NPD and Business Expansion: M&S Marketing Plan Report

This report presents a medium-term marketing plan for Marks & Spencer, focusing on the introduction of a new product—high-end beauty products—into the Australian market. It begins by establishing SMART international marketing objectives, emphasizing profit generation, cost diversification, and market position strengthening. The report then critically evaluates suitable entry modes, ultimately advocating for a wholly owned subsidiary model to ensure direct access to consumers and greater control. It identifies potential market segments, particularly beauty-conscious women aged 25-35, and discusses branding strategies for the new cross-cultural setting. Finally, it explores effective marketing mix decisions for the target customer market in Australia, concluding with a comprehensive overview of the proposed strategy.

Running head: NPD
New Product Introduction and Business Expansion
Name of the Student:
Name of the University:
Author Note:

1NPD
Table of Contents
1. Introduction:................................................................................................................................2
2. Presentation of SMART international marketing objectives for Australia (in relationship to
Ayush):............................................................................................................................................3
Sustainability:..............................................................................................................................3
Generation of profit and diversification of costs as well as losses:.............................................4
3. Identification and critical evaluation of suitable entry mode:.....................................................4
Direct export:...............................................................................................................................5
Licensing and franchising:...........................................................................................................5
The choicest model-wholly owned subsidiary:...........................................................................6
5. Overall branding of Ayush in Australia in cross cultural setting and positioning in new market
(Australia):.......................................................................................................................................8
6. Presentation, discussion and justification of the marketing mix decisions which would be
effective and efficient in target customer market in Australia:.......................................................9
7. Conclusion.................................................................................................................................11
References:....................................................................................................................................12

2NPD
1. Introduction:
Multinational companies have to review and restructure their marketing plans in order to
ensure increasing in profit generation. The discussion can be initiated by drawing from the work
of Manser Payne, Peltier and Barger (2017) titled, ‘Omni-channel marketing, integrated
marketing communications and consumer engagement: A research agenda.’ The authors
mention that marketing enables the multinational companies to generate high profits. Bamiatzi et
al. (2016) opine in this respect that in order to ensure that their marketing strategies are
profitable, the firms concerned have to ensure that their marketing strategies are aligned with the
prevailing macroeconomic conditions. The aim of the report would be formation of a medium
term marketing plan for Marks & Spencer, which is premium lifestyle retail and financial
services retailing company based in London, the United Kingdom. The report would revolve
marketing of the high-end lifestyle product retailing company (Marksandspencer.com. 2019).
The marketing plan would revolve around introducing a new product into an existing market
using an appropriate mode of entry. Marks and Spencer would seek to achieve several objectives
through the medium term marketing plan. The first objective which the premium lifestyle outlet
would aim to achieve would maximization of profits. The second objective which the global
premium lifestyle company would seek to achieve would be strengthening its market position in
France in high end beauty segment with brands like Harvard under its possession. The company
would seek to introduce its high end beauty products in the French market. The third objective
which M&S aims to achieve would be diversification of the costs it would have to have to incur
in order to restructure its marketing operations in the country and introduce high-end beauty
products in the country.

3NPD
2. Presentation of SMART international marketing objectives for Australia (in relationship
to Ayush):
It can be pointed which M&S wants to achieve by introducing its beauty products in
France are measurable on the SMART scale which stands for specific, measurable, achievable,
realistic and time bound. The following are the main SMART objectives M&S wants to
achieve by introducing the beauty product segment in France are as follows:
Generation of profit and diversification of costs as well as losses:
The first and the third objectives which M&S wants to achieve by entering France with
its beauty product segment are generation of profits and diversification of costs and losses. The
multinational high-end premium lifestyle company should market its beauty segment in France
in order to attract large base of upper and upper-middle class customers in France. This would
enable to generate high revenue which would provide the base to diversify the costs it would be
incur in to introduce and market product segment in the market. The high revenue generation
would enable the company to diversify the initial loss which it may encounter in France
(Alhassan 2015). As far as the objectives are concerned, it can be pointed out that they qualify
the SMART objectives. First of all, the objective of achieving high profits and diversification of
costs as well as losses are specific. Secondly, it can be pointed out that the company can measure
the profit generated and the costs incurred in terms of currency which means that the objectives
are highly measurable. Thirdly, the company can aim to achieve the target profits and minimize
the costs within a predetermined time span like a year. Thus, the objectives are achievable,
realistic and time bound.

