to offer required product quality. It is seen that the operations of the company has become
smarter by using electronic form. With the use of this the staff is connected with each other. It is
that, every departmental store of the company is digitized and computerised cash registers. In
addition to it, the company uses loyalty cards in order to make payments.
It has suggested above that the firm can enter into the Asian market to grow and expand
effectively. However, the company may face certain barriers while opening new stores in Asian
market that are given below (Morschett, Schramm-Klein and Zentes, 2015).
Laws and regulation: This can be one of the major barrier in entering into Asian market. The
laws and regulations of Europe and Asia are purely different. However, M&S may face issues in
terms laws and policies of India and China. In addition to it, changes in norms of countries may
affect the business of M&S.
Culture: This can be another barrier that can be faced by the company. Here, the company face
issues in the terms of ethnics wear, language and taste and preferences. It is seen that Asia comes
under Middle East where the diversity in culture is totally different from UK. To understand the
needs and demands of the consumers, it is necessary for the firm to hire employees from the
4

local market for their stores. It can become a barrier for the firm as it is not possible to overcome
each and every need.
Income level: It is seen that India is a developing country where the living standard of
consumers is tended to rise. In context to it, higher income people can only afford the products of
M&S. It may happen that the firm may not able to earn appropriate amount of profits (Mok,
Sparks and Kadampully, 2013).
Communication: This can be the another issue that can affect the business in Asian market. The
language used in India and China is totally different. The firm can try to opt common language
but its not possible to gain the attention of all the customers. It is important to use effective
communication techniques in order to deliver the required information efficaciously to the
customers.
1.3
In order to monitor the effectiveness and success of a developed plan, the cited company
can adopt various measures.
GAP analysis: This can be the most useful method to monitor the effectiveness and success of a
business plan. With the help of this method, difference can be analysed between the actual and
estimated performance of the business. This analysis is been taken into account to measure the
performance of business through which effective techniques can be developed also strategic one.
For the same, It will help the Mark and Spencer will be able to compare the needs so that
corrective actions can be taken by the management. It leads to improve the methods and
techniques that is adopted by the company. By considering this tools, the management will be
able to allocate the resources effectively. It can help into reducing the wastage and use the same
for the future projects (Hollensen, 2015).
Consumer satisfaction: Evaluation of plan can be done with the help of analysing the consumer
satisfaction by taking feedbacks. The management of the firm can ask for feedbacks by the
customers in order to know their satisfaction level. Most important purpose of business is to
satisfy the customer and that needs to be achieved by the said organization. Analysing this factor
can help the company to identify the level which has maintained by the company. In addition to
it, the organization will be able to provide the best for future context.
5

Demand analysis: Analysing the demand can help the firm to monitor its progress. It will help
the company to determine the willingness of customers towards the product. Demand analysis of
the firm will make them show whether the product manufactured by them has demand or not.
This measure will assist the firm to plan promotional activities (Evans, Stonehouse and
Campbell, 2012).
Financial analysis: As per this, the financial statements of the company are analysed. With the
help of this, the revenue earned can be identified. However, the company can consider this
analysis so that proper monitoring can be done effectively. With the help of this analysis, the
management of the firm will be able to assess the viability and stability. On that basis the firm
will be able to make comparisons between actual and standard ones. In addition to it, the
deviations can be eliminated and corrective measures can be taken into consideration.
2.1
The cited organization is going to launch retro wear for the customers. This will be for
the age group of 20 years to 60years. Adoption of this idea will help the company to offer
something new to the customer. In context to this, the firm can adopt ansoff matrix in order to
plan for the new product. With 5the help of this method the managers of the company will be
able to set missions in order to design the product. Here, four growth alternatives are stated
below.
Market penetration: In this strategy, the management of M&S can use its existing policies and
procedure in order to grow and expand. This process will help the company to increase its
market share. This can be done with the help of decreasing price of products, enhance in
promotion and distribution etc.
Product development: The company is going to launch its new i.e. retro wear. So the cited
organization can adopt new product development strategy in order to gain market share. For the
same, the firm will be required to conduct the research and development process. It will help the
company to analyse the taste and preferences of the customers. In addition to it, the firm can take
acquisition of the rights of someone else product.
Diversification: In this process, the company can grow with the help of introducing new
products in new market. As the firm is adopting retro wear for the consumers, the firm can
launch this in India especially for women. It is seen the company can expand its operations in
6

Indian market. So this product can be launched in Asian market which leads to increase in the
profitability of the firm.
Value chain analysis
M&S is one of the leading brand in UK where the organization has ample of resources
such as financial, physical, human etc. The resource availability and possible barriers of the
company can be analysed with the help of Value chain analysis method. Mainly, the cited
method is consists of various activities in the process which is stated below (Morgan, 2012).
Primary activities
Inbound logistics: The management of the cited organization receives raw material or
inventories from its suppliers. Initially, the company has restricted itself from taking raw
material from English suppliers. Further, the firm started receiving material from the different
countries. It has made good relations with the suppliers so that good quality of raw material can
be attained by the firm. It helps in getting raw material at optimum cost for the operations of the
company. It leads to help in effective production of goods and services by the firm.
Operations: In terms of operations, it is found that the firm adopts direct selling of the home
products and other goods. However, the same process of distribution is being followed by the
organization. The organization has adopted machines for the development of product and whole
process has converted in electronic and smarter way. It has assisted the company to maintain
transparency in the operations. In context to it, the stated process will aid the organization to
lower down the cost and also at minimum time (Ward and Peppard, 2016).
7

