Principles and Practice of Marketing: M&S Brand Strategy Report

This report provides an in-depth analysis of Marks & Spencer's (M&S) brand strategy, focusing on its brand equity, marketing mix, and globalization approach. It examines the effectiveness of M&S's current branding strategy, utilizing models like David Aaker's customer-based branding and Prof. Keller's and Aaker's brand equity model. The report also incorporates Prof. Svend Hollensen's 'Globalization' theory. It explores M&S's brand recognition, identity, positioning, personality, and affinity, and how these elements contribute to its market share and customer base. The report also includes an overview of M&S's background, its strong business values, key strategies in retailing, and its relationship with suppliers. The report further analyzes the company's standardization and adaptation models, as well as the marketing mix. The report highlights M&S's commitment to quality, value, and customer service, as well as its efforts to maintain customer loyalty and trust. The report also discusses the importance of brand equity for marketing and how it affects the company's performance. Overall, this report offers a comprehensive understanding of M&S's branding and marketing strategies.

Principles & Practice of Marketing Student ID
Principles and Practice of Marketing
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Executive Summary
Brand equity is a ubiquitous tool in the hands of marketers and can compete with the competition
of various industries around the world. The value of a brand determines its market share and
customer base. Marketers have the responsibility to take advantage of becoming a brand leader
in a specific area. The marketing war requires brand positioning and competitive advantage in
the dynamic context of turbulence in all business areas. The development of brand equity is the
company's primary goal, and many models are researched to achieve this goal. David Aaker's
(1991) customer-based branding strategy and brand equity model is an application in this area
that involves brand equity in brand awareness, brand relevance, brand loyalty, proprietary assets
and perceived quality. This report highlights the effectiveness of Marks & Spencer's current
brand strategy, in particular, the brand equity model used by K L, Professor Keller and Professor
Aaker. Prof. Svend Hollensen's "Globalization" theory of the "Marks & Spencer" brand's
international marketing strategy is also included in this report.
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Contents
Background......................................................................................................................................4
Solution 1.........................................................................................................................................5
Brand recognition........................................................................................................................6
Brand identity..............................................................................................................................6
Brand positioning.........................................................................................................................6
Brand personality.........................................................................................................................7
Brand affinity...............................................................................................................................7
Effectiveness of Marks & Spencer current branding strategy.....................................................8
Solution 2.......................................................................................................................................10
Standardization and adaptation models.....................................................................................10
Marketing Mix...........................................................................................................................11
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
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Background
M&S firm is a UK based organization that has the great brand image of quality and reliability,
with the support of high quality product and trained staff. The M&S has a strong business value
which supports the brand image and portrays M&S as a trustful entity. M&S has implemented
some strong strategies in the few key areas of retailing, which have proven to be extremely
successful time and again. Marks & Spencer's products are sold with a motive that customers
receive the desired quality, value and service. The key is to keep the loyalty and trust of the all
the customers. They prefer classical fashion clothes and are also planning to subdivide the
products in diverse lifestyles. M&S organization Direct (online and directory shopping) has
easily improved in the customer convenience and service aspect, by helping companies reach
new generations of shoppers. The management team is supported by the development of strict
inventory control systems and high standard specifications (GRZESIAK, 2015). The relationship
with the suppliers is a unique model, of true long-term partnerships and involves commitments to
help suppliers improve. They have introduced the "Top 100 Profile and manager Breakfast
Club", in order to allow employees and managers to get together more often. This increases the
information and communication flow between different departments, from the conference room
to the workshop. The company has invested in this specific department to ensure that all
employees are trained for the high demands M&S customers expect, and they provide links to
their major policies and explain how employees lift their concerns (Rogers, 2018). A good
example for this is a recent "success-oriented" development plan based on brand value. This is
planned to help senior-level leaders to develop themselves and lead teams as well as
organizations to drive its business towards success (Araujo, 2016). This is a key component of
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the M&S's future personnel strategy. Success is the ability of a company to outperform
competitors. M&S has achieved great success in market share and profits. Therefore, we can
think that the company surpasses its rivals with respect to market shares as well as profits. This is
achieved through different methods. The organization's maturity, strategy, value chain
philosophy and control are crucial to its business success. The service and product differentiation
strategy are the main feature of M&S. The growth or development of the product “St. Michael”
as well as its creation like a British manufacturing quality mark are crucial to the company and at
a reasonable price. By offering or providing a warm cooperation service and ensuring excellent
shopping comfort and convenience, M&S stands out from other high-end retailers (Vizard,
2018).
