Analysis of International Marketing Strategies: Marks & Spencer

This report provides an in-depth analysis of Marks & Spencer's international marketing operations, focusing on its performance in the United Arab Emirates. It begins with an executive summary and introduction, followed by an overview of the company, including its mission. The report then delves into a macro marketing analysis, utilizing PESTLE and Porter's Five Forces frameworks to assess the external environment. The marketing mix is examined, detailing product, price, place, and promotion strategies. A SWOT analysis highlights the company's strengths, weaknesses, opportunities, and threats. The report concludes with recommendations for Marks & Spencer to improve its market share and competitiveness, particularly by adjusting its pricing strategy and cost structure to cater to a wider customer base, and also discusses the impact of Brexit. References are also included.

Running head: INTERNATIONAL MARKETING
International Marketing Report
February 21
2019

INTERNATIONAL MARKETING 1
Executive Summary
The intent of this paper is to increase the understanding of the environment in which a
business operates its activities with the help of different strategies. The paper is discussing
regarding Marks & Spencer, which has executed its operations across the world. It paper has
majorly discussed regarding key operations of the company in the United Arab Emirates,
which reflects that the company has successfully gained the trust of the customers with its
high quality products. However, the company is experiencing a high level of competition
from fashion giants like Zara, UCB, Gap, etc. In order to deal with this, the paper has
recommended Marks & Spencer to change its pricing strategy and develop a different cost
structure that can cover all the customer class with different salary structure. Adopting this
strategy will allow the company to increase its market share as well as sales. Besides this, it
will support in giving strong competition to its rivals in the UAE market.

INTERNATIONAL MARKETING 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Overview of Marks & Spencer..............................................................................................3
The mission of Marks & Spencer.......................................................................................3
Macro Marketing Analysis.....................................................................................................4
PESTLE Analysis of Marks & Spencer.............................................................................4
Porter Five Force Framework............................................................................................7
Marketing Mix of Marks & Spencer......................................................................................9
Product...............................................................................................................................9
Price..................................................................................................................................10
Place.................................................................................................................................10
Promotion.........................................................................................................................11
SWOT Analysis of Marks & Spencer..................................................................................12
Strength............................................................................................................................12
Weaknesses......................................................................................................................13
Opportunity......................................................................................................................13
Threat...............................................................................................................................13
Recommendations....................................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................16

INTERNATIONAL MARKETING 3
Introduction
Marketing on the international level is very important for numerous companies to attain
success. When business promotes or expands its operations on the global level, they incline
towards increasing their customer base, bottom line, and traffic (Gilligan and Hird, 2013).
Increasing the customer’s number supports businesses in increasing their sales. Developing a
global marketing strategy helps in enhancing the product or service effectiveness. Along with
business development, it is very important for the company to analyze its business
environment where it is operating its activities in order to understand the type of forces
influencing the business operations (Brady, 2014). To do so, the paper is being prepared to
evaluate the factors that are affecting the operations of Marks & Spencer in the United
Kingdom market. The paper is also intended to analyze different marketing strategies used by
the company to overcome those factors.
Overview of Marks & Spencer
Marks and Spencer is one of the well-known retailers of the United Kingdom with around
1,380 stores across the world with headquarter in London. The company focuses on vending
home products, food products, and cloths. Marks & Spencer is listed on the London Stock
exchange. Thomas Spencer and Michael Marks are the founding members of the company.
Presently, the company has around 979 physical stores in the United Kingdom comprising
615 only involved in selling food products (Marks & Spencer, 2019a).
The mission of Marks & Spencer
The mission of Marks & Spencer is to offer aspirational quality to all the customers with the
help of skilled and qualified employees (Marks & Spencer, 2019b).

INTERNATIONAL MARKETING 4
Macro Marketing Analysis
PESTLE Analysis of Marks & Spencer
Source [(Perera, 2017)]
Political Factor
The political stability in the United Arab Emirates has supported Marks & Spencer to cover a
good share in the market with smooth operations at different locations of the country. The
company operates its business in different Emirates of the country, due to which it has to
follow different government regulations, however, allows flexible management around the
nation. UAE has good relations with different countries that support Marks & Spencer to
manage its business from different Emirates (Arabian Business, 2012).
Moreover, Marks & Spencer is being influenced by the free trade agreement of the European
Commission, which has resulted in making import very easy and has resulted in reducing the
sourcing cost. However, the Brexit followed in 2016, consequence in a drop to the sales of
the company across the world where the company operates its business. Because of the high-
cost structure, Marks & Spencer has experienced a loss in the market share when taking
entering a new market. In 2015, the company attained a stalled growth in the global business
because of the worldwide uncertainties, inferior setup, and reduced profitability in the new