4NPD
Strengthening market position in France in terms of the newly beauty segment:
The second objective which Marks and Spencer should aim to achieve in France is
strengthening of market position in terms of the beauty segment. Najafi-Tavani, Sharifi and
Najafi-Tavani (2016) opine that business should strengthen their market positions by introducing
new products or product segments. It can be pointed out that Marks & Spencer should aim to
boost its market position in France. However, it must be pointed out that France itself is an
extremely competitive beauty market. The country is already home to leaders in the beauty
market like L’Oreal which is largest cosmetic company in the world (Kestenbaum 2018). The
Forbes in an article released in 2019 mentions that L’Oreal holds a market capitalization of $153
billion and is one of the largest public limited companies in the world. The company as on May
15, 2019 achieved a sale of $ 31.8 bn (Forbes.com 2019). These facts that level of
competitiveness which M&S would face in France in order to establish its beauty segment
strongly. It is clear that the company would have to incur high expenditure in order to market its
products in the market to cement its position.

5NPD
Figure 1. Table showing facts about L'Oreal
(Source: Forbes.com 2019)
As far as SMART elements are concerned, the objective of M&S of establishing its
beauty segment in France qualifies all the criteria. First of all, the objective which M&S wants to
achieve is to establish its beauty segment in France strongly by competing against the resident
players like Sephora. Thus, the objective which M&S wants to achieve id extremely specific. It
can also be pointed out that the objective qualifies the measurable criterion as well. The company
can measure the increase in the profit generated from the sale of beauty products. The objective
is achievable since the company can strengthen its market position. The objective is realistic
since M&S itself is a global company with an immense financial strength and customer base.
Thus, it would be feasible for M&S to compete with leading global beauty companies based in

6NPD
France like L’Oreal. The company can aim to expand its hold over the French premium beauty
market by measuring its profit generated. This means that the objective is time bound. This
means that the second objective of M&S is compatible in terms SMART criteria.
3. Identification and critical evaluation of suitable entry mode:
The following are the main entry modes which M&S can use to introduce beauty product
segments in the fiercely competitive of France:
Direct export:
M&S can introduce its beauty segment products using the direct export modes of entry.
The export mode of entry would mean that the company would be exporting beauty segment
products into third party firms to the French market. The first advantage which M&S would
enjoy by using direct export would be minimum cost of operations compared to other entry
modes like subsidiary and franchisor ship. The company would be exporting the beauty segment
products by entering into export and distribution contract with an existing distribution company.
However, it can be also be pointed out that entering French market using direct export format
would put several restrictions upon M&S which would damage its long terms business growth.
Firstly, the company would have to no direct access to the consumers of premium beauty
segment products. This lack of direct access would inhibit the company from gaining in depth
information regarding changing preferences of consumers (Narayanan 2015). The firms which
M&S would entrust with the rights to sell its beauty products may sell French beauty brands
instead of selling products belonging to the former. M&S would not be able to take direct action
against these concerned channel partners and would loose revenue in the long run. This would
inhibit the management of M&S from making appropriate business strategies pertaining to the
market expansion of premium beauty products (Eaton et al. 2016). The company owing to direct

7NPD
access to the consumers would be face inhibitions in terms of product innovation (Hohenthal,
Johanson and Johanson 2015). Thus, it is evident that that though direct export format is less
expensive, it is less profitable as well.
Licensing and franchising:
The second method which M&S can adopt to introduce beauty in French market would
be licensing and franchising. The company following this model would enter into a contract with
a French firm to manufacture and market high end beauty products. The first advantage which
M&S would be able to achieve in this case would be minimum operational costs (Lee et al.
2015). The second advantage which M&S would be able to enjoy by marketing high end beauty
products in the franchisee model would be more access to consumers compared to the export
model (Gerhardt et al. 2015). However, the company in order to manufacture and sell its high
end beauty products would be dependent on the third party manufacturer which means that the
company would have low amount of direct control on the marketing of the product. Alon,
Madanoglu and Shoham (2017) point on that in case of franchisee model, M&S would be
dependent on the third part firms to market its products. Thus, M&S in this case would have no
direct command over the marketing of its beauty products in the French market and consequent
profits. It is very clear from the analysis that M&S would incur losses by adopting franchisee
model to market its high-end beauty segment.
The choicest model-wholly owned subsidiary:
The most appropriate model which M&S can use to introduce high end beauty segment in
France would be through its own wholly owned subsidiary model. The company should place
high-end beauty segments under stewardship of its French arm. The management of M&S may
create a new department which would steer the market establish and expansion of the high end

