Marketing Essentials: Analysis of M&S Marketing Strategies and Plans

This report provides a comprehensive analysis of the marketing strategies employed by Marks and Spencer (M&S). It begins by exploring the crucial role of marketing within an organization, emphasizing its impact on customer engagement, sales, and communication. The report then delves into the 7 Ps of the marketing mix—product, place, price, promotion, people, process, and physical evidence—comparing M&S's approach to that of Burberry. A key focus is the development and evaluation of M&S's marketing plan, incorporating PEST and SWOT analyses to assess political, economic, social, and technological factors, as well as the company's strengths, weaknesses, opportunities, and threats. The marketing mix, including product, place, price, and promotion strategies, is examined, and the report concludes by summarizing the critical role marketing plays in driving organizational growth and success, particularly in identifying and meeting consumer needs.

Marketing
Essential (Unit 2)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO1 Role of marketing and its inter relation with other functional units of organization..........1
LO2 7 P'S of marketing mix to achieve the overall business objectives....................................3
LO3 Developing and evaluating a marketing plan.....................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is the process through which goods and services move from concept to the
consumer. It involves creating, communicating, delivering and exchanging offerings that provide
value to the consumers. Marketing is extremely important as it helps the organization in
identifying their potential customers and developing products according to their needs and wants.
Marks and Spencer is a British Multinational fashion company that sells high quality clothing to
its customers (Unnithan and et.al., 2018). The organization has more than 1400 stores worldwide
and its provides employment to more than 80,000 people globally. The current study will focus
on the role of marketing in the success of an organization, importance of marketing mix to
achieve the goals and objectives and also the evaluation of marketing plan for Marks and
Spencer.
MAIN BODY
LO1 Role of marketing and its inter relation with other functional units of organization.
Marketing has played a significant role in the success of Marks and Spencer company
because M&S used appropriate marketing strategies in order to develop the products and
services. The company identifies the needs and wants of its customers and then manufacture the
clothes at a competitive price in order to achieve an edge over other players in the market.
Role of marketing in the success of an organization:
 Engaging customers: Marketing helps in attracting customer towards the products and
services. Certain marketing activities like developing of an innovative product or service,
promoting it in a unique manner automatically leads to consumer engagement which
further leads to consumers buying that product or service. Marks & Spencer has always
been a pioneer of creating new designs which has helped in attracting customers and
increasing their sales and profitability (Ryynänen, 2016).
 Boost sales: The most important role of marketing is that it has not only helped Marks
and Spencer in attracting new customers but the company also successfully retain its
previous customers which has increased their sales and profitability incessantly. With its
unique promotional strategies and quality of products and services, the company has been
successful in establishing its brand image which further lead to increasing sales and
customer base.
1

 Communication channel: Marketing acts as a communication channel through which an
organization informs its customers about the products and services offered by them, its
uses, price and the value created by them. Adequate communication between Marks and
Spencer and its target customers helped the organization in achieving customer loyalty
and also led to competitive advantage in the market (Russo, 2016).
Inter relationship between marketing and other functions of management:
 Marketing and Production functional units: The production department is concerned
with manufacturing of goods and services that are to be sold to the potential consumers.
Both marketing and production department are the pillars of Marks and Spencer as the
company would fail without the presence of any one functional unit. According to Toms
and Zhang, (2016) both marketing and production units work closely with each other
because the marketing department communicates to the production department regarding
the quality and design specifications of the clothes as laid down by the consumers and
also helps in communicating the total units to be produced within the particular time
schedule.
 Marketing and Finance functional units: In the view point of Sparks, (2018), the
finance unit at Marks and Spencer is concerned with allocation and distribution of funds
to different departments therefore it is imperative for both of these departments to work
closely as marketing department provides information to finance department regarding
the budget needed for the purpose of research, promotion and distribution of goods and
services.
 Marketing and human resource functional units: Human resource department deals
with the recruitment and selection of employees in the organization. The Stead and
Hastings, (2018) has stated that marketing department of Marks and Spencer
communicates the human resource department regarding the skills and talent required in
the organization in order to meet the customer needs effectively and efficiently. Also, the
marketing unit provides information to the HR department regarding the training and
development of the individuals.
2

