Strategic Marketing: M&S Marketing Audit and STP Analysis Report

This report provides a comprehensive marketing analysis of Marks and Spencer, a UK-based retailer, focusing on its marketing strategies. It includes a detailed marketing audit conducted through PESTLE analysis and Porter's Five Forces model, examining the micro and macro environmental factors influencing the company. The report also features an STP (Segmentation, Targeting, and Positioning) analysis, segmenting the market demographically and geographically to understand customer needs and market positioning. Furthermore, the document justifies the marketing strategies chosen by Marks and Spencer, covering the marketing mix (7 Ps: Product, Price, Place, Promotion, Physical Evidence, People, and Process) with a detailed overview of their product strategy, pricing approach, distribution channels, and promotional activities. The analysis aims to provide insights into how Marks and Spencer maintains its market position and adapts to changing market dynamics.

Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Conduct Marketing audit of Marks and Spencer........................................................................3
Draw STP analysis of Marks and Spencer..................................................................................6
Justify the Marketing strategies chosen by Marks and Spencer.................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Marketing is referred to a set of activities that are undertaken by an organization in order
to promote the sales of goods and services of an organization. Marketing as a process includes
various activities like selling, advertising and delivery of the products to the customers of the
organization. The professionals working as a part of marketing and promotion department tends
to seek attention from the audience with the help of advertisements. Promotional activities tend
to target the audience with the help of celebrity endorsements, graphics, slogans and media
exposure. The marketing concept utilises the marketing mix which include 4 ps namely product,
place, price and promotion (Bala and Verma, 2018).
Marks and Spencer is a UK based retailer that is headquartered in London. The
organization deals in selling apparels, food products, home products, etc. under its brand name of
Marks and Spencer. The organization was founded by Michael marks and Thomas Spencer in the
year 1884 in Leeds. At present, Marks and Spencer has set up over 950 stores across the region
of United Kingdom out of which over 600 stores deal in selling of food products only. The report
basically revolves around the marketing strategies of Marks and Spencer (Berger and et.al.,
2020).
MAIN BODY
Conduct Marketing audit of Marks and Spencer.
Marketing Audit is referred to a process of examining the overall promotional
environment of the organization. The marketing audit consists of various analysis such as
PESTLE analysis, porter's five forces model, SWOT analysis etc. The marketing audit of Marks
and Spencer is performed with the help of various analysis described below.
The marketing audit of Marks and Spencer based upon the changes in aspect of micro
environment of the organization can be done with the help of competitor's analysis. There are
various micro environment factors that occur in aspect of Marks and Spencer's target market.
The competitor's analysis of Marks and Spencer is performed with the help of Porter's five forces
model (Dash, Kiefer and Paul, 2021).
 Bargaining power of the buyer- The businesses focus upon the needs and wants of the
customers and also make efforts in order to fulfil them. It has been noticed that the trends
in fashion have been quite dynamic and so are the customer demands. This requires
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Marks and Spencer to make changes in the product developed and the marketing
strategies of Marks and Spencer. The changes in the strategies need to be made in a way
that, Marks and Spencer aims to offer products and services as per the customer
orientation and change orientation. The bargaining power of buyers in aspect of Marks
and Spencer is quite moderate (Deepak and Jeyakumar, 2019).
 Bargaining power of the supplier- Supplier is referred to the individuals or the group of
individuals that offer the raw material for the organization. Suppliers are a very crucial
component of marketing strategy of Marks and Spencer. In case the suppliers fail to
supply or deliver the equipments or raw materials on time, it can lead to delay in delivery
of products. The delay will decline the reputation of Marks and Spencer in the market. It
is very important for the organization to maintain smooth communication and healthy
relationships with the supplier. Hence, the bargaining power of supplier is high in aspect
of Marks and Spencer.