Outbound logistics: firm makes sure about the fast delivery of the products. M&S offers fast
services to the consumers if they order online products. It has increased the demands of the
products of the mentioned organization. In addition to it, the management has offered effective
training to the employees so that duplication of work can be eliminated.
Marketing and sales: Sales and marketing seems to be the most important factor that is
considered by the management. In this competitive era, the firm tries to achieve demand and
needs of the customers. The cited organization has established several outlets all over the world.
However, the firm focuses on the strategies plans and policies which helps in contributing in the
success of the firm. In addition to it, with the use of effective measures the cited company can
increase its sales. Different marketing and advertising techniques can be adopted by the
company. It will help the organization to enhance its market shares at global level.
Services: The organization aims at providing fine services to the customers. It is seen that firm
has friendly working environment, quality of products and effective communication within the
organization. It leads to enhance the value of the products of the company.
Marketing testing is a procedure which is a mixture of qualitative and quantitative
methods which can result in analysing consumer response to get an idea about the products. In
addition to it, an organization can consider this process to communicate with the customers in
order to identify their attitude towards the designed product. However, the cited organization is
going to expand itself in Asian market where the company needs consider market testing before
entering into the new market. With the adoption of the two techniques the firm will be able to
analyse the actual circumstances of the new market. In context to it, the cited organization can
8
Illustration 2: value chain analysis
(Source: Lasserre, 2012 )

consider two methods such as stimulated test market and focused grouped market testing. Both
the methods are stated below (Truss, Mankin and Kelliher, 2012.)
Stimulated test marketing: In this method of testing, the reactions of the customers are
analysed with the help of offering a sample of product or services. For example, M&S aims to
explore itself in Asian market where the company can offer a product to a particular state of
India like Kerala. In addition to it, the firm can provide the product and ask for the feedback by
the customers. This method can be useful for pre planning and demand forecasting. The positive
responses of the customers will help the company to test the market group. If the testing
department of the firm finds difference between the forecast and launching then they have ample
of time to take corrective actions like change in strategy or market plan. In addition to it, this
method consist of experimenting by using different methods so the firm will be able to allocate
its budget (Wang and Feng, 2012.)
Focused group market testing: It is a form of qualitative market research where the perception
and opinion of the people are asked. The company ask for the product that is being offered to
them. For an instance, M&S is a retail organization where it offers variety of products. To test
the market, the company has selected a team of 20 people of Asian market. They are representing
as the actual market where the company has offered a cream to the Indians. For 10 days they
have used it and further the research team has asked about their feedbacks on the basis of
interview and questionnaires. On other side, there are some disadvantages of this method is that
it may not give in depth idea about the customer ideas. Whereas, passing questionnaires to the
focused group can be expensive for the cited organization.
In order to evaluate the new product, Ansoff matrix has remained effective for the
company. With the adoption of this tool, the firm is able to analyse and identified the needs and
demand of the product. As per the requirement the production department of Mark and Spencer
has introduced the same. This has remained helpful for the company to identify the product to be
produced. In context to it, this technique has helped to analyse the expected risk in order to move
in a certain direction. As a result, the firm decided to expand its operation in Asian market. On
contrary to this, ansoff matrix it theoretical model where it may affect the practical aspect.
2.2
To introduce new product or service in the market the company needs to make sure about
the ethical and CSR issues. As the company is going to launch retro wear in UK and in the Asian
9

market. There are some ethical dilemmas that can be faced by the production department of
M&S. It is a duty of the organization to offer the products as per needs and demands of
customers. They make sure to fulfil the satisfaction level of the customers at their best possible
ways. There are some factors that are required in a demanded product such as dependability,
service life, maintainability and the safety of products. As per the given study, the cited
organization is about to open its stores in Asian market where the firm may face some ethical
issues that are stated below.
Fundamental issues: As per this issue the management of the firm needs to maintain trust and
integrity among its customers. Whereas, integrity includes the business affairs must be conducted
with honesty. The company must make sure to treat the customers effectively where the firm
avoid fake commitments to them. The cited organization can remain successful by maintain trust
and integrity with the customers. It will assist the firm to get desired results with the help of
positive relations. As the company is going to enter into the new market, this should be the prime
objective of the firm to gain customer satisfaction and trust. The company needs to offer the
same as they advertise and promote. (Rosenbaum-Elliott and et.al., 2015.)
Diversity issues: This is another ethical issue where the establishment must aware of it. The firm
is targeting Asian market for its new stores where it requires skilled and talented customers to
run its stores. However, the cited organization must fulfil ethical responsibilities in order to
develop diversity. However, diversity initiates by hiring divers employees. The firm must
maintain equal opportunities among the subordinates. The company should adopt the norms as
per the international law because the company will hire local employees and some of UK
employees. In addition to it, the firm should implement the laws that are related with the Asian
law.
Decision-making issues: the organization must make sure to take ethical decisions in terms of
both the employees and customers. The management requires focusing on protecting the
subordinates and the consumers. The company is going to recruit local employees where it is
necessary for them to feel integrated with the organization. There decision making should be in a
way that it uplifts the interest of both the employees and the customers (Kotler and et.al., 2015.)
Compliance and government issues: This is the major issue that is being faced by the
organization specially at the time of working at international level. The firm needs to take care of
the environmental laws and state laws of the economies. The establishment should follow the
10