INTERNATIONAL MARKETING 5
markets that have resulted in ceasing of 12 stores (Adamkasi, 2017). The geopolitical
discontent also influenced the international operations of the company. The business
operations of Marks & Spencer in Ukraine, Russia, and the Middle East also underwent a
major decline because of currency fluctuations, geopolitical variability, and decreasing
demand from the customer.
Economic Factor
In 2008, during the financial crisis, where rivals like Tesco and Aldi complied with
discounting pricing strategy, Marks and Spencer focused on offering high-quality products
and increasing customer satisfaction. At the same time, this approach resulted in a decrease in
the sales in short-term but due to the economic stability of United Arab Emirates leads to
increase in customer confidence for the long-term because of the customers’ inclination to
seek quality and value (Reuters, 2019). However, the continued financial crisis increased the
price sensitivity of the loyal consumers of Marks & Spencer.
Social-Cultural Factor
Two factors that influence the retailers in the United Aran Emirates market comprises
changing values and a generation shift (with the retirement of the baby boomer generation,
the businesses are concentrating on Millennial and General X). Different generations carry
noticeable change in the behavior of the customer, from the shopping habits to the technology
used to know about the products (Adamkasi, 2017). Two drifts the retailer must consider are
the customer preference in terms of fashionable products of different generations and/or
increasing opinion, that the product produced by other retailers are no longer of high quality.
Green consumerism and consumers’ ethical worries regarding socio-environmental costs of
brands they adopt is the key aspect adding value to the growth of sustainability reporting of
the company and its activities. Considering the case of M&S, it has increased its focus on the

INTERNATIONAL MARKETING 6
social agenda (UAE Embassy, 2019). For this company is giving priority to its nine-year-old
sustainability plan that is based on managing relationships with the suppliers and consumer
across the world.
Technological Factor
Meanwhile, Marks & Spencer has strong social as well as online presence, which reflects that
it is positioned well to exploit this avenue. Customers are more focused on technology and
like online retailing in comparison to in-store purchases. Marks & Spencer must increase its
existence on the digital platforms in order to take a maximum of this shift.
Marks & Spencer has shifted from the Amazon hosted platform to its own online website
introduced in 2014 in order to offer extra options of delivery and rationalized multichannel
services. The company has introduced big data projects like allocation replenishment and
predictive analytics system, improved its digital strategy with the help of ‘mobile first
approach’ hence replying to the requirements of the customers that are progressively
retrieving the modern trends through mobile phones (Hendriksz, 2018). A devoted digital lab
squad of around 150 software engineers is operating to ensure the leading position of the
company in terms of technological expansions.
Legal Factor
Safety and Health regulations, environmental, antitrust, consumer rights, and other legal
forces influence business operations. The initiative takes by Marks & Spencer that is ‘Behind
the Barcode’, offer customers an omnichannel experience by permitting them to order
products from the online platform or in-store shopping by scanning an item in-store
(Genesys, 2019).

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Environmental Factor
With severer environmental regulations at the global level and growing customer pressure
regarding practices of business, key worldwide retailers and brands need to inspect their
product’s life cycle from cradle to grave, from suppliers to the customers in order to be
accountable regarding their adopted strategic practices. Plan A, adopted by Marks & Spencer
related to ethics and environment is working as a backbone regarding the way operations of
the business are processed, has supported company stay competitive and on the top by being
responsible towards society reducing waste and supporting the stakeholder (Marks &
Spencer, 2019b).
Porter Five Force Framework
Source [(Roy, 2011)]
The Threat of New Entrant
The retailing industry experience low threat from the new entrants because of the high
investment of capital to take entry in the market and establish as a strong brand with
increasing loyalty of the customers. Potential new entrants would be disheartened by the
M&S high loyalty customers, high product quality, and long developed network of the supply

