Marketing Analysis, STP, and Strategic Recommendations for M&S

This report presents a comprehensive marketing analysis of Marks and Spencer (M&S), a leading UK retailer. It begins with an executive summary highlighting the importance of marketing for business success and the application of PESTLE and SWOT analyses to understand M&S's operating environment, including political, economic, social, technological, legal, and environmental factors. The report then delves into the company's strengths (high-quality products, supplier relationships), weaknesses (lack of customer focus), opportunities (e-business expansion), and threats (competition). The core of the report focuses on the Segmentation, Targeting, and Positioning (STP) strategies of M&S, discussing segmentation criteria (demographic, behavioral, psychographic), targeting approaches (undifferentiated, concentrated, multi-segment), and positioning challenges. The report concludes with strategic recommendations for improving M&S's current STP approach, addressing challenges in segmentation, targeting, and positioning to enhance the company's market performance. The analysis underscores the importance of effective marketing strategies for M&S's continued success in the competitive retail market.

MARKETS AND MARKETING

EXECUTIVE SUMMARY
Marketing is regarded as one of the effective way for developing awareness in the market
regarding range of products along with services. It supports organization in accomplishment of
overall aims along with objectives. Therefore, main stress of every company is on development
of effective marketing strategies so that sales revenue along with profitability level of the firm
can be enhanced easily and it is fruitful for business in every possible manner. For conducting
the present study organization chosen is Marks and Spencer which operates in retail sector and
well known in the market for range of products it delivers to its target market. Company is one of
the UK’s leading retailers where 1330 stores are present worldwide. Applicability of PESTLE
analysis has shown that government rules and regulations, unfavorable economic condition,
change in taste and preference of target market, improvement in technology, introduction of legal
laws and environmental factors affects overall operations of Marks and Spencer. Further, all
these factors influences all the operations carried out by business and to deal with them
management has taken corrective actions well in advance. Further strengths of company are high
quality products, long term relationship with suppliers, weaknesses involve lack of customer
focus, opportunities are expansion in e-business and threats involve high level of competition
etc.
Further, large numbers of challenges are present which are associated with segmentation,
targeting and positioning. One of the main issues linked with segmentation is to decide the
appropriate way through which entire market can be divided such as on the basis of age,
behavior, perception etc. The main challenge associated with targeting is to decide the
appropriate technique through which customers can be targeted. Company has to ensure whether
differentiated, concentrated or multi segment targeting is beneficial for enterprise. Hence, from
this it can be concluded that large number of challenges are present in the market which are
associated with segmentation, targeting and positioning.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1: MARKETING ANALYSIS.............................................................................................1
TASK 2: UNDERSTANDING STP................................................................................................3
2a) Concept of segmentation, targeting and positioning.............................................................3
2b) Organization approach to segmentation, targeting and positioning......................................5
TASK 3: STRATEGIC RECOMMENDATIONS..........................................................................6
3A) Improving current approach to segmentation, targeting and positioning.............................6
3b) Recommendations for improving current approach to STP..................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
APPENDIX....................................................................................................................................10

INTRODUCTION
Marketing is linked with the aspect of developing awareness in the market and promoting
the range of commodities so that target market can be easily influenced to buy them. Further, in
the modern era every business enterprise is adversely affected due to rise in level of competition
in the market and this prevents firm from accomplishing desired goals along with objectives
(Brbaklic, 2012). Therefore, main stress of every company is on development of effective
marketing strategies so that sales revenue along with profitability level of the firm can be
enhanced easily and it is fruitful for business in every possible manner. For conducting the
present study organization chosen is Marks and Spencer which operates in retail sector and well
known in the market for range of products it delivers to its target market. Company is one of the
UK’s leading retailers where 1330 stores are present worldwide. Further, e-commerce platform
of business is quite effective and organization is indulged into practices of selling high quality
and value products to 33 million customers. Marketing analysis of firm has been carried out in
the present study along with various elements of marketing.
TASK 1: MARKETING ANALYSIS
In order to carry out marketing analysis of Marks and Spencer different models have been
applied with the help of which it is possible to know the range of issues being faced by enterprise
while carrying out operations in the market. Such models are as follows:
PESTLE analysis
 Political: This factor is associated with the laws and regulations being developed by
government which firm has to comply with so as to operate efficiently in the market. It
involves payment of tax, duties and environmental regulations (Carrillat and d'Astous,
2012). Further, regulatory authorities have introduced many guidelines for entire retail
industry of UK such as safety, environmental and health. Marks and Spencer has taken
initiative of fair trading through cutting salt and fat content in food and recycling.
Therefore, in this way political factors have affected overall operations of Marks and
Spencer.
 Economic factors: This factor is associated with the economic condition of the country.
At present country like UK is adversely affected due to inflation, recession and other type
of unfavorable conditions (Dawes, 2009). Due to this reason Marks and Spencer is not
able to charge high prices for its products as condition such as inflation has affected
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purchasing power of target market. Further, it has also influenced revenue growth of the
enterprise which is low at around 2%.
