Analyzing M&S: A Report on Marketing Fundamentals and Evaluation

This report provides a comprehensive marketing analysis and evaluation of Marks & Spencer (M&S), a leading British clothing company that has expanded into home products and the food market. The analysis utilizes several strategic tools including the Ansoff Matrix, PESTEL analysis, SWOT analysis, and Porter's Five Forces to assess M&S's current market position and potential growth strategies. The Ansoff Matrix explores market penetration, market development, product development, and diversification strategies, recommending market penetration as the most suitable for M&S. The PESTEL analysis examines the political, economic, social, technological, environmental, and legal factors affecting M&S, highlighting the impacts of Brexit, COVID-19, and technological advancements. The SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. Porter's Five Forces model evaluates the competitive intensity within the retail industry. The report concludes by emphasizing the importance of adapting to market dynamics and leveraging strategic tools for sustainable growth. The company has to look for new business ideas and associated options that will help in successful launching of the same. Meanwhile, diversification can lead to reduce the quality of the products and making the business operation too complicated to be managed. Diversification will demand for new set of skills that is hard and expensive for the company. Mismanagement within the diversification process will result in over expanding in new directions.

MARKETING
FUNDAMENTALS
ANALYSIS AND
EVALUATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Ansoff matrix..............................................................................................................................3
PESTEL analysis.........................................................................................................................5
SWOT Analysis ........................................................................................................................8
Porters 5 forces............................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Mark and Spencer is the leading British clothing company which deals with fashion
products and accessories & also deals with home products and now have entered the food
market. The company was started by Michele Mark and Thomas Spencer in 1884. They currently
own approx 1000 stores around the globe, including 600 which only sells food products. The
company have also started online food delivery partnered with Ocado. The company has to close
around 100 stores and more than 7000 people have to lose their job over the 3-month period for
ongoing coronavirus. The company faces a huge loss and announced that they will close another
10 stores as a turnaround plan. The company has sold wide range of charitable women's clothing
as a celebration toward the breakthrough of breast cancer
MAIN BODY
Ansoff matrix
This strategic tool helps in facilitating various business decisions helping in the business
growth. It includes analysis of external factors in accordance with the political stability and
economy of the region. This analysis will help in developing various strategies that will help in
growth of the company. Marks and Spencer is successful in conducting its operations globally
along with local markets while specializing its product line towards fashion retail and home
products.
Market penetration: This strategy is related to make the business grow with the help of
existing products in the market where the company is already existing (Loredana, 2017). Marks
and Spencer can use this strategy by increasing the capacity of its production. This help the
company in reaching out to much wider audience present in the same audience. It will lead to
have more efficiency and effectiveness by controlling its overhead costs. This control will help
in making competitive pricing strategy and appeal to customers with the same. Another method
is by increasing the marketing investment. This can be done with the help of investing more in
marketing and related activities that will help in market penetration.
Marks and Spencer must engage with its customers with the help of producing relevant
content in different groups present within market. Engaging within marketing activities to make
the brand reach out to the more customers present from the same market. High investment in

marketing will help in penetrating the market more easily without introducing any new products.
In addition to this, company can enhance its distribution by making the process more innovative.
It includes exploring new channels for distribution. Enhanced distribution will help in reaching
out to new consumer segments that were inaccessible before.
Market development: It includes introducing the already existing products in new
markets. This can be done when the company will invest more in research and development that
helps in identifying new markets and consumer segments. Research and development is a good
way to focus on understanding different market cultures and trends along with learning about
customer behaviours and purchase patterns. However, investing in research and development
will require extra expense from the company that will decrease its profits margin (Cleberg,
2019). Regional expansion includes expanding the business on local terms such as to different
cities present in the same geographic region while taking different cultural aspects in
considerations. But, this includes cost of establishing with high level of compliance risk.
International expansion is yet another strategy that will help in getting access across
various consumer groups thus, increasing its overall share in the market. On the other note, by
the strategy of international expansion, Marks and Spencer will need to manage cultural
differences as it can cause major conflicts. Cultural differences play an important role in the
process of global expansion. The company can also explore in new customer segments but
identifying the applications of new products. This way customer can tap into new markets and
trends thus, attaining growth and expansion. However, this will make the marketing process very
expensive for the company.
Product development: It includes the growth of business in already existing markets with
the help of introducing new products. Marks and Spencer can do this with the help of building
modification in its existing products. Improvements will help in providing its customers with
enhanced offerings and will lead to increase sales and consumption for the same. This method
has the risk where the old customers will not be happy from these modifications. Launching new
products requires identifying new points related with the demands of customers as well as work
on the new product development process.
It will increase the reach of the company and make the company penetrate new segments
of markets (Khajezadeh, and et.al., 2019). This strategy includes high risks as it is safer to stick
with the products that the customer already know, rather than exploring untested territory. In