LO2 7 P'S of marketing mix to achieve the overall business objectives.
The marketing mix is concerned with a set of actions or tactics used by a company in
order to promote the product or service. The main objective of marketing mix is to control the
company's market plan.
Marketing mix Marks and Spencer Burberry
Product M&S sells and distributes
clothes for people and children
of all age and gender. The
company also manufactures
and sell food products,
household items and groceries.
Burberry is a leading fashion
brand in UK that mainly deals
in manufacturing and selling of
clothes and accessories. The
range of products offered by
Burberry as compared to
Marks and Spencer are very
less.
Place Marks and Spencer has more
than 1400 stores worldwide so
that it can distribute goods and
services to its customers
through an effective
distribution channel.
According to Jones and
Comfort, (2019), Burberry
owns more than 475 stores all
around the world which is
much less as compared to
Marks and Spencer thus it
signifies that the company has
a smaller customer base as
compared to Marks & Spencer.
Price The Marks and Spencer follow
competitive pricing strategy in
its marketing mix portfolio as
it helps them in achieving an
edge over other players in the
market thus increasing their
overall profitability.
The Burberry organization has
established an image for itself
as a luxury brand therefore the
products are highly priced for
its target customers. The target
customers of the company are
very small compared to Marks
and Spencer's.
3

Promotion M&S spends huge funds when
it comes to promoting their
products and services. The
organization targets both kids
and adults therefore they use
various promotional tools like
advertising, print media and
social media to increase the
sales of their products and
services (McDonald and
Wilson, 2016).
Burberry heavily relies on
celebrity endorsements to
promote its fashion line. The
company enjoys a strong
goodwill in the market
therefore there is a less
requirement for them to
promote its products through
various channels. Also, it
reduces the marketing cost of
the company and increases
their profits.
People M&S employs more than
80000 skilled employees and
also provide them with
incentives and rewards to
boost their productivity to do
the job.
Burberry employs 10,000
employees worldwide and
provide them with adequate
training and development in
order to improve their
efficiency and effectiveness.
Process M&S follow a systematic
process to sell their products
and services through an
effective logistics system
which help the company in
achieving competitive
advantage.
The manufacturing and selling
procedure of Burberry
company is comparatively
expensive as the company has
a smaller customer base
therefore it fails to achieve
economies of scale.
Physical evidence The physical stores and
products of M&S distinguish
themselves from the
competition as they are more
colourful and have an
The products of Burberry are
of premium quality and also
the stores are very beautiful
which further attracts the
customers.
4

attractive logo.
LO3 Developing and evaluating a marketing plan
The marketing plan includes the marketing strategy of a company that will help them in
achievement of organizational goals and objectives. The marketing plan of Marks and Spencer is
as follows.
 Objectives: The objective of M&S is to build a sustainable business by providing good
quality products to its customers and thus maximizing the profitability of the
organization.
 PEST analysis
Political factors: According to Sulaiman and Syahrivar, (2018), The political factors can affect
the growth prospects of the company because of BREXIT. BREXIT will lead to increase in tax
rate and would hamper the smooth operations of the company in European countries.
Economic factors: The economic factors include inflation and change in interest rate. The
inflation in the UK has affected the sales of M&S and the company needs to reduce its prices in
order to increase their market share (Išoraitė, 2016).
Social factors: Social factors include the attitude, buying behaviour and income level of the
people in a society. With the increasing change in socio cultural factors it is important for Marks
and Spencer to analyse these factors timely and then develop the products and services
accordingly.
Technological factors: The Marks and Spencer must use latest and upgraded technology like
selling of products and services online and use of artificial intelligence in order to promote their
products as it would help in increasing their sales and also reduce the operating cost of the
company.
 SWOT Analysis
Strengths:
The company focuses on providing the best possible experience to its customers which has
helped them in not only adding new customers but also retaining their previous customers.
Marks and Spencer provides huge variety of goods and services for children and adults of all age
group (both men and women) which has increased their market share to 8.1% thus making it the
largest clothing retailer in UK (Datta, Ailawadi. and Van Heerde, 2017).
Weaknesses:
5

