Marketing Plan Report: Analyzing Marks and Spencer's Strategies

This report presents a comprehensive marketing plan for Marks and Spencer (M&S), a UK-based retail company facing competition from major players like ASDA and Tesco. The report begins with an introduction to marketing planning, emphasizing the importance of understanding the current market position and developing effective strategies. It then delves into various changing marketing perspectives, including the production, product, and selling concepts, as well as the significance of situational analysis and integrated marketing communications (IMC). The report highlights M&S's internal capabilities, such as financial resources, brand image, and skilled workforce, and then explores techniques for conducting an organizational audit, including Porter's Five Forces and setting standards. Furthermore, it examines the external factors influencing marketing planning through a PESTLE analysis, covering political, economic, social, technological, legal, and environmental factors. The report concludes by identifying barriers to marketing planning and providing strategic recommendations for M&S to enhance its marketing efforts and achieve sustainable growth.

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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
1.1................................................................................................................................................3
1.2/M2.........................................................................................................................................4
1.3................................................................................................................................................5
1.4................................................................................................................................................8
2.1................................................................................................................................................9
2.2..............................................................................................................................................10
3.2..............................................................................................................................................10
3.3..............................................................................................................................................11
3.4..............................................................................................................................................12
3.5..............................................................................................................................................14
4.1..............................................................................................................................................15
4.2..............................................................................................................................................15
4.3..............................................................................................................................................16
CONCLUSION..................................................................................................................................17
REFERENCES...................................................................................................................................18
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Adewunmi Agoro, ID: 21951, AB224B19

INTRODUCTION
Marketing planning is a procedure of developing a roadmap for the actions which a
company has to perform for carrying out its marketing activities. The marketing activities include
branding, packaging, pricing, advertising and so on. Marketing plan is a company's procedure
which is carried on for the purpose of understanding prevailing and current position of organization
in market. Therefore, in order to achieve the marketing objectives of company in the most efficient
and suitable manner, the marketing strategies are prepared. These strategies are prepared only by
conducting the marketing and organizational audit by taking the external and internal environmental
components in mind which affects the growth of company (Jobber and Ellis-Chadwick, 2012).
Looking at the present scenario of competition in retail sectors, the following assignment is
made on developing the marketing plan for Marks and Spencer (M&S). M&S is a UK based
company that is constantly facing the situation of competition with companies like ASDA, Tesco
and Sainsbury etc. In order to overcome this situation, the researcher has focussed on identifying
the barriers which affected cited company to attain the sustainable growth. Further, researcher has
made a marketing audit for M&S to analyse the external and internal factors which can affect the
company' growth. Later, in report, researcher will make a study on certain ethical and legal issues
such as consumer rights and so on which also act as an influencing can factor in marketing
planning.
1.1
Marketing is an activity which keeps on changing and demands for more new and
innovative ideas to market the products and services. At the time of creating a marketing plan for
Marks and Spencer, it is essential to look into the available marketing resources, marketing
objectives and techniques used to sell the products. There are different changing marketing
perspectives in marketing planning which helps in determining the possibilities for failure and
success of marketing plan (Lovelock, 2011). Therefore, the way in which management of M&S
understands these viewpoints will give cited company a benefit of gaining marketing position in the
crowd of competitors. The certain changing perspectives are discussed below:
The Production concept
One of the changing perspectives of marketing planning is the production concept.
According to this concept, company should produce the goods and services in large amount. This
will leave a choice for the consumers to buy commodity at an ease as goods and services are
available in abundant. This will give an advantage to company for ensuring the production activity
at a low cost. So basically, Marks and Spencer can focus on mainly manufacturing as many units as
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possible. This concept focuses on achieving high production efficiency, low cost and mass
distribution (Hollensen, 2015).
The Product Concept
The other changing perspective of marketing which arises at the time of making marketing
planning is giving importance to the product concept, that is, consumers are now a day becoming
more product conscious with respect to its quality, performance and uniqueness. This viewpoint can
also influence and affect the marketing planning of Marks and Spencer in both positive and
negative way (Chowdhury, 2015).
The Selling Concept
Another changing perspective which is taken in consideration in marketing planning is the
selling technique which is used by M&S to market its product. This means that company can use
aggressive method of selling its goods or different promotional methods can also be used.
Situation Analysis
Further, the other perspective to be considered in marketing planning is situational analysis.
This means that once the cited company has tapped the market demand, customer’s tastes and
preferences, competitor’s strengths and weaknesses as well as market positioning of products sold
by M&S then it can adjust its marketing plan. Thus, company's objectives of becoming the leading
brand and providing suitable goods to consumers can be attained in an efficient manner (Johnston,
2015).
