Marks and Spencer Marketing Strategies: A Comprehensive Analysis

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Introduction to Marketing
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Executive Summary
In the report provided below, there has been discussion on the different methods that are used in
promotion. Various channels have been used that would help in promotion of the commodities.
Discussion on the strategies of Marks and Spencer has been provided, and recommendations
have been made the company can incorporate. Marketing audit has been done to assess the
strategies that are used by the firm. The various advertising methods have been discussed that the
company can use in the promotion of the commodities. Different kinds of media mix have also
been introduced along with the elements of media plan.
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Table of Contents
Introduction......................................................................................................................................4
Task..................................................................................................................................................5
Conclusion.....................................................................................................................................18
Reference list.................................................................................................................................19
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Introduction
The focus of marketing is to provide satisfaction to the customers. The activity includes in
marketing as essential processes such as creation, communication, delivery, and exchanges of the
commodities that would have some value for the buyers, partners, clients, and community at
large (Blythe and Martin, 2019). Marks and Spencer Group is a public limited company that
falls in the retail industry. Thomas Spencer and Michael Marks have been collaborated to form
this organisation. This has been established in the year 1884 in London, UK
(marksandspencer.com, 2019). As recorded in 2019, it has 1463 locations all around the world.
Steve Rowe is the CEO and Archie Norman is the present chairperson. The annual revenue that
this firm has generated in 2019 is 10,377.3 million pounds (corporate.marksandspencer.com,
2019). There are 80, 787 employees working in this company as per the information generated in
2018 (corporate.marksandspencer.com, 2019).
In the report given below, there will be assessment of the company’s strategy and performance
that has helped it in reaching the present position. There would be application of some strategies
that can assist the firm in getting benefit through proper segmentation techniques of market.
Market audit will also be presented to evaluate the organisation’s capabilities.
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Task
Marketing Audit
It has been investigated that the product range in M&S is varied as it sells products to every
group, women, men, and kids. The products sold by the firm include apparels, footwear,
furniture, bags, beauty products, and such things. In the food range, it provides wine, starters,
main course, and others. There is also the collection of gifts and flowers that the company has
launched to enhance the range of commodities. The strategy of pricing that the business has
incorporated is as per the financial status of the people. There are both media as well as high
range products in the collection to meet the needs of the customers. The premium quality of the
commodities has increased its price range. The price range varies at some point of time such as
festive seasons and it provides goods at discounted rate as well as sells old stock at low price. It
also sells the products through online method. The promotion strategy used by this firm includes
website promotion, through media, campaigns, social media, and the provision of goods at
discounted range. It has been reviewed that M&S has also developed the marketing team
functions with the CRM and optimisation of search engine (Hammett, 2018).
Innovation in food products has been successful in the present year. Even the team of leaders has
been developed for the proper leadership tactics on the employees. The social media such as
Instagram can be used by the customers for shopping as per the progression plan of 2019
(corporate.marksandspencer.com, 2019). There has been inclusion of vegan food products
collection in the affordable range. It follows the principles of responsible marketing in the
marketing of food, clothing, and home appliances (corporate.marksandspencer.com, 2019).
It can be appraised that the online promotion method used by the organisation has enhanced the
visibility of the brand. The varied range of products produced by the form has made it one of the
favourite brands and the image of the company has been enhanced. The CRM incorporation has
helped it by enhancing the relationship with the customers (Shih, 2016). The responsible
marketing techniques have assisted it by avoiding any social or governmental issue. The
discounted strategy during festive seasons has helped it to sell number of commodities.
Introduction of vegan food has facilitated it by enhancing the perception of vegetarian
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consumers. The investment should be made both on the social as well as broadcast channels to
increase the visibility; thus, the sales of the commodities.
It can be examined that the company has gained more visibility of the products through
investment in the social channels and digital media (Glenday, 2018). However, the strategy has
failed it to achieve proper growth of the income as the sales of the food, home appliances, and
clothing products have been declined (Faull, 2019). This has been due to the improper
management of supply chain that has reduced the availability of the products. The discounted
offers from the competitors to the customers have also decreased the profit of this firm. The
pricing strategy has been made as per the targeted market that is the affluent people of the United
Kingdom. This can limit the sales of the company and the rival firms can gain advantage of it by
introducing affordable products for every standard people.
It can be analysed that the strategies of the company have affected it both in negative and
positive manner. They have made it earn more income through more number of sales through
promotional medium. The leadership used by the company has been efficient enough to lead the
people properly for the smooth functioning of every department and increase in productivity.
However, the company should produce commodities also for the common standard citizens to
have advantage over the rival firms.
3 M’s strategy
The M’s in marketing are resources that should be considered by M&S for making effective
strategies.
Men
These are the human resources and their experience as well as skills that are essential for the
performance of the tasks allocated to them. M&S provides rewards to the employees based on
the performance so that their engagement in work would increase
(corporate.marksandspencer.com, 2019). It can increase their skills by providing training (Sheth,
2017).
Machine
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Machines are the equipment that is used by the organisations for the marketing function (Ehret
and Wirtz, 2017). Marks and Spencer use the help of internet for the online sales of the
commodities. It also utilises the CRM software to manage the relationship with the customers.
