Marketing Assessment: Analysis of Marks & Spencer's Strategies

This report presents a comprehensive marketing analysis of Marks & Spencer (M&S), a UK-based retailer. It begins with an introduction to marketing and then performs a marketing audit, including SWOT and PEST analyses to evaluate M&S's internal and external environments. The report examines M&S's current market position and marketing strategies, utilizing the marketing mix (product, price, place, promotion, process, people, and physical evidence) to assess its performance. It further delves into market segmentation, proposing demographic and psychographic segmentation approaches to target customers effectively. The role of selected customer groups in driving business growth is discussed, and various market strategies are analyzed, with a focus on diversification using the Ansoff model. The report concludes with a summary of findings and recommendations.

INTRODUCTION
TO MARKETING
ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Marketing audit of current business performance.......................................................................1
Organisation's current position and marketing strategy in market..............................................4
Market segmentation to target customers...................................................................................5
Role of selected customer groups in growing business within market place..............................6
Market strategies.........................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is referred as the procedure in which business organisations gets people
interested in the products or services. It is carried out with the help of market analysis and
research so that interest of ideal customers can be acknowledged in a proper manner (Bacik,
Gavurova and Fedorko, 2015). It is a business process in which strong relation with customers is
formulated to earn high profits. This assignment is based on Marks & Spencer which is a UK
based manufacturer and retailer dealing in cloths, home products and food items. Company is
headquartered in Westminster, London. This assignment is going to include about market audit
so that current performance of business is acknowledged in a proper manner. Current market
strategy and position of company is discussed along with appropriate market segmentation.
Beside this, tactics to grow business are mentioned. Also, understanding of buying behaviour is
demonstrated and justifications for chosen market strategy is given in brief.
MAIN BODY
Marketing audit of current business performance
Marketing audit is an important framework which is used by organisations to assess their
marketing objectives and targets in an appropriate manner. With the help of market auditing,
internal and external aspects that can impacts the business environment can be acknowledged in
a proper manner (Baker, 2014). In order to acknowledge different factors that impacts M&S,
market audit is performed below:
SWOT analysis
SWOT is a framework which helps the company in identifying their strengths and
weaknesses so that required modification or changes can be carried out in a proper manner. This
business tool will benefits M&S in acknowledging their potential threats and opportunities so
that business can achieved expected results without any complexities.
Strengths Weaknesses
 Company offers high end value
products and services to their
customers. Due to which, company has
a clear brand image in the mind of
existing and potential customers.
 Company has a successful presence in
US, Europe and UK but in case of
African and Asian continents they are
not able to gain attention of customers
in a positive manner.
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 M&S has also introduced their private
labels like North coast, Per Una, Indigo
etc. due to which brand recall of
company has improved considerably.
 Company invests heavily on logistics,
IT and systems due to which they
posses a robust e-commerce
infrastructure. This benefits them in
achieving high sales and revenues.
 Consumers which are using products of
M&S exhibits low level of satisfaction
due to ambiguous return policies and in
-store experience (Engelen and Brettel,
2011).
 Company has a poor scalability in
supply chain. Even company is trying
to provide global access through online
stores but their delivery and supply
chain processes are not efficient.
Opportunities Threats
 Company can formulate their
specialised websites where different
products such as clothes, food products
and home items will be offered in
accordance with the product range of
customers (De Mooij, 2018).
 M&S can expand their presence in
Asian and African countries so that
they can get access to large customer
base. This will help them in becoming
global leader.
 Due to discounted price and
standardised quality, other retail stores
in and outside UK such as Zara, H&M
etc. are giving tough competition to
M&S.
 Company is operating at global level
due to which business is exposed to
different political and legal procedures.
Constant change in these policies can
impact M&S in a negative manner.
PEST framework
PEST analysis is a business tool which assists an organisation in identifying those
external factors that can influence business and its operations in a considerable manner. This
analysis will include information regarding political, social, technological or economical aspects
of a nation in a proper manner. In context with M&S, PEST analysis is mentioned below:
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 Political factor: These factors are related with the trade tariff, tax rates and stability of
government of a nation. UK is a politically stable nation but due to Brexit, country faces
some uncertainties. Brexit has impacted large organisations such as M&S in a negative
manner. Tax rates in UK are less which is a positive aspect for M&S as it will help the
company in saving their profits and revenues. Increment in tax rates or tariffs can impact
M&S in a negative way (Dholakia, 2012).
 Economic factor: These factors are related with the GDP, growth rate, inflation and
interest rate, purchasing power and income of people in a nation. UK is an economically
stable country where people earns disposable income. Due to this, people in UK are
capable to earn high priced and standardised products which are offered by M&S. High
purchasing power of people promise good sales and revenues to M&S. Due to great
recession of 2018, inflation rates have increased which can impact sales of M&S in a
negative manner.
