Marks & Spencer Marketing Audit: A Comprehensive Report

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BUSINESS INTRODUCTION TO
MARKETING
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Table of Contents
Introduction......................................................................................................................................3
Marketing audit of Marks & Spencer..............................................................................................4
Current performance of Marks & Spencer..................................................................................5
PESTEL analysis.........................................................................................................................6
SWOT Analysis...........................................................................................................................8
Current marketing strategy..........................................................................................................9
Position in the market................................................................................................................11
Market segmentation.....................................................................................................................12
Conclusion.....................................................................................................................................13
References..................................................................................................................................14
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Introduction
In this era of modernisation marketing is extremely important for the functioning of the
organization. This is a tool that can help the organization in advancing their sales and at the same
time enhancing their goodwill. This assignment is focusing on the marketing strategy adopted by
Marks & Spencer. With the deliverables of the assignment the marketing patterns applied in the
respective firm are discussed in concise manner. Along with this the assignment is also included
with the marketing proposals of concerned organization. Initially the assignment will help in
highlighting a clear picture of the company and its marketing policies. The assignment is
designed in the form of a report in which in which all the elements of marketing are discussed.
The assignment likewise helps in highlighting the target market and potential consumers of the
respective organization. With a proper study of the assignment the users will be able to
understand the concept of marketing in regards of Marks & Spencer, and what strategies it
undertakes for attracting the customers. It will additionally help in highlighting the importance of
marketing in retail industry.
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Marketing audit of Marks & Spencer
Marketing audit is a process with which the managers of an organization are able to evaluate the
conditions and background of an organization. This is an approach by which the managers of the
organization are able to inspect the activities of the organization related to marketing. With the
help of this process the managers can get a review of all the processes of marketing such as
planning, research, strategizing, objectifying and so forth. The objective of the marketing audit
is to evaluate that which processes are working for the organization and what amendments the
managers require to make in the marketing plan in order to enhance its proficiency and
productivity (Businesscasestudies.co.uk. 2019).
The business of Marks & Spencer was started in late 1884, the respective organization was
initially started as Penny Bazaar. Currently it is a major part of retail industry with sound
goodwill and prestige. The headquarters of the company are in London. The company is very
popular for its clothing line. The consumers of the company are very satisfied with the quality of
goods being provided by the company. The managers of respective organization are aware of the
requirements of the consumers and are working in the specified directions. The company is also
following the CSR policy and is working for the sustainability of the organization. This will not
only help in contributing towards the process of environment protection but will likewise assist
in enhancing the goodwill of the organization (Businesscasestudies.co.uk. 2019).
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Current performance of Marks & Spencer
Marks & Spencer is a brand itself. The company have a remarkable brand equity and goodwill
in the market. With this progress the managers of the organization are able to attract the
customers in the most significant manner. The company is operating its business on both online
and offline platforms. With its availability on online networks the organization is able to grow its
boundaries to international market. In this era of modernization and globalization it is very
important for the organizations to expand their business to international market. This can help
the firm in enhancing the sales and productivity of the organization. By international trading the
organization is likewise able to contribute to the GDP of the country in effective manner
(Businesscasestudies.co.uk. 2019).
The customers of the company are quite satisfied with the quality offered by the respective
organization. Earlier the company was only dealing in the clothing line, but with time the
company is able to open its new chain which is based on food and eatables. The managers of the
company are following the obligations of Corporate social respso0nbilities (CSR)
(Businesscasestudies.co.uk. 2019). This helps the firm in eroding the negative impact of both
internal and external factors of the market. With the help of this the managers of the company are
able to satisfy all the stakeholders associated with the business chain i.e., the consumers,
employees, investors, suppliers and distributors etc.
The company is currently working on its transformation program. The managers are trying to
erode the effect of all the legal and social practices. The authorities of the company are trying to
evaluate all the external forces and functioning as per the laws of the respective nations. In this
period the company is judging its policies and working for the further improvement. The
managers of the company are preparing the company for the future changes. Currently the only
objective of the managers of the organization is to prepare all the associated parties for the
coming changes in the organization.