 Social factor: This factor is linked with the culture, buying behavior and overall
preference of target market. In retail industry fashion trends, customers need plays crucial
role and they changes rapidly. Therefore, Marks and Spencer has to modify its product
range so that large number of customers can be attracted through this (Franklin and et. al.,
2009).
 Technological factors: It involves adoption of latest technology where main stress is on
research development. In the entire retail sector two key drivers of technological change
are present which involves e-commerce and focus on sustainability.
 Legal factor: This factor takes into consideration the laws associated with safety of
consumers, environment, health etc. Company like Marks and Spencer has taken various
initiatives to comply with the law by promoting safe along with convenient environment
to the consumers along with staff members (Henderson, 2014).
 Environmental factors: In order to protect surroundings where operations are being
carried out government has introduced several guidelines and Marks and Spencer
complies with such guidelines.
Therefore, these are some of the key factors affecting overall performance of Marks and
Spencer in the market. Further, all these factors influences all the operations carried out by
business and to deal with them management has taken corrective actions well in advance.
SWOT analysis
Strengths
 Excellent and high quality products
 Long term relationship with suppliers
 High level of market share along with profitability
 Strong relationship with staff members
Weakness
 Lack of customer focus
 Poor in adoption of advanced technology
 Poor customer service as company does not provides loyalty
Opportunities
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 Company has opportunity to enter e-business effectively as competitors of firm are doing
 Expansion is possible in case of growing commodities such as home and beauty, food etc
 Firm can focus on clothes market on the basis of age etc
Threats
 Rise in level of competition especially from Tesco, Sainsbury etc.
 Increase in use of internet to shop products online
 Marks and Spencer is not performing well in foreign market after expansion
Therefore, applicability of PESTLE along with SWOT analysis has supported in knowing
that different type of challenges are present in the environment which are adversely affecting
business functioning. Targeting is one of the main issues faced by business while operating in the
market as competition level is quite high due to which it becomes difficult to offer range of
products to target market. Further, positioning is one of the challenges faced by Marks and
Spencer in the market where organization is not able to identify the appropriate way through
which its product range can be positioned easily (Jain and Roy, 2012). Apart from this selection
of deliver channel of advertising is also one of the issue where company has to decide the
appropriate channel through which crucial information can be shared with target market and
through this large number of customers can be attracted easily.
All these issues are important for enterprise as without effective targeting, positioning
and adoption of delivery channel it is not possible for business to survive in the market and it
directly leads to decline in level of overall performance. Apart from this, by considering these
issues business enterprise can easily deal with the challenge of rise in competition level in the
market. Therefore, these are some of the marketing issues faced by business at the time of
operating in the market (Koenigstorfer and Groeppel-Klein, 2012)
TASK 2: UNDERSTANDING STP
2a) Concept of segmentation, targeting and positioning
As per view of Aaker (2008) segmentation involves grouping customers into the
segments on the basis of their needs, desires etc. Through appropriate segmentation it becomes
easy for business to offer wide range of products to the target market and this needs can be easily
satisfied in efficient manner (Aaker, 2008). Different criteria are present on the basis of which
entire market is segmented such as on the basis of demography, behavior, psychographics etc.
According to Polonsky and Ringer (2009) in demography segmentation overall characteristics of
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target market are considered such as age, income, gender, education etc. Further, in behavioral
segmentation overall behavior of target market is considered such as brand preference, online
shopping etc. In psychographics segmentation lifestyle of the customer is considered which
involves their lifestyle, personality, social class etc (Polonsky and Ringer, 2009). However
Shergill and Nargundkar (2005) argued that selection of appropriate segmentation criteria
depends on every company and it is not possible that every company may employ same criteria
for attracting its customers.
According to Dobkin (2010) targeting is also regarded as one of the most important
elements in marketing which is an only possible when proper segmentation criterion is adopted.
Through targeting it is possible for business to evaluate attractiveness of each segment of its
buyer power, size, market growth etc. Generally three criteria’s are present on the basis of which
targeting is possible and it takes into consideration undifferentiated, concentrated and multi
segment one. In undifferentiated targeting market is regarded as one group with no individual
segments (Dobkin, 2010). This type of criteria is generally adopted by enterprise where
competition level is not high. Further, in concentrated targeting main stress is on selecting
market niche on which marketing efforts are targeted. In multi segment targeting main focus is
on two or more well defined market segments and strategies are developed for them.
However Steenkamp (2014) argued that appropriate targeting strategy allows business to
better satisfy need of its target market and in turn acts as development tool for the entire firm.
Apart from this, positioning is considered as the process of developing a unique brand image in
the minds of target market. It is all about improving perception of customers about the overall
experience that product or service offered can provide to them. Positioning is possible on the
basis of products attribute, quality and other unique features (Steenkamp, 2014).