addition to this, it also includes extra cost and high completion from the existing companies.
Improving the quality of product in product development will allow Marks and Spencer in
exploring new customer segments and targetting new customers. Improving the product quality
will result in increasing price of the same and therefore, will decrease its consumption. The
expansion strategy of product development leads to changing the preferences of consumers that
can make a valuable product to become worthless.
Diversification: It is related with the growth of business as well as its development in the
case where the company will engage in developing new products in new market. It will help
Marks and Spencer to remain competent as well as innovative. Vertical diversification involves
various growth and development opportunities by launching new products under same product
categories. On the other hand, horizontal diversification includes, engaging with new
developments in products where the launching of the same is not related with the existing
products.
It is helps in sharing a similar economic environment along with visiting products.
Another methods in this is to diversify in new businesses, it includes engaging in different
business apart from fashion retail (Muñoz-Bullón, Sanchez-Bueno, and De Massis, 2020). The
company has to look for new business ideas and associated options that will help in successful
launching of the same. Meanwhile, diversification can lead to reduce the quality of the products
and making the business operation too complicated to be managed. Diversification will demand
for new set of skills that is hard and expensive for the company. Mismanagement within the
diversification process will result in over expanding in new directions.
The strategy for market penetration is the most suitable for the company as it allows
quick diffusion and adoption of the product within market place. This strategy is known to be
efficient and will discourage competition thus, developing goodwill. Market penetration will
allow the company t reach out to maximum target audience without putting in a lot of expense in
the same process.
PESTEL analysis
This analysis helps for companies such as Marks and Spencer to have understanding
regarding its market dynamics and improving the business in the process. It assists in identifying
business tactics in accordance with various external factors and highlighting different ways that

might influence the business of Marks and Spencer. This firm has managed to survive the
unstable market environment during and post- pandemic. However, the company has
experienced many losses in same duration.
Political: The presence of the company is within a lot of countries and the business
operations are therefore affected by the political situations at these locations. The company has
gained many benefits from the trade agreements that helped in decreasing the sourcing costs. The
rules and regulations by the government to control health and safety in considerations with
pandemic has negatively impacted the company as it includes nationwide lock- downs that made
the business to bes shut down for such a long period of time. The company believes that it is very
important to work closely with the government while interacting so as to protect the legitimate
interests of the organisation. In addition to this, the increase in taxes have lead Marks and
Spencer to increase the price of their products thus producing negative implications to its
customers regarding the sales. Moreover, the effects of Brexit there are many policies that no
longer apply to the company and thus, making it hard to keep up with the placed taxes
(Schlömer-Laufen, and Rauch, 2020). This will affect the brand in terms of shipping out its
products from England. Brexit have lead to giving rise to increasing the production costs and
losing its customers.
Economical: Covid has resulted in having a huge hit at the economy of the country to fall
down to large extends as maximum of the businesses were shut down. After and during the times
of Covid, the public is more interested in investing in daily commodities rather than luxury
items. These potential customers and target audience of Marks and Spencer is shifting the market
trend towards smaller retail stores as they offer lower price. However, by this, the company can
retain its premium status. Post- covid has resulted in rise in inflation as the demand of the
products is increased. This impacts the way company operates its business. This financial crisis
has lead to decrease the demand of high quality products sold by Marks and Spencer. This
situation of recession has affect the ability of the company to give discounts to its customers.
Social: After Covid, customers of the company are scared in being exposed to crowded
spaces. Due to this, Marks and Spencer has taken necessary precautions such as using thermal
guns for the purpose of temperature checks and the not allowing heavy crowds in its physical
stores to avoid any spread of the virus. Moreover, this brand is known to be the brand of youth as
majority of the products from the company is related with the latest trends and generations. The