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PESTEL analysis
The current performance of Marks & Spencer is impacted by a number of external factors. These
factors can be evaluated with the help of PESTEL Analysis, which is provided below:
Political factors
European Committee which affects the international trade policy of the company has removed all
the major taxes from the organization. This helped the organisation in enhancing its international
trading. The firm is now involved in the process of importing and exporting which is helping in
enhancing the reserves of the firm (Businesscasestudies.co.uk. 2019).
Economic factors
The competitors of respective company are also having a good brand equity and goodwill in the
market. They likewise serve the niche market and therefore their operations impact the functions
of the firm in negative manner. The competitors of the firm provide the products to the
customers in relatively cheaper prices (Businesscasestudies.co.uk. 2019). This enhances the cost
related disadvantages for M&S.
Social factors
The changing perspective of the costumers is hampering the activities of the firm in negative
manner. Earlier the consumers were more into British high quality cloths but currently the
consumers are more diverted towards the fashionable cloths (Andaleeb, 2016).
Technological factors
The company is known for making use of the latest design and latest technology. For the purpose
of advertising the company have hired famous celebrities like Myleen Class, Erin O’Connor
and Noemie Lenoir all of them are style icon and have a great goodwill in the market. With the
help of these celebrities the respective organization is able to attract majority of the target
market.
Legal factors
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For the growth of the company it is very important for them to work as per the laws and
legislations. The managers have to follow the health and safety laws as imposed by the
government. For the respective purpose the company is conducting re-training program and the
packaging process of the firm is free of plastic.
Environmental factors
The company is working as per the norms of Green policy. Under this policy the company is
continuously trying to reduce its carbon footprints from the society. With the help of this process
the respective organization is able to attract the concern of the potential consumers
(Businesscasestudies.co.uk. 2019).
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SWOT Analysis
Along with the external factors, the internal factors of the market likewise impact the functioning
and the marketing process of the organization. In order to enhance the sales and productivity of
the organization managers must try to analyse the impact of internal factors on the activities of
the organization. The internal factors can be analysed with the help of SWOT analysis, which is
provided as below:
Strengths
The major strength of the firm is its brand name and equity in the market. In this the customers
are attracted towards the firm having strong brand identity and therefore it is the biggest
advantage of the organization. Apart from this the company is likewise popular for providing
quality products to its customers. With the help of these elements the company is quite popular
among its target market.
Weaknesses
The most strategic weakness of the association is that it is unable to attract younger section of the
society. The marketers of the firm are unable to segment its retail units regarding the younger
section of the market. Along with this the software which is used by the company for handling
the online shopping is hampering is customer retention rate (Kumar et. al., 2013).
Opportunities
The demand of fashionable and trending clothes is increasing in the era, the companies that are
providing good quality trendy cloths are quite popular among the youth. Along with this the
trend of healthy eating is likewise enhancing in this modernised world. Both of these scenarios
are related to the opportunities available to the respective organization (Andaleeb, 2016).
Threats
The major threat for the organization is the increasing level of competition. With time a number
of new organizations are taking over the market. This is hampering the market and the customer
base of the respective firm in negative manner. The major competitors of the firm are Primark,
Tesco, WalMart and so forth (Businesscasestudies.co.uk. 2019).
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Current marketing strategy
Currently the company is trying to evaluate a number of marketing strategies that can help the
firm in enhancing its sales and productivity. With the help of these strategies the respective
organization will be able to perform effectively in the global market. A number of marketing
strategies adopted by the firm are as follows:
Specialist marketing team
The managers of M&S are trying to hire a specialist marketing team rather than a general one.
By restructuring its marketing team the respective firm will be able to evaluate the conditions of
the market in more advanced and attractive manner (Camilleri, 2018). This will help the
managers of respective organization in scrutinizing the requirements of customers in a significant
manner. The major impact of the respective strategy on the organization is highlighted below:
 The new market team will be able to advice new marketing plans that can help in
boosting the production and capacity of the organization (Kumar et. al., 2013).
 The new marketing team will be able to identify the segmented customers in the most
easy and effective manner. This will help in boosting the sales of the organization.
 A new and creative team will be able to propose creative marketing plans in the
organization.
 Specialised team possess high skills in comparison to a general marketing team. They are
highly experienced personal and are aware of all the changes and fluctuations of the
market.