 Social factor: These factors relate with the attitude, opinion, belief and preference of
people which are living in UK. People in UK are educated, modern and financially stable
due to which they prefer to buy luxuries and standardised products which will help them
in showcase their standard (Gopaldas, 2015). Products offered by M&S denoted class and
status due to which it is beneficial for company to operate in UK. Change in preference
and opinion of people in UK can impact M&S in a bad way.
 Technological factor: These aspects of Pestle framework is concerned with innovation
and technological advancement. UK is a technologically advanced country where people
prefer to perform their basic activities through digital media. It is essential for M&S to
update their manufacturing, delivering and product ordering technology or machines on
regular basis. This will benefits the company in satisfying their needs and desires in a
proper manner. If company will not update their technology, customers will feel reluctant
in trusting their services.
Ansoff model:
Ansoff model is useful to analyse the whole portfolio of business. M&S operates its
business in various countries so for development and growth it is necessary to apply ansoff
matrix to analyse whole market. Adoption of suitable strategy by M&S: Diversification is most
suitable strategy that must be adopts by M&S as it assist them in expanding business operations
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on a large scale by developing new and innovative products in marketplace. It help company in
increasing its existing market share and revenue (Wedel, and Kannan, 2016).
Organisation's current position and marketing strategy in market
To acknowledge current business and marketing strategies of M&S along with their
market position, manager of firm can use marketing mix. Marketing mix is a tool which will
benefits the company in evaluating their current strategy and position in marketplace (Jung and
Soo, 2012). Different elements of marketing mix will benefits the company in acknowledging
their current market position in a proper manner. Elements of marketing mix are mentioned
below:
 Product: M&S is a renowned retailer of UK which have a wide product portfolio
covering various items for kids, women and men. In case of women, products offered by
company are cashmere, cardigans, blazers, jeans, footwear, handbags, jewellery, sun
glasses etc. Different products for men and kids are also offered by company along with
home accessories like furniture, lamps etc. Company also offers food and drinks such as
starters, lunch, dinner, wine to their customers.
 Price: Organisation uses competitive pricing strategy in which rates of products are
decided after acknowledging the price charged by rivals. In-house brand of company are
priced medium to high so that maximum number of people can buy them. In order to
offer their luxurious and expensive product, company uses premium pricing strategy.
This helps the company in popularising their products among elite class of UK
(Moutinho and Huarng, 2013).
 Place: M&S is a global brand which is successfully operating more than 1200 stores in
worldwide. In UK, company have more than 800 stores. Products of company are easily
available for customers at both outlets and online website. Beside this, company offers
home delivery in domestic market due to which people can buy them easily.
 Promotion: In order to promote their services or products, M&S use both traditional and
online way of advertising. Company use TV ads, print media, newspapers and pamphlet
to sell their products in large number. To promote it seasonal sale, company also offers
heavy discounts to their loyal customers.
 Process: Outlets of company are easily found at mall and sub urban areas. These stores
are well themed and divided into different sections like home product, gifts, clothing
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etc. checkout counter is also present at every floor for the convenience of customers.
Consumers can also go for online purchase to save their time.
 People: Company posses more than 1200 stores in global context where more than 83000
employees are working. Organisation offers special care and attention to their employees.
In this context, company uses competitive payment policy so that employees can be
retained in company for a longer time period. Employees are also offered monthly
rewards and benefits in accordance with their performance (Palmer, 2012).
 Physical evidence: Outlets and stores of M&S are their main physical evidence. In-house
brands of company and their online website is also important evidence of company.
From above performed marketing mix, it can be said that company is used impactful
market strategy to earn maximum profits. Also, market position of company is good but in can
be improved further with the help of adopting different marketing strategies.
Market segmentation to target customers
There are different ways by which a company can segment their customers in a proper
manner. This will allow M&S in targeting them in a proper manner. Offering right product to
right customers will benefits the company in attaining high revenues and profits so that
competitive advantage over rivals can be achieved desirably (Shaw, 2012). There are different
ways under which customers can be segmented such as on the basis of geography, demographics,
behaviour or psycho-graphics. In context with M&S, proposed set of market segments is
mentioned below:
 On the basis of demography: Manager in M&S can segment their customers in
accordance with demography. Demographics include different aspects such as age,
gender, income, education etc. Concerned organisation can target customers on the basis
of income. Company is going to target high class people for their premium or luxurious
products and middle class people for their economic pricing products.
 On the basis of Psycho-graphics: Under this aspect, customers can be segmented in
accordance to their lifestyle and living standard. M&S offers high priced products to their
customers, segmenting on the basis of psycho-graphic will benefits the company in
targeting rich class which will eagerly buy their products. This will assists the customers
in showing off their high standard in a proper manner (Anda and Temmen, 2014).