 Threat of new entrants- The threat of new entrant is where an organization can enter
into the market and decline the market share of already existing organizations. In case of
Marks and Spencer, the threat of new entrant is quite low. The reason behind the lesser
risk from new entrants is that, the new entrant will have to be really creative or introduce
an overall new concept which is not possible to carry out. The establishment of an
international apparel chain requires a huge capital investment. The Marks and Spencer
already have loyal customer base and strong image in the market (Eckhardt and et.al.,
2019).
 Threat of new substitutes- The threat of substitute is referred to the risk that can be
caused to the business of an organization due to its substitutes in the market. The
products of Marks and Spencer can be replicated very easily and thus can act as substitute
of the organization. Thus it can be stated that Marks and Spencer has a huge threat of
substitutes in the market. It can be noted, that Tesco and ASDA provide cost friendly
alternatives to their customers which can attract the customers towards them .
 The level of competition- The level of competition is quite vulnerable for Marks and
Spencer as the organization deals in apparels as well as household products. The main
and crucial competitors of Marks and Spencer are Zara, ASDA, Next and John Lewis and
Topshop. While Marks and Spencer is consistently making efforts in order to establish a
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unique and distinguished image of the brand in the market. The aim of the organization is
to position itself in a way that it provides value for money to the customers (Fahy and
Jobber, 2019).
The market audit for Marks and Spencer in Macro aspect can be performed with the help
of PESTLE analysis. The PESTLE analysis in order to conduct market audit for Marks and
Spencer is described below.
 Political factors- It is very important for Marks and Spencer to abide all the regulations
that are introduced by the government . The organization needs to maintain all the health
and safety standards such as identification of the risk, assessment of the risk and
controlling the risk. In case Marks and Spencer fails to obligate, then the organization
will have to pay fines or may lead to closure of the business as well (Hanson and
Kalyanam, 2020).
 Economic factors- At present the economic factors of the UK market are not in favour
of Marks and Spencer. The economy of UK is not consistent and hence it is affecting the
retail sales as the customers are not capable of spending upon the luxury goods and
lifestyle in the market.
 Social factors- It is noted that the social perspective in context of fashion and luxury has
changed in the recent years. Marks and Spencer wishes to expand its brand and become a
multi channel retailer by selling their products through online channels. The act of
switching upon the online selling platform will have a major impact upon the marketing
strategy of Marks and Spencer. In order to compete with the cost effective apparel
industry, it is important for Marks and Spencer to make changes in its pricing strategies.
Further, Marks and Spencer is working upon to update their apparel designs in
accordance with the latest trends so that the organization can attract various customers
(Hole, Pawar and Bhaskar, 2018).
 Technological factors- The technological factors have a huge impact upon marketing
strategies of Marks and Spencer. The technological advancement helps the organization
to manage the product range that are being offered by the organization. The technology
will foster the organization to communicate its products in the market to the customers
as well as potential customers. The enhanced communication will help the organization
to attract more customers and retain them as well. The official website of Marks and
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Spencer along with the social media web pages can be considered appealing as well as
attractive.
 Legal factors- The legal factors comprise of various laws and legislations that are quite
dynamic in accordance with the economy, environment and the society. Marks and
Spencer updates and bring changes in their policies on an yearly basis. The organization
makes efforts in order to keep itself updated with the new laws and further reinforce
them by communicating with the employees and the managers (Jarek and Mazurek,
2019).
 Environmental factors- It is very important for the organisation to comply with the
environment related policies and fulfil them in order to develop and maintain the image
as a responsible and sustainable brand. Marks and Spencer has adopted the techniques of
sustainable production and sustainable development in terms of food, apparels and home
furnishing products. In order to have a sustainable production and distribution, the aim of
the organization is to reduce its carbon footprints as well as deforestation.
Draw STP analysis of Marks and Spencer.
