Marks and Spencer: Analyzing External Factors & Marketing Strategies

This case study delves into the marketing strategies and challenges faced by Marks and Spencer, a prominent retailer with a long history. It examines the impact of external factors such as Brexit and the rise of budget stores on the company's operations and market share. The analysis covers various trends in the retail industry, including the increasing popularity of ready meals, self-checkout systems, and online shopping, and how Marks and Spencer has adapted to these changes. The case study also highlights the company's sustainability initiatives under 'Plan A' and its efforts to maintain a positive brand image. Furthermore, it addresses issues such as supply chain challenges and the need to attract younger consumers while maintaining its appeal to its traditional customer base. The company's technology transformation program and employee training initiatives are also discussed, alongside past controversies related to worker safety and supply chain ethics.

INTRODUCTION TO
MARKETING
ASSESSMENT

INTRODUCTION
Free trade is one of the most positive feature of today’s politics, established between multiple
countries. Marks and Spencer not only has operations in the United Kingdom, but also a good
presence abroad is benefited greatly from free trade. Since it allows the company to import
and sell foreign products at prices cheaper than otherwise, increasing profit margin.
Although, this would be affected by the United Kingdom’s decision to leave the European
Union. Known as Brexit, the United Kingdom’s exit from the European Union might greatly
impact the company’s operations which is one of the political factor looming as the threat for
the company. There isn’t much clarity about the position related to the terms of trade and
tariffs, but the possible outcomes aren’t going to be favourable for the retailers in the UK. for
e.g. if the exit is in the manner of ‘hard Brexit’, the UK may lose a number of free trade
policies with the suppliers from EU, thereby increasing product prices for UK buyers.
Retail industry has price as a big factor. The last few years has seen an emergence of a
number of budget stores in the United Kingdom, be it clothing stores or supermarkets; these
new players are snatching the market share of established players like Marks and Spencer. In
fact, Marks and Spencer decided to switch towards foreign suppliers in 1999 mainly because
of these discount stores.
Marks and Spencer has been around since the 1800s, and so the household name for almost
everybody, be it children, youth or elderly. However, failing to follow the trends of time may
harm the reputation of Marks and Spencer and move the younger and children towards new
and trendy retail players.
Ready meals have become more and more palatable over the years due to advances in food
technology and therefore there is widespread of consumption of these meals by the society.
This industry is a big opportunity for the food stores. Marks and Spencer seek a dominating
position in this industry. Though the market share of Marks and Spencer in this industry is
not clear, it is reportedly one of the top ten players in the UK in this industry.
Self-checkout has become a trend in today’s food and retail stores. The trend, that is industry
wide, helps retailers save money on the cashiers along with providing a fast checkout
experience to the consumers. Marks and Spencer too, has adopted the system in most of its
stores like other players.
Another trend in today’s retail is online shopping. Marks and Spencer has also followed suit
having a good presence in the ecommerce space, where it offers almost all of its products, be
it home accessories, clothing or food products.
Marks and Spencer has pledged to be a sustainable retailer numerous times, to maintain their
image as the one caring for the ecological environment. Acquiring products, from food to
clothing to home accessories, may contain environmental factors in terms of manufacturing
emissions and deforestation in the production of raw materials.
The announcement by Marks and Spencer to implement the Technology Transformation
Programme would help the company to become a digital first organisation, exploiting
industry agile technology and methods. It has also focussed upon simplification of its
technology supplier base.

Marks and Spencer routinely conducts training sessions which covers areas like health and
safety of workers, while updating them yearly to keep up with the current set of laws, rules
and regulations. It came under scrutiny during accusations upon it, of failing to address the
safety of its workers and employees from potential risk of their exposure to asbestos. Ceiling
tiles containing hazardous materials fell to the floor during renovation at a store in Broad
Street and the company was accused of turning blind eye towards the whole issue. Eventually
it was convicted for both the offences.
The company has its ecological policy which they call ‘Plan A’. It is working closely with an
initiative known as Better Cotton Initiative, for developing practices for sustainably procuring
and processing the cotton.
It has also worked upon areas like reducing trans-fat, energy usage, and fair trade.
The company has over 400 suppliers in 4 countries at over 800 sites. Alon with premium
brand offerings like Louis Vuitton, Versace etc. Marks and Spencer also has its own labels in
most of the categories such as Autograph, Per Una etc. which are familiar and enjoy good
brand recall among customers. The company has around 900 stores in UK including 300 full
line stores, along with 300 food stores known as Simply Food. But outside of Europe, UK
and the US, they haven’t been much successful.
Due to supply chain issues, at times the company has suffered declining sales causing events
like in Christmas season of 2017, when it suffered the loss of face due to not meeting of
required demands of some items of food and clothing.
It had a franchise deal with Planet Sport providing an opportunity to expand in South Asia
and India.
In general, it has mega stores at most of the places not dividing customers on according their
area of interest unlike Sainsbury’s which opened stores by the name as Sainsbury Local’s,
helping them gain a good no. of customers.
Also, Marks and Spencer is sometimes seen as untrendy and a thing of the past-like a shop
for 60 above. The management need to build strategies to attract the younger set of
consumers.