8NPD
beauty segments. This would strengthen the product line of M&S offers in France at present.
Moreover, the company would direct access to the consumers which would enable the company
to gain information from consumers regarding expectations from the high-end beauty segment,
which is a new product segment in the market. Thus, the company would be able to introduce
variants of high-end beauty segment range of products more aligned with the market conditions
in France. Thus, this would enable the company satisfy the needs of the French consumers more
appropriately. Thus would M&S to generate high profits. In fact, M&S would be able to
introduce high-end beauty segment in other markets to achieve sustainability and expansion in its
product line. However, it can be pointed out that the business model of wholly owned subsidiary
is extremely expensive (Meyer and Su 2015).
4. Identification and discussion of potential segmentation and target market segment of
Marks and Spencer’s beauty product
Marks and Spencer’s premium beauty products can appeal to the growing number of
beauty conscious customers in France. The company is focused on marketing premium range
beauty products in the country with significant amount of product variety. The product would
target both men and women of France who are becoming increasingly conscious of the toxic
chemicals that are used in some of the conventional beauty products that are available currently
in the market. The basic value that the product would focus on creating for the customers a
toxicity free product.
One of the most important market segmentations would be the women between the ages
of 25 and 35. This group is very concerned about their health, beauty and appearance. Their
psychology is to create a strong and effective appearance for themselves. They seek social
appreciation and want to feel confident in their everyday lives. They associate much value with

9NPD
skincare, hair care and body care. This group is focused towards developing an effective value
for their appearances (Amvrosiou, Theodoropoulou and Mitoula 2017). However, at the same
time they are well aware of the various chemicals that are used in the making of many of the
conventional beauty products. These people are against using toxic chemicals for their beauty
care. Hence, they would need the product that would have healthier non-toxic ingredients. This
group is young and have more safety demands from the products that they tend to use. This is
potentially the largest customer base that can be targeted by the products. They need products
that are free from any form of plastic or chemicals.
Another essential customer segmentation that can be considered is the older men and
women over the age of 35. This segment is focused toward providing their customers with
naturally enhance spa services. The focus of this group is to create a good impression for
themselves by having premium beauty products. This group is ageing and both men and women
of this group use beauty products to feel more confident of their looks (Fouilleux and Loconto
2017).
Another customer segment that is important is role to be played by the more aware
young mothers. They want to beautify themselves and are very conscious of the various products
that are available in the market (Faria and Jones 2018).
It is necessary to consider that all the segments that are considered are more inclined
towards the usage of plastic free healthier products. These people across France would form the
potential primary consumer base for the company and its products. The organization would
benefit greatly from the consideration of these specific customer segmentations. The
organization would benefit more from targeting the increasing number of both health conscious
and ecologically conscious youth of France (Johe and Bhullar 2016).

10NPD
5. Overall branding of M & S beauty products in France in cross cultural setting and
positioning in new market (France):
The branding process in France would need to take into consideration what the company
would like to present to the people of France and continental Western Europe. The beauty
product market of France is now estimated to be grow by 7.1% till 2024 (Statista 2019). Though
most of the development has been noticed in case of organic food. The organic market of the
other products have also been benefitted due to this. The current beauty market is worth around
1.4 billion/year. This needs to be considered essentially before marketing the products. There is
also a 1.2% year on year growth of the beauty market of France currently.
Cross cultural branding would be important as France has diverse cultural societies.
There is a large North African and East Asian diaspora in France. At the same time there are the
traditional local cultures that can be considered for the branding process. For example- France
has always had a culture that had values beauty, fashion and appearance. The country is also one
of the fashion hubs of the world with designer and trends. The branding strategy that can be used
by the organization need to take into consideration all these aspects to create a strong branding
process. The branding can also effectively attract the Asian populations to the product. In this
sense they need to attract the people towards the wider and healthier skincare and body care
possibilities that can be reached through the usage of herbal products. The branding process
should also take into consideration that the usage of toxic products for the manufacture of many
of the conventional substitute products can actually cause more harm to the users. The users of
body care products are well aware of the threat to their bodies from the unwanted chemicals that
are used to make some of the products.

11NPD
Here it is also important to understand that the company would benefit more from
emphasizing on the very natural ingredients that are used to make the product. The most
important part of the branding process becomes actually promoting what the product is and what
it is supposed to provide to the customers. M & S beauty products are much less likelier to harm
human body in any way than the chemically enhanced products. It is important that the branding
process takes into consideration the health effectiveness of the entirely of the products that are to
be released in the market.
6. Presentation, discussion and justification of the marketing mix decisions which would be
effective and efficient in target customer market in France:
The marketing mix includes the product, price, promotion and place. Thus, it is important
that Marks and Spencers is optimized considering all these important aspects. These decisions
need to be taken considering the above mentioned factors that have emerged from the study.
Firstly, the marketing mix that is to be used is the product. In this case the product would
be the optimized product offerings. The product as discussed would be a range of organically
enhanced body and skin care products. The ingredients would be effective in determining the
value of the product. The product is justified for being healthier as a substitute of the
conventional beauty care products.
Secondly, the price would be kept only slightly higher than the normally available beauty
and body care products. The ingredients are herbal and not easy to procure. However, the price
being only slightly higher than the potentially more harmful artificial body care products is
enough for the customers to be interested in buying the product. The customer can get more