Marks and Spencer's Marketing Mix and Competitive Landscape: A Report

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MARKETING AND COMMUNICATION
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Executive Summary
The study effectively incorporates about marketing concept along with description of different
promotional elements. Discussing of necessity of attaining competitive advantages has also been
the major focus of the study. The study however dealt with overview of Marks and Spencer and
its core challenges and threats. Additionally, it has also been elaborated about pre-defined
criteria for improvising communication.
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Table of Contents
Coursework 1-Report.......................................................................................................................3
Introduction......................................................................................................................................3
Task 1: Needs, Wants and Demands...............................................................................................3
Task 2: Marketing Environment......................................................................................................6
Task 3: Marketing Mix..................................................................................................................10
Conclusion.....................................................................................................................................13
Recommendations..........................................................................................................................13
Coursework 2-Assignment............................................................................................................14
Introduction....................................................................................................................................14
Use of DRIP...................................................................................................................................14
Key target audience.......................................................................................................................15
Promotional mix element...............................................................................................................15
Key message..................................................................................................................................16
Promotional channels.....................................................................................................................16
Marketing communication mix......................................................................................................17
Method to measure effectiveness...................................................................................................18
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
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Coursework 1-Report
Introduction
“Outline the purpose of the report”
The major point of indulgence of this study is to explain different marketing concept and
contribution of effective communication in organisations like Marks and Spencer. It has also
been described about the interrelation of marketing elements and its impact on the decision-
making process of the organisation and reliability of consumer behaviour. Identification of
organisational challenges and issues are also highlighted. Being a Graduate Trainee of marketing
team of Marks and Spencer, a report is prepared considering the above stated aspects.
“Provide an overview of Marks and Spencer”
Marks and Spencer is one of the leading retailers in UK. This organisation is inclined towards
providing their customers with high-quality products and services. Marks and Spencer has more
than 1,463 outlets in 57 countries and has served more than 32 million of customers with diverse
products and services. The company deals in variety of products and services that is inclusive of
food items, home decor or fashion attires. Marks and Spencer has begun a turnaround in food
items. The items are unique and much preferred by the customers in the supermarket. Along with
this, there come Marks and Spencer’s clothing and home. The company focuses on restoring
style and value in this context. In current times, Marks and Spencer persists 25% of clothing
online market across UK (Corporate.marksandspencer.com, 2019).
Task 1: Needs, Wants and Demands
a) “Explain how needs differ from wants”
Needs and wants differ in various ways, it can be said that needs are the basic requirements
necessary for survival. On the other hand, wants something that is not essential for survival but
people desire it to have for their lavish living (Luxton et al., 2015). Under laid is a vivid
description of difference between the needs and wants:
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Comparison
Basis of Distinction Wants Needs
Nature Wants can be stated as the
goods and services that are
desired by an individual for
leading their life in a lavish
way. Wants do not have limits
(Finne and Grönroos, 2017).
Needs are the basic
necessities that is required for
survival. Needs for food,
shelter and clothing fall under
basic needs. The needs can be
limited in nature.
Representation Wants represents about
desires. For instance, wants
for fashionable attires, home
decor, cars or bungalows fall
under the category of wants.
These are not the basic
necessities but the desire to
showcase their peers.
Needs represent necessity and
consider primary or basic
needs for survival.
Non-fulfilment In case wants of an individual
is not fulfilled, this might not
lead to ultimate disaster for
impose to life threat. This
might only result in
disappointment (Petersen et
al,, 2015).
In case needs are not fulfilled,
this might even result in death
of the person. Along with
this, this can also result in the
onset of certain diseases.
Lack of fulfilment of needs
can also leads to certain
conditions like kwashiorkor,
marasmus due to malnutrition
(Mukherjee and Das, 2016).
Change Wants keep on changing with
the passage of time. Wants
Needs however, remains
constant throughout the
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also get updated with the
fluctuating trends of the
market.
lifespan.
Table 1: Comparison of needs and wants
(Source: Created by Author)
As per the Maslow’s hierarchy of needs, an individual has different level of needs that is
required to be fulfilled for better living. The needs are inclusive of self-actualisation needs;
esteem needs, belongingness and love needs, physiological needs and safety needs. Among these
five-tier needs, physiological needs are the most important needs necessary to be fulfilled.
Physiological needs and safety needs fall under basic needs for human. After completion of the
required needs, then comes the love, esteem and self-actualisation needs, and this can help.
However, in case of non-fulfilment, this might lead to death or health disasters. This can also
result in low motivation and poor morale of the people (Aithal, 2016).
b) “Using examples, discuss the needs, wants and demands of Marks and
Spencer’s customers”
Marks and Spencer is a great retailer that is inclined towards providing its customers with
diversified products and services. However, 32 million customers are served by Marks and
Spencer. The company effectively underpins the needs, wants and demands of the customers.
