Analyzing Marketing Strategy: Marks & Spencer Segmentation

This report provides an overview of Marks and Spencer's marketing strategy, focusing on segmentation, targeting, differentiation, and positioning. It begins with a background of the company, highlighting its establishment and core values. The analysis covers how Marks and Spencer segments its market using demographics, psychographics, geographic location, and consumer behavior. The report also examines the company's targeting strategy, primarily focusing on the UK market and increasing the number of 'simply food stores' to meet local customer needs. Furthermore, it discusses the differentiation strategies employed by Marks and Spencer, emphasizing product quality and skilled staff. Finally, the report explores the positioning of Marks and Spencer as a premium brand in the supermarket industry, offering high-quality products at premium prices. Desklib provides students with access to past papers and solved assignments.

Running head: MARKETING STRATEGY
Marks and Spencer
Marketing Strategy and lanP
8/2/2018

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Table of Contents
Introduction................................................................................................................................2
Background of Marks and Spencer........................................................................................2
Marketing Strategy.................................................................................................................2
Segmentation......................................................................................................................2
Targeting............................................................................................................................3
Differentiation....................................................................................................................4
Positioning..........................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
A business can never give maximum focus on its consumers. The consumer is the foundation of the
success of any business organization. The key objective of the marketing strategy must be to
recognize and fulfil the customer's need (Hose, 2018). In order to meet the requirements of the
customers, business has to target its anticipated segment, distinguish it from the rivals, and then place
the brand in the eyes of its customer or target segment. To understand this report will discuss the
current targeting, positioning, segmentation, and differentiation strategies adopted by Marks and
Spencer.
Background of Marks and Spencer
Marks and Spencer is the British multinational retailer with headquarter in London. The business is
registered on the stock exchange of London. Thomas Spencer and Michael Marks established it in
1884. Marks and Spencer provide quality fashion, stylish homeware, and award-winning food. It
possesses 1463 stores in 57 countries; today they are counted in the list of leading retailers of UK
(M&S Corporate Gifts, 2018). They have a good understanding of integrity, innovation, and
inspiration and follow these values in all their activities. Through regular innovation, they create their
products and tailor the experience of shopping in order to delight their consumers across the world
(Marks & Spencer, 2018).
Marketing Strategy
A marketing strategy is a complete game plan of the business created for reaching people and
converting them into consumers of the service or product that is provided by the business. The
company's marketing strategy involves the value proposition, details of the target market, messages of
marketing, and many other details of the company. The marketing strategy is comprised of the
segmentation of the desired market, targeting the desired consumer base and positioning the business
in the market for long-term profits. These strategies report to the marketing plan of the company,
which is a document that arranges the timing and types of activities of marketing.
The marketing strategies i.e. segmentation, targeting, and positioning are explained below to provide
an overview of the Marks and Spencer’s target market, and position in the industry.
Segmentation
Segmentation is the process of dividing the market into different segments or parts, which are
definable, reachable, money making and actionable, and possess a growth potential. Additionally, a

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business will find it difficult to aim the whole market due to cost, effort, and time restrictions. It
should have a segment that can be defined - a group of people that can be recognized and targeted
with rational cost, time, and effort (Wedel & Kamakura, 2012).
Importance of Segmentation
Understanding customers- In the starting of the design thinking procedure, the team of designing
has to research to understand the needs of their audience and consequently form a persona that
signifies the target market. The concept of market segmentation supports the team of designing to
define the scope of research and subsequently create a product that fulfills the expectations and
demand of the consumer (McDonald, 2012).
Marks and Spencer- Segmentation
Marks and Spencer define the market and target with the tactic of diverse principles like the clothing
line supports in exploring the marketplace in an appropriate manner with the support of geographic
and demographic along with the psychographic profile.
Demographics- In clothing, the company M&S targets women, and it have satisfied the whole
segment of the market of every age group. Generally, the business targets the women above the age of
20 years. Teenage girls also search for the colorful clothing, because they are very much conscious
about their styles. Their preferences and taste have altered because media and role models have been
playing an important part in altering their demand and needs according to the modern world.
Psychographic- The personalities and social class are similar but there are differences in the
lifestyles. The consumer's purchasing behavior could be understood by the transaction and it majorly
supports the marketers to offer improved products for a targeted market.
Geographic- The key geographic segment comprises 337 stores in 41 regions globally. It divides the
market geographically like establishing different stores in regions and follows the method of regular
packaging, which makes shopping easy for consumers (Dibb & Simkin, 2007).
Behavioral - Marks and Spencer’s premium consumers are its fixed consumers. Consumers come
back for shopping to M&S because they are happy with the business offerings. Fix or regular
consumers are very essential for a business to be profitable because they buy more products and have
good purchasing power. Loyal consumers of M&S support in increasing its sales.
Targeting
The targeting strategy helps in segmenting the marketplace, selecting the appropriate segment of the
market, and defining the products that will be provided in every segment. A business providing