Evolution of integrated marketing communications, (IMC)
It is all about the process by which marketers ask ad agencies to coordinate with respect to making
use of variety of promotional tools rather than just relying on media advertising. Hence M&S began
to coronate the various promotional elements and other marketing activities so as to communicate
with firm’s customers
1.2/M2
In order to identify company's capability for planning its future marketing actions and the
process which it will initiate to achieve the marketing objectives, it is necessary for management to
understand the needs and wants of internal and external market. Therefore, the capability of M&S
in achieving marketing plan is essential to identify the strengths of existing company. The main
strength of firm lies in the availability of financial resources in right quantity which will help
company to execute its functions in proper order. Looking at the scenario of market, it can be
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observed that it is not constant; it keeps on changing due to change in customer’s expectations. So,
cited company can use the innovative and advanced techniques for developing its goods. This will
give the firm a cost benefit which will ultimately lead to increase the sale of commodities.
Therefore, M&S has the ability to gauge the market in a right manner and provide the customers
with right type of product as per their needs and wants (Bitner and Gremler, 2012).
The capability of Marks and Spencer also lies in the fact that company has established a
well-known brand image of its products in the eyes of customers. This strong brand image will help
cited firm to enhance the sale of products in future also. Also, Marks and Spencer has recruited
highly talented and professionalised workforce who are capable of implement the marketing
strategies and activities in the most effective manner. This talent pool of staff assists the cited
company to maintain a sustainable competitive position in market by continuously bringing
innovation in ideas and techniques of marketing the goods and services (Mooij, 2013). Therefore, it
can be said that M&S is highly capable for planning its future resources as it has all the essential
requirements as discussed above such as finance, technology, market standing and personal
resources etc. in the right order.
1.3
Techniques for conducting organizational audit
Porters five force
Marketing manager of Marks and Spencer can make use of porter’s five forces to analyse the
organizational audit in company. Porter developed his Five Forces analysis in reaction to the then-
popular SWOT analysis. The model defines industry’s structure as well as forces that shape the
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nature of competitive interaction within an industry. It can thus be used by Marks and Spencer to
identify what kind of substitutes can act as a threat for its product and service range. Bargain power
of buyer and suppliers can further be assessed with the help of this model.
There are two types of methods which were used by marketing manager of Marks and
Spencer to conduct organizational audit in company. These are:
Setting Standard
The first and foremost work which company does in order to start the organizational audit is
developing benchmarks and targets for each and every activity which is to be taken place with
respect to market of new product and for establishing the marketing plan. Setting standards will
help the managers to compare the actual position and performance of employees with the set
standards. This comparison will help him to identify the loopholes and gaps between actual and
established performance. As a result, the activities can be performed with respect to the identified
gaps to overcome them. For example, a benchmark is set for the performance of employees which
will help the cited firm to determine workers who have underperformed (Gafurov, Kalenskaya and
Novenkova, 2012).
Observation
This is another technique by which marketing manager M&S can perform the organizational
audit. It is a technique through which the managers can keep an eye on the ongoing activity in
organization and performance of employees can also be monitored. This is achieved by looking into
the cameras and web cams which has been established at store of M&S. However, the data which
has been recorded in digital recorders such as cameras can be used by the managers to conduct
marketing audit.
External factors that affect marketing planning
The external factors which affect the marketing planning can be studied with the help of
PESTLE analysis. The PESTEL analysis of Marks and Spencer:
Political Factors
 Interference of government authorities.
 Political stability and instability. Taxation policies (Foxall, 2014).
Economic Factors
 Economic growth.
 Affect due to economic recession.
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Social Factors
 Changing preferences of the customers.
 Strong positive brand image by setting
policies for developing societies.
 Conducting corporate social
responsibilities (CSR).
 Changing lifestyles of users. Demographic changes.
Technological Factors
 Innovative techniques for production and
operations.
 Online marketing strategy (Zhou and
Cci, 2012).
 New inventions and developments.
Legal Factors
 Rights of consumers.
 Safety regulations.
 Competition laws.
Environmental Factors
 Taking out toxic chemicals out of
production process.
 First carbon neutral major retailer (Marks
& Spencer business
environment analysis, 2014).