INTERNATIONAL MARKETING 8
chain. However, in spite of significant entry barriers, the company is dealing with incoming
competition in the food and clothing industry. Fashion brands like Gap, Zara, and H&M are
aiming younger, fashion-oriented customers with modern trends and reasonable prices (Fern
Fort University, 2018).
The threat of Substitute Products
Marks & Spencer run its business in the industry where innovation is given major priority in
order to maintain the consistency of the brand with the needs of the changing customer.
Considering the clothing business, the substitute product threat is very high due to high
chances of imitation of the designs. The top position of the brand is endangered by unstable
preferences of the customer; they might like to purchase a product of similar quality but at
low prices (Fern Fort University, 2018).
Power of Buyers
The bargaining power of the customers is high in the industries where Marks & Spencer
operates. Different changes in the market like increasing customer price sensitivity, changing
customer preference related to fashionable trends, etc. are increasingly influencing the retailer
(Pestle Analysis, 2016).
Power of Suppliers
The power of supplier bargaining is low in the retail industry due to the presence of a number
of suppliers who try to reach the shelves of Marks & Spencer in order to cover a huge
customer base. Besides this, the company is not dependent on its suppliers as other retailers
because it majorly vends its own branded products. It means that Marks & Spencer purchase
raw materials, which is favorable for margins. Numerous of the suppliers belong to
developing nations that are dependent on Western businesses for their agreements or
contracts (Pestle Analysis, 2016).

INTERNATIONAL MARKETING 9
Competitor Rivalry
The level of competition in the retail industry is very high. Marks & Spencer is experiencing
intense competition from different rivals like home wear stores, and fashion retailers. The
competitive retailing setting is experiencing high transformation- the stable growth of catalog
and online shopping and rivals providing products of almost similar quality at reasonable
prices along with improved and suitable in-store experience for the consumers. Hence, M&S
is increasing the level of its online business, with sales growing from mobiles and tablets by
80% and 28% respectively (McDonald, 2018).
Marketing Mix of Marks & Spencer
Source [(Richter, 2012)]
Product
Marks & Spencer is a well-known fashion brand with headquarter in the United Kingdom and
the top chain of retailing in the United Arab Emirates. The marketing mix's product portfolio
of Marks & Spencer covers a wide variety of products for all the age groups of kids, women,
and men. The company offers a different variety of products for women which comprises

INTERNATIONAL MARKETING 10
Linen, skirt, Cardigans, Jeans, shirt, Cashmere, Blazers, etc. For women, there is also a sector
of footwear comprises loafers, heels, boots, pumps, sandals, etc. The accessories and bags
section include jewelry, handbags, sunglasses, beach bags, etc. Some of the brands famous
among women are Foot Glove, Indigo, Autograph, Per Una, Twiggy, and Classic. Besides
this, the company also provide Furniture and Home products such as furniture for dining
room, living room, bedroom, and lighting (Marks & Spencer, 2018). It includes Wine and
Food section, which serve all main courses, lunches, starters, dinner, wine, etc. The portfolio
of Marks & Spencer also includes gifts and flowers section. Majorly company sell its own
brand products and avoid selling products of foreign brands.
Price
In the marketing mix, Marks & Spencer complies with a competitive pricing strategy to vend
its product in the market. The company owns its own brand products for kids, women, and
men. Normally, these products are valued between the range of medium to higher due to their
high quality. Yet, M&S go with the same strategy that is competitive pricing because
consumers today have a number of possible options available in the market due to increased
competition intensity. The company also deal with rivalry from big retailers and online
retailers. The business has also adopted the dynamic strategy of pricing only in the seasonal
time, in which it provides possible discounts on the goods to attract customers. In the
discount slot, M&S place its old stock at lesser prices in comparison to the new and trendy
stock (MBA Skool, 2018).
Place
M&S is considered the most successful international brand that owns around 1000 stores in
more than 50 nations. The operations of the company take place in its origin place that is the
United Kingdom with 850 stores. In Asia and the United Arab Emirates, the company
operates around 88 stores (Image Retail, 2018). Some other nations where the company

INTERNATIONAL MARKETING 11
operates its activities are Ireland, Finland, Turkey, Hungary, Spain, and France, etc. Marks &
Spencer do also have their own online website, which allows customers to purchase the
newly arrived stock and get the home delivery. For limited products company also offer the
international delivery option. Each product could be purchased in domestic currency at the
time of doing online shopping.
Source [(Image Retail, 2018)]
Promotion
Marks & Spencer has one of the most talented and successful market team, which support it
in adopting marketing approaches carefully in order to bring into line its marketing operation
and digital marketing along with its in-store strategy. M&S majorly focus on spreading a
common advertisement message through the entire communication medium. It makes use of
the mobile application, print media, different social media advertisement, television
advertisement, etc. Besides this, the company is also making use of its online website for the