The segmentation, targetting and positioning strategy is of huge significance in when it
comes to determining the organizational behavioural pattern. The strategy helps the organization
to understand the needs of the customers and develop a product accordingly so that the customer
receives ample satisfaction. The targetting and positioning of Marks and Spencer help in
analysing the present business scenario of the organization. Also, the STP strategy helps in
analysing the profits of the organization. Two sets of segmentation are performed in order to
analyse the growth of the organization based upon the segments (Jin, Muqaddam and Ryu,
2019).
Segmentation target and positioning – set 1
 Segmentation- The organization fragments the market in order to focus upon a particular
segment and further develop products that meet with the customer needs. The
segmentation discussed in the part is Demographic. Demographic segmentation of Marks
and Spencer divides the customers on the basis of age group, educational level and
gender.
 Target- The target market of Marks and Spencer on the basis of demographic segments
can be the people of all gender i.e. males, females of all the age groups who belong to
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upper middle class and rich section of the society. Marks and Spencer have immense
product to offer to its target market in form of apparels, food items, home décor, etc. Positioning- The segmentation of the market on the basis of Demographics will help the
organization to achieve the desired growth. The customers will be supplied with ample
resources in order to meet their individual demands.
Segmentation target and positioning – set 2
 Segmentation- The another segmentation that can be noticed in aspect of Marks and
Spencer is Geographical segmentation. The geographical segmentation divides the
market on the basis of country, state or region. Hence, the organization will focus upon
meeting the requirements of the people who belong to a specific geographical location.
 Target- The main focus of Marks and Spencer is upon the population of UK. Marks and
Spencer is a retail sector organization which has a widespread business across the globe
in more than 50 countries. The organization has 1000 stores globally out of which 950 are
located in United Kingdom solely.
 Positioning- The operations of Marks and Spencer will be highly benefited by the
geographical segmentation in the market. The organization has a well established market
in the UK that will help them in generating higher profits. Marks and Spencer is rapidly
expanding its business towards various locations of globe as well that include countries
like Finland, Spain, India, Turkey, etc.
Justify the Marketing strategies chosen by Marks and Spencer.
Marketing strategy of Marks and Spencer covers the marketing mix that includes 7 Ps
namely Product, price, place, Promotion, Physical evidence, people and Process. The reason
behind using 7 Ps by the organization is that marks and Spencer belong to the service sector
industry. The Marketing mix strategies of Marks and Spencer are discussed below-
 Product strategy of Marks and Spencer- The product strategy is referred to the strategy
wherein the products and the services are included in which the organization deals. Marks
and Spencer is a UK based retail chain and deals in various products. The organization
focuses upon the apparels of and products for men, women and kids of all the age groups.
The products include winter wears like cardigans, blazers along with shirt, jeans, skirt
and various more products for women. The organization deals in a wide variety of foot
wears as well. The footwear section includes boots, sandals, pumps, loafers, boots, shoes,
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etc. Similarly, Marks and spender deals in a wide variety of products for men as well.
The product strategies of Marks and Spencer include various accessories such as bags,
jewellery, shades, etc. along with various home and furniture accessories. The furniture
includes various products and accessories for living area, Dining area, etc. The
organization deals in various food products as well along with flowers and gift items. The
focus of the organization is to sell in house brands rather than the international brands
(Kayumovich And et.al., 2020).
 Pricing strategy of Marks and Spencer- The pricing strategies is referred to the prices
that are decided for a particular product. The pricing strategies are decided in accordance
with the organization policies. The pricing strategies adopted by Marks and Spencer is
competitive pricing strategy. The organization brand, Marks and Spencer offers various
products under the indigenous brand names. The price of the products of Marks and
Spencer is generally kept between medium and high. The reason behind high pricing is
that the organization aims to offer high quality products and have a unique image in the
market. The reason behind competitive pricing strategy of marks and Spencer is that the
individuals or the customers have a wide variety of substitutes to chosse from. Hence in
order to deal with the competitive market, it is important for the organization to keep the
price of the products in accordance with its competitors. The organization faces a tough
competition fro the offline retail stores as well as online retail stores. The organization
tends to offer dynamic pricing during some seasonal time wherein the organization offers
discounts upon their products in order to attract the customers and clear the old stock in
order to make space for the new products.