1.4
The marketing team at Marks and Spencer has continuously indulged themselves in carrying
out the organizational examination. This audit takes place to determine the external factors which
are affecting marketing planning activities and helps in the execution of marketing plan in a smooth
and efficient manner (Cruceru and Rădulescu, 2014). The method which has been adopted by M&S
to conduct external marketing audit consists of PESTEL analysis. It is as follows:
PESTEL analysis
Political Environment
The actions which are taking place at M&S for carrying out the marketing activity are highly
affected by political interferences of government. These activities are largely subjected to
intervention of political pressure which local authorities put on company. The firm’s market is
spread not only in UK but in different parts of the world and every country has different ruling party
and has their own rules and regulations. The political factors include things like political pressure of
controlling authorities, trade restrictions, trade barriers and so on (Rikhtegar, 2013).
Economic Environment
The economic environment is highly affected by the economic crisis which can impact the
company’s overall functioning. Say for instance, the rate of inflation goes up and also there is
situation of highly unemployment in country due to recession period. This will negatively affect the
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cited company as the sales will get reduce because of which company will not be able to generate
revenues. Similarly, the change in currency rates will also affect the pricing of goods and services
(Dibb and Simkin, 2008).
Social environmental factor
There are certain social and environmental factors which affect the functioning of existing
firm, that is, Marks and Spencer. The social factors like change in living style of people in
community and change in customers’ needs and wants can affect the marketing planning of M&S.
For example, the increasing standard of living will automatically lead to increase in the sales for
company as customers will buy standardised clothes. Also, there are environmental factors like
increasing CSR activities and adopting the environmental friendly and renewable resources for
manufacturing of goods.
Legal and technological factors
The legal cases and lawsuits filed by many competitors like ASDA and Tesco will affect the
brand image of company. Therefore, planning has to be done for M&S in such a way that company
can overcome all legal barriers. Further, several new techniques are available which are highly
advanced and the major benefit of using those techniques will be achievement of low cost (Gilligan
and Wilson, 2012).
2.1
After preparing the marketing plan, senior marketing manager observed that there were
certain barriers which were affecting at the time of preparing marketing plan. Marketing planning is
a sequence which is adopted by the planner of events which company has to adopt to define the
marketing goals. This is an activity which requires drawing a plan to attain those goals. There are
certain barriers which were observed by marketing manager at the time of making plan. These
barriers are discussed below:
Obstruction related with changed consumer behaviour
The consumers generally have capacity to react in different manner in any situation.
Therefore, marketing manager of M&S has to make the correct investigation with respect to the
needs and wants of customers so that in accordance with their desires, company can develop their
marketing strategies and also, decisions regarding new product can be taken.
Barrier in relation to Non-Availability of then funds
The development of marketing plan incurs huge cost because of which cited company has to
bear heavy expenses. Therefore, it may happen that company may lack in available funds with them
which can act as a barrier in the development and execution of plan. The cost is required in hiring
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the highly expert professional who has the complete knowledge of making plan. Also, the cost is
incurred in conducting the marketing research and in providing training to existing staff to adopt
changes which has been implemented because of new plan (Thimothy, 2015).
Obstruction related to getting marketing professional
For the effective and efficient development of marketing plan, it is necessary to hire the
professional staff in company who can correctly develop the plan based on his/her experience.
Therefore, this can act as a hurdle as getting expertise in less time is not possible sometimes.
Barriers related Technology
It has been observed that frequently the technologies are changing at a fast pace. As a result,
various new techniques have been evolved for creating the marketing plan. It is also possible that
every technique is having its own positive and negative points. So, choosing the best method for
making marketing plan is also another barrier for designing marketing plan.
2.2
Marketing planning has been regarded as a complex exercise by companies as they face several
barriers during implementation
There are several barriers that affect the formulation and implementation on marketing plan.
It is the responsibility of senior managers to evaluate all the implications associated with plan
before executing it in the corporate world. However, the factors which were acting as the hurdles in
making plan can be overcome by M&S. Therefore, to surmount the barrier to know the customer
preferences, company can hire agencies that can help them by conducting proper market research
(McDonald, 2009).
Further, it has been discussed that Marks and Spencer was facing a problem with availability
of funds. So, company can make some estimation related to cost which would incur during
marketing plan. These estimations will give an idea to managers about the requirements of capital to
develop the action plan. Another point of barrier which has been discussed above is related with the
selection of technology for developing the best marketing plan. This problem can be solved by
identifying the pros and cons of each method. The technique which has maximum positive points
can be selected.
Socio political, Legal, Economic and technological scenario may limit the business interactions
with the external environment. This happens as while marketing planning companies has to adhere
with Ethical norms and regulations. Regulations may lead to avoidance of comparison marketing by
the companies. This is an issue as market surveys are regarded as best form of marketing. This has
majorly helped M and S in comparing the product with the competitors.