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Role of selected customer groups in growing business within market place
In accordance with the above mentioned customer segments, it can be said that company
is mainly going to target high class people which will be able to buy their expensive and
standardised product without facing any financial shortage. Company will offer them high
quality products due to which maximum people which will be buying their product will belong
to high class. This will enhance the sales and revenues of company in a considerable manner due
to which they will be able to earn high profits without facing any difficulty. In this manner,
business of company will grow as per expected results (Ding, Eliashberg and Stremersch, 2016).
Market strategies
Marketing is procedure of building effective relationship with the customer by using
effective techniques such as advertisement, promotions, distribution channels, and many others.
M&S are formulate various marketing strategies to increase the sales by influencing the buying
behaviour of the customer's. There are various marketing strategies that are as follows:-
Product description:
It includes the categorisation of product price, features, quality which are useful for the
company to sell its products to the targeted customer's. M&S is globally reached company
which basically deals with the luxury food products, clothing and home products. It is very
famous for its clothing because it almost acquire 11% of women wear market-share. It also
focuses on the innovation and developing new products to grab market share also to increase its
competencies against their competitors. M&S also used different techniques of promotions to
spread awareness of the particular product among various customer in the market. These
techniques includes social media marketing, TV advertisement, hiring celebrities and so on
(Seetanah and Sannassee, 2015).
At existing time period, M&S starts focusing on different financial services to acquire
profitability as well as market-share. M&S is focusing on the two different segments which are
psycho-graphic and geographic so to capture large market share company provide their cloths
and luxurious products with affordable price to the middle and lower middle class customer's. So
it boost the overall brand image as well as profitability of the company.
Brand image:
Brand image is basically a perception of the customer towards the particular existing
market brand. M&S maintained the overall place of the companies product which attract the
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customers and also build effective brand image of the company. There are various factors affect
the brand image such as product packaging, word of mouth, publicity, advertisement and other
tools of promotions. If customer's are fully satisfied with the company products then it will lead
better and positive brand image of the company its all depends on the quality of product which
are offering. Where as dissatisfaction leads to the poor brand image among the customer's which
negatively affects the productivity as well as image of the company. So M&S already build
positive and better brand image among the customers by providing better quality products to the
customer's.
Pricing Objective strategy:
It is very important strategy used by the company which is used to capture market. This is
can attract the customer and also transfer them to the competitors products. So pricing strategies
are considered as base of the organisation because whole profitability of the company is depends
upon the pricing of the products which they are offering to the customers. So setting proper
pricing strategy is very important for the organisation to capture huge customer. M&S uses
proper as well as effective strategies relating to its pricing through which it has earned large
customer base and profitability.
Distribution strategies and objectives-
Mark and Spencer provides large numbers of product and services at various location to its
customers so it very necessary to proper analyse the channels of distribution. Some types of
distribution are given below:
Indirect distribution:
It is the through which manufacturer connect with its lower channel, when company produced
particular product then it provides to the customer with the help of retailer. Through indirect
distribution M&S provide their products more effectively to geographically scattered customer's.
Direct distribution:
In this manufacturer of the company directly provide the products to the customers without
involvement of any intermediaries. With the help of this channel M&S capture their customers
more effectively by providing proper service because they operate business at large scale. It is
also helpful in building relationship with customers (Piercy, 2014).
Intensive distribution:
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This is very essential tool which is utilized by manufacturer to formulate different strategies by
analysing the whole marketplace. The marketing manager of M&S collect all the necessary
information regarding product demand according to the region which is helpful for the
manufacturer.
Selective distribution:
In this channel manufacturer increase its productivity by delivering effective quality product and
services to the customer's. M&S identify the region where the demand of product is high and
provide its product in those region to increase its profitability (Hall, 2014).
4P's of Marks and Spencer
Product: M&S is a well known brand among the people in whole of the world. It also
provide reasonable and eco-friendly products to its customers. They also deals with various
products such as clothing, beauty,etc.
Place: In various countries M&S operated its business. In 1999 enterprise also expand its
business by selling its products online due to which company capture more customer's.
Price: M&S provide various discounts and offers to its customer's because M&S believes
that to gain customers loyalty fair pricing is necessary.
Promotion: M&S believes in effective marketing which is very useful to promote their
products and services such as social media and other.
CONCLUSION
From above mentioned report, it has been concluded that marketing is an important
tactics which is performed by business firms so that their revenues and profits can increase in a
considerable manner. With the help of market audit, external and internal factors impacting
business can be acknowledged in a proper manner. Marketing strategy of a company helps them
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in sustaining a strong presence is marketplace. By segmenting and targeting right customers,
company can achieve high revenues and profits. By adopting right market strategy, a business
firm can gain attention of maximum number of customers so that organizational goals and
objectives can be attained in a proper manner.
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REFERENCES
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