company has modified itself in accordance with the needs and demands of its customers and
their changing tastes. This pandemic have resulted in increasing the level of unemployment
within the country thus, declining the purchase power for Marks and Spencer.
Technology: There is constant up gradation in the technology and its advancements thus
helping the business of the company to run in efficient manner (Kuusela, 2019). IT systems will
help in increasing the productivity of the work done while lowering the costs. Marks and Spencer
managed to conduct its business operation during Covid the help of its selling is products on
various online platforms. This eliminated the chance of limiting its customer base in terms of
their geographical position. It increased its sales as there are many potential customers that prefer
to buy online rather than going to the physical stores. The company have provided in- store
customer assistant for its customers to help them gain information regarding its products and
services. Company must invest more in allowing self- checkout facilities to its customers coming
at physical stores. This will help in developing a modern- day image for the brand. This
technology will lead to save time for the customers and make the company save money that was
spent on cashiers. Thus, offering its customers faster and the best experience. With access to
online shopping, the company has managed to go with the trend and deliver goods directly to the
buyers.
Legal: This brand has to face many issues related to the legal aspects of the business.
These legal lawsuits have made to destroy the reputation of the brand image that is being in
existence from a long time. The laws to operate in the fashion retail industry is changed post
Brexit effect and is yet another factor that affects the business of the company and will avoid for
the business strategy to elevate (Yusop, 2018). There are many claims from Marks and Spencer
that have proved to be false and destroyed the brand reputation. In addition to this, company is
also known to follow some unethical practices. There are several lawsuits against the company
regarding its practices with its employees and workers. Some have claimed to be paid with half
of the amount when they over worked.
Environment: Marks and Spencer is known to be the luxury brand that is highly
concerned about the environmental affects from its manufacturing and production process. It is
aimed to promote the concepts related with the working sustainable in the retail industry. It
works carefully with its production process. The company is expanding its business to produce
sustainable clothing during these high times of climate change. Moreover, the company is selling

fair trade products that allows to have smaller retail business to receive less cost of production.
Therefore, putting a hand forward in working with environmental friendly production methods.
SWOT Analysis
SWOT analysis or SWOT matrix refers to the strategic planning and management
technique which helps an organization to identify its strengths, weakness, opportunities and
threats related to the business management. It consists of the external and internal factors which
are favourable and unfavourable to achieve the objective of the company. It can affect the
working, operation and reputation in the market and also identifies its competitors which affects
its operations. Due to the pandemic various companies have shut down their stores from various
countries. Here, is the SWOT analysis of Marks and Spencers:
 Strengths : Strengths are the characteristics of business which makes it different from
others. Marks and Spencer has been in the market from past many years and is one of the
leading retail businesses in UK. The brand offers the services of their products both
online and physical stores and also helped the company to provide its services globally. It
also has achieved second most popular brand vote. It provides the best quality of products
which makes it different from other brands(Juaneda-Ayensa, et.al, 2019). The company
has adopted the principle of equal opportunities by ensuring that there is no
discrimination among the employers and employees working. The company possess its
own brand labels as well and provides vast collection of their products and resulted in
better communication with the customers.
 Weaknesses:Marks and Spencer execute their business operation manually which results
in consumption of time and increases the cost. The company should adopt the latest
technology to increase the efficiency of the company. There has been decline in the sales
of the company before COVID-19 and has impacted its sales after is more. The
company's annual sale decreased due to poor supply chain which affected the profits of
the company(Ponds, et.al, 2018). Many people assume that brand is for elderly people
and less for teenagers which affects the reputation of the company. They also need to
protect their brand from misuse by fake artificial products.
 Opportunities:The main opportunities available with the company are they should
introduce new market segments to offer more profit and can expand their brands in