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3.1
Marketing plan for chosen product being stylish clothes in market is as follows;,
Situational analysis
 Market goals – There is a need to determine the market goals to be undertaken by Marks and
Spencer with respect to its stylish clothes range. These can be related to increasing the sales
of clothes, enhancing the profits.
 Marketing strategy – The marketing strategy is then needed to be defined on the basis of 7p
of marketing.
 Budget and Plans – after the strategy has been planned the need is to form a budge on the
basis of financial position of company.
 Metrics and adjust – The plan is then to be administrated followed by making adjustments in
the same.
3.2
The significance of Marketing planning in strategic planning process for M&S is discussed
below:
For enhancing brand knowingness
The proper and well marketing plan will assist the organization to create a strong image of
brand name in the eyes of customers. This will help the firm to make its goods and services
acknowledged by the users.
For distinguishing merchandise from competitors
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Developing marketing planning in the most effective and efficient manner will help M&S to
make its product look different and unique from its competitors like ASDA, Tesco and so on.
To know the market perceptions
Marketing planning tells company in advance about its current market position and areas
where it is required to grow. In simple terms, it provides a roadmap to employees and management
of company to work and perform its operations in the same manner as required by the plan (Strauss,
2010).
3.3
On the basis of given situation, Marks and Spencer is interested in expanding their business
and in increasing the marketing share by introducing a new product in company. This decision will
help the firm to increase the profit ratio and to develop a strong competitive edge. Therefore, there
are various methods and techniques available which can help the cited company in introducing new
commodity. There is a series of stages which are followed at Marks and Spencer in order to develop
the new product. The steps include idea generation for developing product at first; feature
development for product in the second phase; thirdly the development of product and in last,
product testing is there (Hartley and Claycomb, 2013). The different techniques which can be used
by M&S to develop the new product are discussed below:
Brainstorming
The technique which is used by M&S to develop new product is by conducting
brainstorming session in the organization. Here, the groups and teams are formed in the cited
company for determining creative and different ideas for developing the product. Through this
session, every employee tries to find out several new and innovative ideas and strategies which will
help the firm to generate a new product (Mohr, 2013).
Expert Opinion Survey
For the purpose of developing new product in company, the management of M&S can take
opinions from the experts who are highly experienced person. This will help the organization to
generate more technically and feasible ideas and strategies. This survey will aid the firm to come up
with new product in the market.
Market Scanning
Another technique which can be used by M&S to develop new product for its customers is
by conducting the market research. As it is obvious that for coming up with the decision related
with launching new product in market, analysis plays a very crucial role in determining the trends,
preferences, current market standing of business and types of market strategies adopted by
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competitors such as ASDA, Tesco, Sainsbury and Next Plc.
SWOT Analysis
SWOT Analysis is the technique which can also be used by the cited company in order to
develop a new product. With the help of this tool, firm can be able to determine the strengths and
available opportunities in order to enter with new products. Also, threats and weaknesses can be
identified by company which will help them to remove such threats and to overcome the
weaknesses (Mullin, Hardy and Sutton, 2014). Further, it will assist in finding out the strengths
which will help the cited firm to successfully launch the new product in market.
Scenario Analysis
The assessment of condition of market and opportunities will be done by capitalising on
planned future demand or trends and the related user's needs. Company will get the advantage to
provide goods and services in accordance with the needs and preferences of its targeted customers.
This is an effective technique which Marks and Spencer can adopt while developing the new
product in market.
3.4
Positioning
For the purpose of making existence of stylish clothes in market, Marks and Spencer can
make a strong position in the market by providing highly fashionable clothes. The clothes which
will be now produced and manufactured will be of superior quality of material and would be in
different attractive and sober colours according to the latest fashion which is prevailing in the
market. Also, the products are being manufactured by keeping the consideration of targeted
customers (Turnbull and Valla, 2013).
Price policy
The Apparels manufactured and sold at M&S will have the starting price of £150. Marks and
Spencer has the rules and norms with respect to increase and decrease the prices of its commodities
in accordance with several occasion periods. As a result, this policy will assist the cited company to
remain away from price conflicts. The pricing policy of Marks and Spencer is premium pricing
policy and price skimming (Mohammad. and Seyed, 2013). This gives an advantage to the cited
firm in earning huge profits without damaging the brand image. The marketing planner has
suggested that company offer special discounts and offers to increase the sale of its products to
targeted group of audience.
Distribution
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