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numerous products can define whether different market segment should get one general product (for
example, in mass marketing), or every segment should get a modified product (such as multi-
segment), depending on the diversity of the market, competition level, and expected sales volume
(Monash University, 2018).
Importance of Targeting
Role in building brand loyalty- Advertising resources can be focused on the target audience, while
the message of advertising is planned precisely to resonate with the customer in that target group.
Boost Competitive Strength- By concentrating on a target audience, the business can represent itself
as a professional on the needs and wants of that target group.
Marks and Spencer- Targeting
Marks and Spencer majorly targets the market of United Kingdom. In the United Kingdom, the
company targeted to serve 95% of the population within 30 minutes. The business has increased the
number of “simply food stores” in the UK in order to meet the needs of the customers in the domestic
area (Hobbs, 2016).
Differentiation
Differentiation strategy means establishing business, service, or product apart. It helps in
differentiating one brand from its competitors. The differentiation strategy is said to be a combined set
of activities intended to make or deliver services or goods that consumers notice as being diverse in
ways that are significant to them (Williams & Williams, 2017).
Importance of Differentiation
Customer Value- Customers today are well informed and look for maximizing their value from the
services and goods that they purchase. The modern customers are aware of the product that they
purchase and alternatives that are available in the market at a cheaper price or higher quality. As an
effect, businesses have to respond proactively. It should be understood that a service or product on par
or subpar to its rivals might not stand a chance of a recurrence buying. Hence, it is important to
distinguish the product or service to stand separately from alternatives and provide consumers value
for the money they paid (Singh, 2016).
Marks and Spencer- Differentiation
Marks and Spencer offer a different type of products in the market. In terms of quality, the products of
Marks and Spencer are premium as compared to its rivals in the market such as Asda and Tesco. The

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company majorly concentrate on the product's quality to get a higher price on the products than its
competitors. As it is known that the products of M&S are unique, they only sell their own products
that have helped them in gaining the trust of consumers for many years. Their offerings are diverse
from its competitors. Moreover, the staffs of the company are skilled and give the best services to the
customers, which is another unique point that makes Marks and Spencer different from its
competitors.
Positioning
Positioning means the place that is occupied by a brand or business in the eyes of the consumer and
how it is differentiated from the competitor's product. To place brand or product, a business can focus
on the distinguishing features of the product. Once a product or brand has attained a good place or
position in the market, it is very difficult to relocate or reposition it. Positioning is a powerful concept
of marketing (Maiwald, 2013).
Importance of Positioning
It places the brand or product apart from the rivals- Positioning of the brand allows business to
stake out an exclusive zone for the business practices in which not a single competitor will try to
introduce their venture because they will be considered as the "me-too" business, and will be walking
on the footsteps of the company (Frederiksen, 2017).
Marks and Spencer- Positioning
M&S has placed itself as a superior or premium brand in the industry of supermarket. It provides
premium price products to the consumers because they are ready to pay such prices for this type of
brand and quality product. Marks and Spencer set the prices of their products with the approach of
premium brand perception in the eyes of the consumer (Blankson, 2004).

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Source [https://www.slideshare.net/sarthak8/direct-marketing-plan-for-marks-spencers]
Conclusion
Marks and Spencer is one of the top retailers of the UK, which have effectively covered the broader
market. It is the much-known company, which is introduced in the market to flourish the service. The
offerings of the company are expensive but also upholding the place among the top 10 retailers in the
UK. The company has successfully targeted the market segment of women of above the age of 20
years with differentiated products, which are better as compared to its competitors.

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References
Blankson, C. (2004). Positioning strategies and incidence of congruence of two UK store card brands.
Journal of Product and Brand Management, 13(5), 315-328.
Dibb, S., & Simkin, L. (2007). Targeting, Segments and Positioning. Retrieved from
https://pdfs.semanticscholar.org/6899/a3f6934da8b6468ad9a30137448fe6de8c4d.pdf
Frederiksen, L. (2017). Why Brand Positioning is Important for Your Firm. Retrieved From
https://www.accountingweb.com/practice/practice-excellence/why-brand-positioning-is-
important-for-your-firm
Hobbs, T. (2016). M&S targets attitude not age to rebuild fashion business. Retrieved from
https://www.marketingweek.com/2016/11/04/ms-dismisses-segmentation-saying-fashion-
attitudes-are-ageless/
Hose, C. (2018). Customer Importance in Marketing. Retrieved from
https://smallbusiness.chron.com/customer-importance-marketing-22741.html
M&S Corporate Gifts. (2018). Why use m&s for business? Retrieved from
http://marksandspencerforbusiness.com/why-use-ms-for-business/about-ms/
Maiwald, G. (2013). The influence of culture on brand positioning strategy 1st ed. Germany: GRIN
Verlag.
Marks & Spencer. (2018). About M&S. Retrieved from http://global.marksandspencer.com/about-ms/
McDonald, M. (2012). Market Segmentation: How to Do It and How to Profit from It 3rd ed. U.S:
John Wiley & Sons.
Monash University. (2018). Targeting Strategy. Retrieved from
https://www.monash.edu/business/marketing/marketing-dictionary/t/targeting-strategy
Singh, R. (2016). The importance of product differentiation to the modern entrepreneur. Retrieved
from https://www.entrepreneurlifett.com/single-post/2016/05/29/The-importance-of-product-
differentiation-to-the-modern-entrepreneur-1
Wedel, M., & Kamakura, W.A. (2012). Market Segmentation: Conceptual and Methodological
Foundations 2nd ed. Germany: Springer Science & Business Media.

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Williams, R.L., & Williams, H.A. (2017). Vintage Marketing Differentiation: The Origins of
Marketing and Branding Strategies 1st ed. Germany: Springer.