The optimization tool is also incorporated to increase the visibility in the arch engine for
maximum viewers. M&S should incorporate the use of latest technology for securing the data as
well as can utilise it to manage supply chain.
Minutes
The time includes the deadlines of a particular work and the schedules that have been made for
conducting it. M&S should increase the productivity of the commodities and enhance the skills
of the personnel by giving those deadlines for the work allocated to them. It should maintain the
schedule of their work frothier capability’s development and deliverance of the commodities to
the customers in the proper time.
BCG matrix
The firm to analyse the status of the company’s commodities can use BCG matrix. The products
of the M&S can be classified as per the types of this matrix. The products in the company can be
put into the star element of the BCG Matrix. As per this strategy, the products of the firm can
grow at fast pace due to the help of latest technology in promotion (Mohajan, 2017). The
premium products need high investment; however; this fact would lead to increase in the profit
of the firm. It can be said that the organisation should place its products’ position as the star
element for the growth of the company as well as for increment in market share. The pros of this
matrix that it is easy to apply and help in getting know that position of the business portfolio.
However, this matrix does not incorporate the factors that can alter the position (Ansoff et al.,
2018).
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Figure 1: BCG Matrix for Marks and Spencer
(Source: Mohajan, 2017)
Ansoff’s matrix
This strategy can be used by M&S for expansion of the company or development of the
commodities. Among the four quadrants, it can be suggested that it can select product
development strategy for the improvement in commodities’ features. Through this strategy, the
products’ features can be modified fro increase in sales. As per this strategy, new products will
be provided to the customers in the existing market (Dawes, 2018). M&S should increase the
production of innovative product in the clothing range. It should make market research to
produce products as per the preference and requirements of the customers. M&S can incorporate
the use of latest designs, patterns, and quality textures for the manufacture of commodities. This
matrix will be helpful in focus on either development of commodities or market penetration
(Alon et al., 2016). However, this approach is helpful as a theory, but in the application of a
company, it can be affected by the external and internal factors.
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Figure 2: Ansoff's Matrix on M&S
(Source: Dawes, 2018)
Porter’s Five Forces
Porter’ forces can be applied to assess the behaviour of the buyers as well as to recommend
strategies to M&S for improvement in operations.
Threat of alternative products
The threat to alternative products to M&S is low. This is or the reason that the apparels and food
products cannot be replaced by anything else. It, however, should include affordable range of
products for enhancement of the buying decision of the customers.
Threat of new entrants
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The threat of new entrant to the corporation is low. M&S is an established organisation;
therefore, it does not need to fear from new entrants in the retail sector. However, it should
produce innovative commodities to lure the buyers into buying them.
Buyers’ bargaining power
The bargaining power of the buyers is high in M&S, as there are many companies available in
the UK that can provide them with quality products just like M&S. The firm to maintain the
customer’ base should provide them commodities at discounted rate. It should also produce
fashionable garments that are preferred by the customers these days.
Suppliers’ bargaining power
The suppliers’ bargaining power is low in M&S. This is because it has supplies of raw materials
as most of the products are manufactured in the company. Therefore, the power of suppliers is
low. M&S should manage the supply chain through technological equipment for management of
the chain.
Competitors’ rivalry
The rivalry is high in the retail sector. This can affect the M&S Company negatively. Some
firms, such as Asda, Tesco, and others provide customers with less priced products. The
company to be able to have strength over these should have a collection of affordable ranges and
promote them through campaigning in busy markets for boosting the sales.
The advantage of this model is that it helps in identifying detailed information concerning the
company (Carraher, 2018). However, it cannot be applied in the changed scenario of the market
of modern days.
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Figure 3: Five forces of Porter
(Source: Carraher, 2018)
Segmentation
Marks and Spencer can target the rich people as the products that are made in the company are
of premium quality. It can also target the young generation, for the sale of fashionable clothing.
Through this segmentation, the company can be able to increase the number of profit, as there
would be more sales of the products that are fashionable and of high quality.
Promotional Goals-
Performing
The goals of the promotion can be put into the practice through performing the promotion
through different mediums such as online, broadcast channels, print media, and others. The goal
of marketing in this stage should be informing the customers about the products that are
produced n M&S.
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Persuading
Another goal in the promotion of the commodities is to persuade the buyers into buying them.
Persuasive advertisement should be used along with the emphasis n the features f the
commodities.
Reminding
The customers need to be reminded of the products through advertisement in the most viewing
time of television and social media. The message of the key features of the commodities should
be highlighted and should create an impact in the mind of the people.
Promotional mix and advertising
The employees of the firm can carry out the promotional through personal selling or rather
direct marketing. It can also be done through advertising with the use of different media
channels (Ingram et al., 2015). Relations with the public should be enhanced through the help of
internet and other mediums. Marketing should be done to increase the awareness of the products
among the people. It would help in enhancing the image of the product that would increase the
number of sales by adopting Sales promotion strategy. Through advertising, their demand of the
consumers is met so the company should meet the requirements by providing them valuable
products.
Types of advertising-
Product
It can be done by targeting a specific market and inform the people about the special features of
the specific commodities that are most required and demanded by the people.
Institutional
This advertising technique can be used by M&S to enhance the image of the brand. It can inform
the people about the company’s incorporation of sustainable method in the functioning of
business.
National and local
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