The company needs to reduce its overall production cost as it has led to reduced revenue and a
significant decline in their market share.
The employees at Marks and Spencer resist to change which has significantly reduced the sales
of the company therefore it is imperative for the organization to motivate its employees so that
they can successfully implement the changes.
Opportunities:
The company enjoys a strong brand image and has the opportunity to expand its operations
online which can lead to adding of new customer base and increase profits significantly.
Threats:
The increasing entry of new players into the market has increased the competition level and
reduced the market share of M&S which has led to shutting down of stores. Therefore, it needs
to reduce their prices and improve its marketing strategy (Byskata, 2017).
 Budget:
Particulars Amount
Raw material cost 250
Direct cost 300
Overheads 350
Marketing cost 600
Total 1500 Pounds
 Marketing mix:
Product: According to Bernon, (2018) M&S provides variety of products to its customers that
create value for them. The company provides different products and services like clothing,
household items and groceries as it helps in increasing their sales.
 Place: Marks and Spencer operates in more than 50 countries with over 1400 stores thus
it helps the company to provide better services to their customers and also it reduces their
overall cost through adequate supply chain system.
 Price: In accordance with Ahmed, (2016), Marks and Spencer sells its goods and services
at competitive prices in order to increase their overall market share. The aggressive
pricing strategy has been a major reason behind company's success.
6

 Promotion: The company promotes its products and services through various sources like
Television, internet, corporate events and sponsorship programs because promotional
activities have played an important role in company's success and growth.
7

CONCLUSION
From the above study, it can be concluded that marketing plays an important role in the
growth and success of the organization. It helps in identifying the needs and wants of consumers
and then developing a product accordingly which also helps in increasing the sales and
profitability of the company. Marketing is also inter related with all other functional units of an
organization. The report further included comparison between 7P's of marketing mix of Marks
and Spencer and Buerberry in order to identify the growth objectives of the organization. Also, it
included a marketing plan that can help improving the profitability and reduce the cost of M&S.
Thus, it can be concluded that marketing plays a very important role in increasing the sales of a
product and also helps the company in achieving competitive advantage.
8

REFERENCES
Books and Journals
Ahmed, U., 2016. Marks & Spencer: A Global Expansion to Acquire Lost Momentum?.
In Market Entry in China (pp. 61-72). Springer, Cham.
Bernon, M., 2018. Sustainable supply chains: Marks & Spencer’s Plan A. The Business &
Management Collection.
Byskata, A., 2017. B2B Marketing Plan for the UK Market: case: Plantui.
Datta, H., Ailawadi, K.L. and Van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing.81(3).pp.1-20.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International Journal of Research–
Granthaalayah.4(6).pp.25-37.
Jones, P. and Comfort, D., 2019. Stories and Retailer Brands: A Study of the UK’s Leading
Retailers. Indonesian Journal of Sustainability Accounting and Management.1(2).
McDonald, M. and Wilson, H., 2016. Marketing Planning: Yes, it really works! Experiences
from the real world. Marketing Plans, p.603.
Russo, J.E., 2016. How Boeing reframed its supply chain to build the dreamliner. The Business
& Management Collection.
Ryynänen, K., 2016. Brändin tunnettuuden kehittäminen elämyksellisyyden avulla: Case: Marks
& Spencer Jyväskylä.
Sparks, L., 2018. Sustainable Development and Food Retailing: UK Examples. In Food
Retailing and Sustainable Development: European Perspectives (pp. 67-80). Emerald
Publishing Limited.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing (pp. 29-43). Psychology Press.
Sulaiman, J. and Syahrivar, J., 2018. The Influence of Marketing Mix 4A and Ethical
Consciousness towards Ethical Consumption.
Toms, S. and Zhang, Q., 2016. Marks & Spencer and the decline of the British textile industry,
1950–2000. Business history review. 90(1). pp.3-30.
Unnithan, D. and et.al., 2018. Crowdsourced fashion designing of Hashboosh. com: the
sustainability dilemma. Emerald Emerging Markets Case Studies.8(2). pp.1-18.
9

van Helden, J. and Alsem, K.J., 2016. The delicate interface between management accounting
and marketing management. Journal of accounting and marketing.5(3).
10