various countries keeping in mind the requirements of the customers. Its main motive
should be to increase its branches to other countries. Due to the pandemic, people avoid
buying products available in the stores and choose to shop online so the motive of the
company should focus on the growth in the online sector(O'Connor, 2017). The company
has recently launched its retail stores in many countries and should focus more in
expanding its market and avail maximum benefits.
 Threats: Threats are the various components in the environment that can cause a
problem of business and can damage its reputation in the market. The other competitors
in the market such as H&M can cause threat to the company as they offer their products
at discounted rates. The present competitors have made the retail sector more competitive
and by adopting the plans such as offers it can take competitive advantage over other
companies because due to the pandemic many companies has suffered huge loss. If the
company did not make the modifications and necessary changes in its plans and policies
then the company's profits would suffer and will result in shutting down of the stores in
the respective countries.
Porters 5 forces
THREATS OF NEW ENTRANTS
New entrants will innovation in the market and products, will find new ways to do things and
will build the pressure on Marks and Spencer by lowering the price and reducing the cost and
providing various new proposition to their customers. Marks and Spencer can tackle the new
entrants by innovating new products and services which will attract new customers as well as it
will give old customers some reason to buy the new product that is in trend. Building capacity to
spend money on research and development which will not be done by the new companies and
this will give the M&S an overheard above the competitor head (Varelas, and Georgopoulos,
2017).
BARGAINING POWER OF THE SUPPLIERS
Most of the companies which are in retail sector buy their raw material from more than1
suppliers. Powerful suppliers will use their negotiating skills to extract the higher prices from the

firm. The main threat of this factor is that it will decrease the overall profitability of the
company. M&S can build their own supply chain with various suppliers. The company can use
dedicated suppliers whose business depends upon the company so that they don't have the
negotiating power.
BARGAINING POWER OF THE BUYERS
Buyers will always be looking for a good offer to buy more and pay minimum as much as
possible. Giving offers and attracting customers is not bad but it will affect the company in long
term period. If the customer base is small the strong the customers will seek for more offers and
discounts. M&S doesn't have to worry about the discounts and offers because they have a policy
of fixed rate and have a huge customer base which allow them to reduce the bargaining power of
the customers and will contour the sales and production process and by bringing the new
products and making them limited edition can bring the bargaining power of the buyers to zero
as every one will wish to buy the new and updated products that are limited edition (Hribar, and
et.al. 2020). If the company keeps on bring the new and innovative limited editions the company
will have face a sudden hype in the market and can be considered as one of the most innovative
brand. Although it is not necessary that every limited edition product shows the same response as
another. Bringing up new products will attract their rivals customers.
RIVALRY AMONG THE EXISTING COMPETITORS
If the rivalry in the industry is high and intense that it might lead to reduction in prices and might
increase the cost which will result in decrease in profitability. M&S already operates in a very
competitive retail environmental. The main competitive business which is Zara, Walt-mart. They
are main competitor in the retail industry and M&S will have to be very cautious competing
against one of the very large brands in the fashion industry. M&S should build a differentiation.
Both the companies should build scale of their brands accordingly so that they can compete
better. One of the best strategy could be that collaborating with the competitor to increase the
market share instead of competing for small market (Wen, and et.al. 202).

Threats of Substitute Products or Services
When a trademark fresh commodity or service meets the similar customer needs in
numerous ways, industry cost-effectiveness suffers. The threat of a substitute product or service
is extraordinary if it offers a worth proposal that's uniquely diverse from current offerings of the
industry. Marks and Spencer continuously innovate their product and services in order to keep
the position strong in the marketplace. M&S mostly target the product in order to acquire benefit
over the competitors. The company gives more efforts on services rather than just focuses on
product. The organisation recognises essential needs of consumer rather than what purchaser is
procurement from the company. In the marketplace it is very easy to reproduction the style of
product but hard to innovate the product of a company. The markets have wide variety of
substitute good and services in the market. The customer demand increases in day to day like so
company M&S use different plans of action in order to beat the substitute good and services
available in the competition.
IMPLEMENTING PORTERS 5 FORCES
By analysing all the external competitive forces M&S strategists can come up with the strategies
which can gain the complete picture of the various impacts on profitability of the company. By
understanding the challenges the company can turn these challenges into the profitable strategies.
CONCLUSION
The report discusses about the company Marks and Spencer and the impact of the
coronavirus the company has faced. Some analytical tools and frameworks have been used to
analyse the impact of corona outbreak on the business. The analytical frameworks include Porter
5 Forces, SWOT, PESTEL and Ansoff Metrix model. The report shows the analytical results in
context of the business so that the threats and weaknesses can be avoided by implementing
correct strategies to overcome these problems. The report also shows the implementation of
various strategies which can turn the competitive threats into the profitable strategies if
understood properly.

REFERENCES
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