 Place or distributional strategy of Marks and Spencer- Marks and Spencer is
considered as an international brand as it has a wide market in approx 50 countries with
over 1000 stores across the world. The major market contribution of Marks and Spencer
is in UK where the organization has established over 850 stores in particularly UK. The
various other countries where Marks and Spencer has set up its stores are Turkey, India,
Spain, Finland, Ireland, Hungary, etc. The organization tends to focus upon delivering
goods to the customers with the help of online website platforms. The organization also
offers international delivery for certain products. The payment of online transactions for
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the products of Marks and Spencer is to be done in the local currency only (Kotler and
Kartajaya, 2017).
 Promotional strategy of Marks and Spencer- The promotional strategy refers to the
process of conveying the product and its information in the market to its various
stockholders. The organization can use various promotional tools and strategies in order
to communicate its products in the market and also the offers that are launched for a
limited period. The promotional strategies of Marks and Spencer are more focussed upon
the digital marinating strategy and in store strategy. The organization uses almost all the
communication tools to deliver its message in the market. Marks and Spencer uses
various advertisement mediums like print media, television advertisements, social media
campaigns along with the mobile advertisements. The organization also uses its websites
in order to promote its apparels which also highlights fashion tips and fashion blogs
(Mothersbaugh and et.al., 2020).
 People- Marks and Spencer incorporates a wide business of operating over 1000 stores
across the world. In order to operate these stores, the organization requires a huge
manpower as well. The strength of employees working at Marks and Spencer is over
83000. In order to retain its employees, the organization focuses upon a competitive
payment policy whereas the organization also pays concentrated attention to their
employees in order to monitor their works and efforts. The employees are rewarded with
various incentives apart from the basic pay in order to boost the performance of the
employees. The organization also offers various significant discounts to their employees
through online and offline mode of shopping. Marks and Spencer provides various
benefits to their employees in terms of health insurance, life insurance, etc. Marks and
Spencer aims to provide flexible working hours to their employees and also make
suitable efforts train their employees. The policies of Marks and Spencer focus upon
women empowerment and thus the organization has introduced policies in order to uplift
the female responsibilities and efforts at the organization (Schwartz and Woloshin, 2019).
 Physical evidence- The physical evidence for the existence of Marks and Spencer are its
stores and employees across the world. The organization has over 1000 stores and 83000
employees in more than 50 countries that prove the existence of Marks and Spencer.
Marks and Spencer has its online portals that are used y customers to buy the products
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and they are further delivered on the customer address. The products that are sold by the
Marks and Spencer stores can also be considered as a physical evidence of the
organization.
 Process- The stores of Marks and Spencer is established in various malls of sub urban
areas. The stores of Marks and Spencer are considered comparatively more organized
than the stores of lifestyle or pantaloons. The stores of Marks and Spencer have separate
sections for the apparels, gifts and home accessories. In most of the outlets, these are
differentiated through various floors. Usually the ground floor is for the home accessories
whereas the first floor consists of men, women and kids apparels. The second floor is for
the furniture and gifts whereas the third floor consists of various food products. The
customers are rewarded with points under the loyalty bonus programs (Kamps and
Schetter, 2018).
CONCLUSION
The conclusion can be made from the study that marketing is a crucial aspect of every
organization. Marketing as a process includes various activities like selling, advertising and
delivery of the products to the customers of the organization. The study focuses upon the
marketing strategies of Marks and Spencer. The report focuses upon various aspects of Marks
and Spencer wherein the market audit is also included in the report. The report proposes two sets
of marketing segmentation proposal and also highlights the marketing strategies adopted by the
organization.
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REFERENCES
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