INTERNATIONAL MARKETING 12
promotions of the products for kids, women, and men. Consumers can get different fashion
tips and advice on its website. The loyal customers of M&S get a discount in the form of
seasonal sale, which also supports the company in promoting its brand. The company has also
launched a loyalty program that is ‘Sparks’, which provide points to the consumers in their
Marks & Spencer account depending on their shopping. The customers can use these points
in future shopping from the stores of M&S (Fitzsimons, 2019).
SWOT Analysis of Marks & Spencer
Strength
Private Labels
In addition, to the top brands such as Versace, Louis Vuitton, and Vero Moda, Marks &
Spencer also places its own brand products on its shelves in every category. Few of the most
known brands of Marks & Spencer are Indigo Collection, Classic Collection, Per Una,
Autograph, and North Coast (Bhasin, 2018). These in-house brands have supported the
company in attracting many customers towards M&S and have increased the brand recall.
Diversity
The company has employed 80,000 personnel who work in its offices and showrooms across
the world. Marks & Spencer boosts diversity and therefore have employees from different
ethnicities, genders, and religions. It provides equal opportunity to every employee and
confirms that the culture of the company remains free from discrimination (Corporate Marks
& Spencer, 2018). This reflects that the employees of the company are socially sensitive and
know the consumer better.

INTERNATIONAL MARKETING 13
Weaknesses
Incapable to penetrate successfully in international markets
M&S has its major presence in the United States, the United Kingdom, and Europe, the
United Kingdom, and the United States. Besides this, it has launched its stores in the Middle
East and Asian market, which has become a success in winning the trust of the customer due
to having a maximum of the non-traditional and western designs (Jain, 2016).
Opportunity
New Segments
Fashion is said to be a developing business, due to which the new segments are adding in the
industry regularly. In the Middle East market, there is a high demand for western wear, which
is being fulfilled by the company effectively. However, in the Asian market, there is a high
demand for traditional wears, which is not being satisfied by the company (Bhasin, 2018).
This reflects that the company has the opportunity to cover the market and offer different
designs.
Threat
Competition
The company is experiencing high competition in the United Arab Emirates from some of the
high brand competitors such as UCB (United Colors of Benetton), Gap, Zara, Tommy
Hilfiger, and Uniqlo (Bhasin, 2018).
Recommendations
The above analysis has reflected that Marks & Spencer is operating its business around the
globe with key setups in the UK, the United States, and Europe. Besides this, it has launched
its stores in the Middle East as well as in the Asia market, which are running successfully.

INTERNATIONAL MARKETING 14
The analysis reflects that the political and economic stability of UAE market is allowing the
company to adopt different strategies to attract customers, however, increasing competition
intensity is influencing its operations as well as sales in the market. In order to give strong
competition to its rivals in the UAE market such as UCB (United Colors of Benetton), Gap,
Zara, Tommy Hilfiger, and Uniqlo, Marks & Spencer must focus on the changing its pricing
strategy. Presently, the company has adopted a competitive pricing strategy according to
which it is offering its high quality products at high prices, due to which it is not able to cover
the customers that are price sensitive. Therefore, it is recommended that the company must
work on these prices and try to cover the entire market. In addition, Marks & Spencer must
now need to have a different price segment for different customer class or salary structure.
This strategy will allow the company to cover the major customer base in the United Arab
Emirates and attain a competitive advantage over its competitors.
Furthermore, to satisfy Asian customer’s needs, Marks & Spencer must add a traditional wear
segment in its product portfolio. This will allow the company to increase its customer base
and capability to beat its competitors who have already entered in the traditional wear
segment in this region.
Conclusion
The above report has provided a detailed analysis of the macro environment in which Marks
& Spencer operates its activities along with the available opportunity and threats in the
market. From the analysis, it has been identified that due to the political and economic
stability of the United Arab Emirates company able to operate its business effectively by
successfully satisfying the needs of the customers. However, due to the presence of high
brand competitors such as Zara, Gap, etc. company is not able to cover the entire market. The
major reason behind this is its high prices which are being charged from the customers in

INTERNATIONAL MARKETING 15
exchange of high quality. In order to overcome this problem and cover the market, the above
report has recommended Marks & Spencer to change its pricing strategy. Besides this, Marks
& Spencer need to have different price segment for different customer classes with diverse
salary structure. This strategy will allow the company to cover the major customer base in the
United Arab Emirates and attain a competitive advantage over its competitors.

INTERNATIONAL MARKETING 16
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