Solution 1
Introduction
A well-defined as well as properly implemented brand strategy also affects all the aspects of
business as well as is directly linked to customer needs, emotions and the competitive
environment. First, explain the largest misconception about the brand strategy: Organization’s
brand is not a product, not a logo, website and name. In fact, the brand is more than that, it seems
to be unattainable, but it is a tough-to-pin-down emotion that energizes the powerhouse and mid-
range brands. Of course, business knows what they deliver to customers. It's easy to start
conversations with new possibilities because they quickly understand what you understand.
There is no consistent visual or impact of the products and company in the market, but generally
organization’s think it is positive. "Every brand has promised, but in a marketplace where
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customer confidence is low and the efficiency of the budget is high, not only to create a world
that separates a brand from another, but if there is a definite purpose (Vizard, 2018).
Brand recognition
For the last 125 years, M&S has been trusted by its customers to provide quality food, clothing,
and household products. M&S has grown from a Penny market stall to become one of the
leading retailers of UK with more than twenty-one million customers in the UK only and a
global expansion with more than 78,000 employees, of which 2,000 suppliers form the
cornerstone of the whole business and M&S will continue to provide quality, value, innovation,
and trust. M&S had previously stated that the main key to success in a food sector is to find its
brand goals and thus, had been working hard to replicate them in clothing. Nevertheless, M&S
announced a unique or new comprehensive merchandise strategy around "make every moment
special" (Lucarelli, 2018).
Brand identity
After a 12-month review by the brand Newell & Sorrell, this week M&S launched a new brand
identity, hoping it could be revived. After months of speculation about brand changes, new
signage will be introduced in the UK's 297 stores from summer. Max and Spencer's name
represent the brand and appear on all labels, packaging, and literature, and St. Michael's name
becomes 'St. Michael's promise'. The words, “Our commitment to quality, service, and value
leadership standards” will appear on the packaging. The famous M&S handbags adjust from dark
to light green, and Marks & Spencer's names are displayed in the new Optima font's "stack" logo
(Florek & Kavaratzis, 2014).
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Brand positioning
The decision to divide marketing responsibilities into two business units may seem like a step
backward for a retailer with such a strong brand, but it should be able to shift it more quickly and
focus more on customers, which are important things. In the past few years, M&S had been
bringing advertisements for management's two businesses - clothing and home, and food - and in
a reorganization of management; the strategy has changed quite dramatically. M&S want to
promote a “common attitude” that has nothing to do with consumers. Regardless of age or
population, he wants to position himself as an “inclusive brand (Lieven, Grohmann, Herrmann,
Landwehr & van Tilburg, 2014).”
Brand personality
M&S has been in existence since 1884 and for more than a century, the group has changed our
views and feelings about the UK retail world. Although M&S faced some obstacles at the time, it
also showed us the power of a brand that adheres to its values and aligns with its corporate image
while continuing to evolve. As one of the UK's first high-end brands, M&S survived recessions,
public relations nightmares, and droughts, and they still have a strong presence on the High
Streets in the UK. There are more than 300 stores in the UK alone (Farjam & Hongyi, 2015).
The latest logo highlights the core ideas of the M&S brand development over the years.