Further, large numbers of challenges are present which are associated with segmentation,
targeting and positioning. One of the main issue linked with segmentation is to decide the
appropriate way through which entire market can be divided such as on the basis of age,
behavior, perception etc. Moreover, for every type of product single segmentation criteria is not
at all appropriate for company and due to this reason it may have adverse impact on business
enterprise. Apart from this, sending wrong message to the target market is also one of the main
issues while dividing the market into groups on the basis of their needs, desires and overall
behavior (Kulik, 2014). Further, the main challenge associated with targeting is to decide the
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appropriate technique through which customers can be targeted. Company has to ensure whether
differentiated, concentrated or multi segment targeting is beneficial for enterprise. By adopting
appropriate strategy it is possible for company to attract large number of customers easily. At last
main issue linked with positioning is to decide whether to position products on the basis of
attributes, features or any other characteristics. Therefore, these are some of the main challenges
associated with segmentation, targeting and positioning which every firm has to consider for its
growth and survival.
Hence, from this it can be concluded that large number of challenges are present in the
market which are associated with segmentation, targeting and positioning. Further, by dealing
with such issues it is possible for business to operate efficiently and it can act as development
tool for the entire business. Moreover, it can assist business to offer products to its target market
in most effective manner and can support organization to grab the range of opportunities present
in the business environment.
2b) Organization approach to segmentation, targeting and positioning
Marks and Spencer has employed effective segmentation, targeting and positioning
strategy through which company is able to operate efficiently in the market. Company has
adopted all the three criteria’s which are demography, behavioral and psychographic. In
behavioral segmentation company highlights all the key benefits of its products and customers
perceive its product range as traditional and standard clothing (Seppälä, 2012). Through this
company is able to understand the actual behavior of its target market and it has supported in
attracting customers. Further, psychographic segmentation criteria has also been adopted by
company where lifestyle of target market is considered as company strongly focuses on middle
aged person mainly women who are active and energetic too. Further, in demography
segmentation customers lying under age group of 35 to 60 years are considered who are rich.
Firm also focuses on wealthy suburban areas, home countries, professional metropolitan areas
etc. Therefore, in this way the segmentation criterion undertaken by business is effective.
Marks and Spencer has employed multi segment targeting where main customers who
generate revenue for firm involves middle aged women and some other class of customers are
also present who can support in enhancing sales volume of company. Firm strongly focuses on
targeting multi segment of people who belong to good socio economic class. In past company
only focused on women gender but not at present men market has also been focused.
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Marks and Spencer has become international brand and positioning is done by enterprise
on the basis of products attributes and other kind of features. Through this, it is possible for
business to enhance its brand image in the market and it has lead to stronger customer base of
enterprise in the market (Target market selection segmentation and positioning, 2008). Company
strongly focuses on product differentiation and it is allowing business to deal with the issue of
rise in competition level in the market. Therefore, this positioning strategy is allowing Marks and
Spencer to better perform in the market and in turn is acting as a development tool for the entire
business.
TASK 3: STRATEGIC RECOMMENDATIONS
3A) Improving current approach to segmentation, targeting and positioning
Different effective ways are present with the help of which Marks and Spencer can
improve its segmentation criteria. One of the most effective options for better segmentation of
market is to know the actual need and requirement of target market in advance. It is the first and
foremost duty of marketers to ensure what type of product customers prefer to purchase and on
the basis of their actual requirement they can be easily segregated. This option recommended can
be fruitful for business in every possible manner and can allow Marks and Spencer to perform in
the competitive market easily. Moreover, organization must consider all the range of factors
which consumers consider at the time of purchasing commodity (Hanlon, 2013). This can
support in proper segmentation and can allow in attracting customers.
Further, segmentation must be based on behavior of target market where company must
consider their attitude, lifestyle and overall standard of living. This can allow Marks and Spencer
to divide its target market in appropriate manner and can enhance overall performance of
business in the market. Moreover, for targeting customers company can target them on the basis
of real benefits derived after purchasing products. This is effective enough in encouraging target
market to buy the range of commodities. Moreover, company must decide well in advance the
range of products to be offered at the time of targeting them. For promotion the suitable options
which can be considered involves on the basis of products benefit, affective fulfillment, price,
quality etc. Through all these method it is possible for every company to position its products in
appropriate manner and in turn can allow business to become leader in the market.
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3b) Recommendations for improving current approach to STP
In order to enhance the current approach to segmentation, targeting and positioning it is
possible for business to perform better in the market. One of the most effective ways is to
understand the actual requirement of target market where business can identify what type of
product customers prefer to purchase and on the basis of same they can be segmented. It is not
necessary that one segmentation criteria adopted is acceptable by every firm. This
recommendation provided is suitable for business as in the entire market opportunity is present to
business where segmenting and targeting customers on the basis of their desire can attract large
number of customers and it is profitable for company (Jain and Roy, 2012). Further, the
proposed strategy meets expectations of stakeholders and it is easily acceptable. It is also feasible
for company where proper marketing resources are present within the company. The second
recommendation is positioning on the basis of products attributes and how it is different from
competitors. This strategy can be beneficial for company and can assist in retaining customers
for longer period of time.
CONCLUSION
The entire study has supported in knowing the significance of marketing in the modern
era where Marks and Spencer has employed effective segmentation, targeting and positioning
criteria so as to perform better in the market. Further, large numbers of challenges are present in
the market associated with the concept of STP which business has to consider as sometime due
to ignorance of desire of target market business is not able to perform better. Therefore, by
dealing with challenges business can gain competitive advantage.
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REFERENCES
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