Marks and Spencer is committed towards introducing “transformation programme”, this can be
useful for supporting the potentiality of the brand and maintain sustainability. This can also help
the company to trigger their revenue generation (Marksandspencer.com, 2019).
Needs of the customers
Marks and Spencer ensures about conducting evidence-based research on knowing their
customer behaviour in order to analyse their needs. Marks and Spencer deal in variety of
products like foods, clothing or home necessities. It is necessary for the company to understand
the needs of customer in context of food items. For example, food items must have healthy
ingredients for maintaining good health of the customers (Marksandspencer.com, 2019).
Wants of the customers
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In order to understand about the wants of the customers, Marks and Spencer focuses on
enhancing the shopping experience and customer relationship. This can help the company to
understand the preferences of the customers. Strategies like maintaining sustainability is also
major concern of the company. Customers of Mark and Spencer want the company to know
about their wants and needs and accordingly seek for services and products
(Corporate.marksandspencer.com, 2019).
For example, customer of Marks and Spencer want perfect and classic range of products in
clothing or home decor. Customers also reviewed that they want “a dedicated range to fit and
flatter their curves”.
Demand of the customers
Customer diversity can help the concerned organisation to understand the demands of the
customers as per the changing marketing trends in sense of fashion or home decors. External
data and internal analysis is performed through which the fluctuating demands of the customers
are met (Mikeska et al., 2017). Proper conduction of external and internal market analysis is also
conducted through which the demands of the customers are fulfilled. Customers seek for updated
products from the company.
For instance, the customers of Marks and Spencer might seek for cost-effective and high-quality
products. Variety in fabrics is also preferred by the customers. Through the inclination towards
the transformation programme can also be effective for meeting the demands of the customers.
Task 2: Marketing Environment
a) “Describe situation analysis and discuss why it is important for Marks and
Spencer prior to setting a marketing strategy”
Situational analysis incorporates the micro and macro environmental analysis through which
organisations are able to acquire appropriate information regarding the market condition and
trends. Different elements like product description, pricing strategies, physical evidence, places
to operate and process of operation are also involved in the market analysis (Lee and Hanna,
2015). Under laid is the macro analysis through which Marks and Spencer is able to develop
their strategies.
Macro analysis for Marks and Spencer
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Macro factors Description
Political Marks and Spencer reduced their sourcing costs due to free trade policy
and Brexit has also led certain major effects on its operations. The
changing government and tax policies have also help the organisation to
reform its activities in terms of their products and services.
Economic UK has the 5th largest mixed economy with nominal GDP rate.
Government of the country took certain initiatives to develop the
economic condition. Marks and Spencer has various competitors and
thus, there are small conflicts among the companies due to impact of
Brexit.
Social Marks and Spencer however, is focused towards underpinning the
demographic factors and thus, also consider the demands of the
customers for “Made to fit and flatter” this can help the company to
meet the wants of the customers (Corporate.marksandspencer.com,
2019).
Technological Marks and Spencer announces new Technology Transformation
Programme that can help the concerned business to become digital-first
business and thus, can also deliver effective services to the customers
and enhance their experience. Along with this, the company can also be
able to adopt certain agile industrial methods (Marksandspencer.com,
2019).
Environmental The concerned company entirely focuses on building sustainable future
and also support wellbeing of the customers and communities. It is also
ensured that technologies used for the betterment of the operations, do
not hamper the environment.
Legal The legal aspects are also followed by the organisation. The
organisation ensures that the employees are treated well and thus, legal
requirements and right of the employees are also protected. This is done
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through maintaining the principles of legislations like employment act,
equal pay act, health and safety at workplace act 1974 and data
protection act 1998.
Table 2: PESTEL Analysis
(Source: Created by Author)
Micro Analysis of Marks and Spencer
Strengths
Innovations- Due to the technological aspects
of the country, Mark and Spencer is able to
trigger itself on digital platform.
Strong infrastructure and multichannel
presence- The strong e-commerce
infrastructure also helps the employees to
perform in a proper way and can enhance
customer experience. Political stability of the
country has also allowed the company to
expand on further platforms. Different outlets
and franchising options have made delivery of
products quite easier (Marksandspencer.com,
2019).
Weaknesses
Lack in market penetration- Marks and
Spencer is found to be much reliable on UK
market, this can make the company vulnerable
towards local market of other countries as
well.
Supply chain scalability- The company has
poor supply chain scalability; however,
through online access also the company is not
able to scale up their supply chain.
Opportunities
New segments- With the passage of time,
fashion is evolving and thus, the concerned
company is able to provide its customers with
“Made to fit and flatter”, and fulfil their
demands.