Although the "value first" core philosophy is still crucial to the company's personality, this value
must evolve as customers re-evaluate what is "special" and important to them. For example, the
recent "Spend some money" campaign has recently become a substitute for the "only M&S"
slogan to show that the company is now paying more attention to the needs of its customers and
the entire planet (Farjam & Hongyi, 2015).
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Brand affinity
Establishing a brand's affinity with consumers is certainly possible, but it is important to realize
that implementing it requires some strategies and planning, not something forced or created.
First, try to use the power of social networking. Listen to opinions of online communities, listen
to people's comments on your brand, and try to interact with them on a personal level. A better
understanding of the concerns of M&S customers also gives its customers the opportunity to
provide a higher level of customer service. There is a lot of evidence that costumer's perception
of the brand has improved and that it can handle online complaints or problems in a timely and
effective manner (Farjam & Hongyi, 2015). Brand affinity is the lasting and valuable one in
customer relationships and relies on a belief that customers and M&S share general values. This
is the highest and most durable type of customer trustworthiness that can create unshakeable trust
in this relationship. When customers think that M&S supports the value they are admiring, then
brand affinity is at the strongest level. Customers who have demonstrated an affinity with the
brand buy more, purchase more, and complain less than all other types of customers.
Effectiveness of Marks & Spencer current branding strategy
The importance of brand equity for marketing at least 30 years in marketing literature is
considered an intangible asset to the company's performance. The brand equity has proven to be
loyal and influential of the company's economic value. Client commitment to brand equity
management, and in particular, has shown that a strong commitment will bring competitive
advantage, such as low marketing costs and attracting new customers. The potential for customer
commitment is to choose the brand-endorse brand-concept (Hussein Ill, 2012). For M&S
aesthetic advantages, the brand policy must express the effect of the brand on sensory solutions.
Use the brand to look at the beauty aspect associated with consumption. M&S's aesthetic
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advantages are designed to satisfy the needs of the interior aesthetic. In general, brand equity is
defined by the brand's unique marketing effectiveness. For example, if a product or service does
not have a name in it, then brand equity is obvious because its brand name does not produce any
results of the product or services. There are many factors affecting M&S brand equity in which
the company's strategic insights and how effectively M&S can execute the implementation of
your chosen policies. However, one of the main drivers of brand equity is customer commitment
to the brand. What is limited to the M&S brand for the customer influences Mind's revenue and
stability and growth of profits, which protects the company from competitive threats? While the
direct impact of the functional brand on commitment is important, the impact of emotional and
emotional attachments is not important, i.e., functional brands strongly predict the actual
engagement over emotional attachments. Functional benefits are the basic and basic description
of product categories. Feeling of sensation and emotional attachment affect the customer's
commitment (Oliveira, Catano, and Kollo, 2017). The direct impact of emotional attachment on
commitment is important. However, the direct result of the sensory experience of engagement is
not important. That is why; the commitment to the customer is a strong indicator of the
emotional attachment than the awareness experience (Ahmad and Thirugraj, 2015). The
company soon became a household brand name, with a strong corporate image and trusted to
provide excellent “value for money" (Fan, 2014). This makes it stand-out from others and is
therefore more productive. Simon Max recognizes the market demand for quality products at a
reasonable price. He believes that most British suppliers can arrange these products, and he
quickly established closely ties with its faith suppliers. This association is very important. It is
incorporated into the company's core principles. Suppliers must provide high quality and high
quality products, which helps provide M&S with a large manufacturing product line that
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customers can trust. 'Locked' suppliers, exclusive distribution, own retail stores, an effective
internal network services as well as strong aftermarket support mean that M&S has a powerful
vertical integration system that can control its value chain. M&S's achievements are not only
attributed to the company itself, but any company’s success, creativity, hard work, and market
demand all need some luck. In the end of the 1980s, Michael Max did not continue to work in a
penny bazaar, or Simon Max had no idea of how to advance the business before the United
States, so that the company could not achieve the possibility of success. M&S is very effective
because it occupies the retail market and nobody else owns it. It is effective and maintains high
standards in product quality and customer transactions while maintaining a reasonable price.