Hiring ODD (outside design and development) for creative clothing
In this era every consumer is attracted towards the company that manufacture fashionable
clothes. Hence in order to enhance the scope of design and fashion in the organization the
managers of M&S have hired ODD. This agency helped in enhancing the creativity and
innovativeness in the organization. This agency can help the marketers of M&S in attracting the
target market and enhancing its goodwill in the society (Camilleri, 2018). The team hired by the
company have speciality in the field of designing and creative development. Some of the benefits
of respective strategy are as follows:
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 By outsourcing the task of designing to an ODD team the managers of the firm will be
able to focus on other important activities of the organization.
 This will help the firm in enhancing the quality of other functions apart from designing
such as planning, coordinating, scheduling and so forth
 With the help of this process the organization will be able to launch new and fashionable
cloths in the market. That will help in enhancing the profitability and proficiency of the
organization.
 With the launch of new and creative products the firm will be able to enhance its
goodwill in the market. It will likewise be able to attract new consumers towards the
organization (Camilleri, 2018).
 Outsourcing will help the firm in lowering the burden from the employees. With the help
of this process the managers of the firm will be able to satisfy the morale of the
subordinates. Enthusiastic and motivated subordinates will be able to function in more
effective and significant manner. They will perform their tasks and duties effectively and
will be able to fulfil the objectives of the organization (Kumar et. al., 2013).
Trying to balance between crazy marketing
Risk taking is a part of the marketing. Every organization has to take risk in order to embark
its success in the market. In the similar manner the managers of M&S are currently taking a
number of risks in the market such as starting a new product line, adopting creative clothing
and so forth. But at the same time the managers are trying to make a balance between crazy
marketing and sober one. This will help them in marinating their brand equity and brand
identity in the market (Kumar et. al., 2013). The marketers of M&S are currently trying to
enhance the scope of safety in the organization along with every new launch and creativity. A
number of benefits provided by this practice are narrated below:
 This process will help the firm in enhancing the scope of sustainability in the
organization. The managers will be able to handle the changes of the organization in
effective manner.
 The managers will be able to enhance the scope of innovative marketing practices in
the organization (Camilleri, 2018).
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Position in the market
The clothing and food line of M&S is very popular among the customers. The company is
popular in manufacturing the most creative and innovative products. The consumers are highly
attracted towards the innovative products of M&S. But due to increasing level of competition the
company is currently losing its position in the market. The company is losing its competition
form Primark. The managers of Primark are adopting very effective marketing policies and are
impacting the business of M&S in negative manner (Nobre and Silva, 2014). The period of 2017
and 2018 was a bit difficult for the firm in terms of competition and position. The company was
losing its customers in the hands of Primark. But by 2019 the company was able to gain its
market back. The company was able to nourish is marketing activities that helped the firm in
enhancing its area of operation and productivity (Andaleeb, 2016).
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Market segmentation
Market segmentation is basically a process by which the managers of organization can divide its
target market or its customers in different categories. It is an activity of dividing a broad category
of customers into smaller parts. With the help of this process the managers of M&S will be able
to categorise its customers and can serve them in most effective manner (Nobre and Silva, 2014).
With the help of this activity the marketers of respective organization can enhance the
productivity of the process of marketing (Kumar et. al., 2013). In order to segment the market the
managers of M&S have tried to divide the market according to a few parameters these are age,
gender, perspectives and geographic location. A description of the different segments of M&S is
as follows:
Mark and Spencer clothing segmented by age:
This is the primary business of the respective company. The company was initiated with the
process of clothing. Currently the respective firm is known for manufacturing some of the latest
and trendy products in the market. The products offered by the respective company are able to
satisfy the requirements of the target market (Nobre and Silva, 2014). The clothing line of M&S
is segmented as per the age of the target market. In order to satisfy the requirements of all the
customers the company try to manufacture the products for different age groups. The company
try to manufacture the products for the age group of 16-26 and for 27-40. Both of these age
classes have different requirements and priorities, the managers of the company understand the
perception of each class and manufacture their products accordingly.
Mark and spencer food segmented by geographic location:
The food chain of the respective company is the secondary business of the organization. This
business was started by the company in 2018. The food of the company is known for its quality
and its freshness. The food chains of the respective company are segmented as per the
geographic location of the retail unit. The food sold by each retail unit is based on the taste and
preferences of the customers living therein. This helps the company in enhancing its level of
productivity and embarks its success in the organization (Andaleeb, 2016).
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