Threats
Competitors- Marks and Spencer has
competitors like Zara, Uniqlo, Tommy
Hilfiger and United Colors of Benetton. These
competitors can impose threat of substitution.
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Table 3: SWOT Analysis
(Source: Created by Author)
By conducting macro analysis, it can be observed that UK is a political stable country and thus,
is also popular destination for foreign direct investment (FDI). This lets various business
organisations to expand itself on this platform. This has provided stability to the company to
expand. Through micro analysis, Marks and Spencer is able to identify their issues and take
initiatives to mitigate them. To conduct micro analysis, the company takes up consumer insight
research, affiliated research or marketing SWOT analysis can be used. The above stated
PESTEL analysis is effective for macro analysis. This can help Marks and Spencer to plan
strategies for product and service development (Felix et al., 2017).
b) “Considering the micro environment of Marks and Spencer, Identify two key competitors
and discuss their potential threat to the business”
By conducting micro analysis, Marks and Spencer is able to identify its key competitors like
Next UK and Aldi UK. By implementing Porter’s Five Forces Analysis, the company is able to
identify its competitors and imposed threats. The respective analysis incorporates buyer and
supplier power, threat of new entry and substitution. This can help the management of the
organisation to conduct their operations. Among other factors, under laid two factors are of most
significant barriers to Marks and Spencer.
Threat of new entry
UK is politically stable and has a wide platform with mixed economy to support different
organisations and help it to expand. This can become an effective platform on which start-up
companies are also be able to put forth their products and services. Being a start-up, the
organisations would follow strategy of Market Penetration. The comparatively lower prices of
the similar goods and services might make the new organisation gain traffic of customers. This
might decrease the loyal customer base of Marks and Spencer (Corporate.marksandspencer.com,
2019).
Threat of substitution
Along with Marks and Spencer, there are other companies like Next UK and Aldi UK can
impose threat of substitution. The organisations that deal with similar products and services
along with cost-effectiveness can also impose great threat of substitution. For instance,
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technological embracement and advancements can also let the other companies deal in high
quality products.`
c) “Identify and explain two (2) internal environmental factors that could be considered as
strengths or weaknesses of Marks and Spencer’s business operations”
Internal environmental factors
Through conducting internal environment analysis, management of the organisation is able to
analyse their strengths and weakness and accordingly develop strategies for further improvement
of their business operations. Under laid are the two significant factors associated to internal
environmental analysis.
Organisation Resources
Within the organisation, managers and leaders of Marks and Spencer is inclined towards
empowering suppliers and manufacturers to manage efficient relationship with them. This can
help the organisation to acquire assistance for further development. This can be considered as
strength of the company as they have broad distribution channels (Armstrong et al., 2015). If the
above factors are not conducted in a proper way, this can change into weakness of the
organisation.
Capabilities
The employees of Marks and Spencer work in collaboration and take up initiatives to meet the
organisation. It is also necessary to organise proper training sessions for employees so that they
are able to cope with the proceedings of the business and provide proper attention towards the
business operations. Communication and collaboration is also the major concern of the
company. This factor can be considered as the strength of the company in terms of triggering
their sales and stimulate revenue generation.
Task 3: Marketing Mix
a) “Using the 4Ps of marketing, Identify and describe Marks and Spencer’s current marketing
mix providing detailed examples for each of the 4Ps discussed”
Marketing mix is beneficial for acquiring assistance for adopting effective and correct marketing
strategies for further development of the organisation. Below is the marketing mix of Marks and
Spencer:
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Marketing Mix
Elements Description
Product Marks and Spencer deals with eco-friendly goods and fair-trade
products. The diversified portfolio range of products includes different
ranges for men and women. The organisation believes in complying
with the current marketing trends of the country. There are different
range of products like home, beauty, food, furniture and wine. This
wide range of products provides the customers with various options to
choose products as per their preferences
(Corporate.marksandspencer.com, 2019). For example, as per the
insights of the customers, they prefer a dedicated range to fit and
flatter their curves”.
Place The concerned organisation operates itself in international market
platforms as well. It operated in places like Egypt, Spain, Qatar,
Finland, and Ireland. The company has also established itself overseas
in places like Sri Lanka, Italy, China, India or Bangladesh. The
products and services of Marks and Spencer have been successful in
gaining brand visibility and customer satisfaction
(Corporate.marksandspencer.com, 2019).
Price The respective company has its own in-house brand for fashionable
apparels and other products. The major target audience of the company
is the elite class people. The products are highly-valued due to
convenience, diversified range and high-quality products. The products
are of premium quality so the pricing of the products are from medium
to high range. This makes the company face lots of barriers due to its
competitors and result in increase in the threat of substitution. Marks
and Spencer has Dynamic Pricing Policy, the company offers
discounts, incentives on festive seasons to its customers. This can be
stated as the two way benefit for the organisation as well as the
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