M&S managers are committed to the company's beliefs and have established close ties with UK
suppliers (Hoque, 2016).
Solution 2
M&S's experimental involvement in market internationalization began in the 1940s, but
compared to most of the service companies, the company started exporting its overseas St
Michael brand abroad. In 1955, the company exported goods worth $ 1146,000. Early interstate
of the company is mainly due to domestic reasons. Internally, the company started to understand
that it is full of the domestic market, and this expansion needs to be done. Outside, some
members of the Labor Party have proposed to nationalize the country's leading retailers.
Therefore, internationalization is seen as a tool for diversity. There are some international
franchise relations in the export business. St Michael brand importers who are familiar with the
country's brand facility; they have also purchased the business models in M & S (Guzman,
Velhausu, and Pappu, 2017).
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Standardization and adaptation models
Standardization includes the use of the same products, the same price, the advertisement and
placement of M&S. The basic ratio of globalization methods is strengthening globalization; there
is the homogeneity of the customer's demand and demand. Standardization can focus on M & S
brands. Main competitive advantage and all markets allow the development of consistent and
robust brands. Accessing new markets, it is necessary to make policy-based decisions related to
the standardization of all aspects of the marketing mix with policy-level management, changing
the various aspects of products and services so that the needs of international market customers.
On the one hand, standardization is an important expense, but is closely related to some factors,
each related to market disparities, on the other hand, adaptation strategies can be applied to
address differences related to each individual market; however, there is an additional cost of
optimization, which requires M & S related The price of products and services can affect
competitiveness (GRZESIAK, 2015).
Marketing Mix
Promotion: M&S basically try to avoid ads and rely on word of mouth. The word of mouth is
powerful, non money-making, the company uses advertising in only a few cases, and for
example when M & S launches new products or retail formats, or when brands are less popular,
such as in-store acquaintances in Paris. M&S's media spending was around 4.7 million pounds,
while the other 10 leading retailers were 18.8 million pounds. The company's entire advertising
portfolio is also known as a marketing communications portfolio, which includes specific
advertisements, advertising, public relations, personal sales and direct marketing tools (Hooks,
2016). Customers understand how to value customers and build customer relationships. It is also
necessary to adjust or certify advertisements. This means creating ads that work in diverse
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countries as well as in cultures or creating different ads in every country. When M&S decides to
categorize ads, it creates effective advertising messages for sellers globally. Advertising
standardization means that all countries in the world will use the same promotional remedies
without any kind of change (Splilom, 2014). When M&S decides to certify advertising
information, they can decrease costs; however do not fail to remember that customers from all
nations are different. Advertisements may be influenced by advertising language, religion, laws,
economic differences, moreover the media availability. For all these reasons, it is necessary to
adapt promotion strategies.
Place: There are two basic forms of M&S stores. The first form is the general merchandise
where the basement is dedicated to the food and other traders only provide food. The average
shop area is 35,000 to 40,000 square feet and the inaccessible area is at least 100,000 square feet.
In recent years, the company is actively growing its storefront area; M & S is trying to find its
stores on the main streets of major cities, claiming that "it is important to build important objects
in the capital city or major cities, such as Germany's Rhine-Ruhr area. Due to the large variations
in channel distribution of countries, different sales channels and divisions Adjustment or
standardization of distribution channels depends on many factors, which means that customers,
cultures, and products are distributed. Distribution channels are part of the international
marketing mix and may have a more optimizer (Gezirska and Town, 2018).
Price: Mark and Spencer used a better pricing plan from the very beginning. Initially Michael
Marks put all his items or products on one side of the store and gave a slogan to the store, "Do
not ask for the price" and sell every product in Penny. In this case, the company must choose
between validation and adaptability, adaptation or standard decision depends on the various
factors. Companies to determine which methods is most effective Care must be taken for these
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