Marks & Spencer: Market Entry Strategy Analysis for India

This report provides a comprehensive analysis of Marks & Spencer's (M&S) market entry strategy for the Indian market. It begins with an executive summary and introduction, outlining the task of analyzing the company's situation and marketing environment. The report conducts a situation analysis, highlighting M&S's strengths and weaknesses, followed by a detailed PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors influencing the Indian market. The report then applies the STP model (Segmentation, Targeting, and Positioning) to identify M&S's target audience and market positioning. Finally, it explores various market entry strategies, including franchising, distribution, and joint ventures, to recommend the most effective approach for M&S's expansion into India. The report concludes by summarizing the key findings and recommendations, emphasizing the importance of thorough market analysis and strategic planning for successful international expansion.

REPORT

Table of Contents
Executive summary .........................................................................................................................3
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Situation analysis....................................................................................................................4
Marketing environmental analysis.........................................................................................5
Market entry strategies ..........................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

Executive summary
This report will dicsuss the Marketing environmental analysis using the pestle analysis.
Also this report will discuss the strengths and weakness using the situational analysis. This report
will further discuss the market entry modes using STP model due to which the firm can easily
segment the market and position their product in an effective manner.

INTRODUCTION
In current scenario, there is a huge competition in the marketplace in which every
organisation makes strategies for getting sustainability and growth. For expanding the business
activities in a new marketplace, organisation have to make specific strategies so that they can
easily establish their business operations in that nation. In present report the chosen organisation
is KAE which engages in providing marketing consultancy services to the leading and
multinational firms and the another chosen organisation is M&S engaging in providing multiple
number of products through out the UK. The management of M&S wants to expand their
business in India with the help of taking support of KAE. This report will covers about the
company and marketing environment analysis along with the competitiveness of market and
target segmentation.
TASK
Situation analysis
Company analysis - In the current market situation, M&S has a good position in the
marketplace due to which the managers of firm have decided to launch traditional wears in the
Indian marketplace. The main objective behind the expansion is to achieve a global brand image
and increase the revenue for firm (Okurame, 2012). As the management of Marks and Spencer
wants to expand their business operations thus, they have to allocate resources of funds with the
help of it, they will easily move their business functions in the nation where they wants to
expand. The strength of weaknesses of company are given as under:
STRENGTH WEAKNESSES
 Company is a well known brand image
and have a high recognition in the
world which makes the growth and
sustainability of firm.
 Company has more than 80000
employees who are providing their
services in 30 nations which provides
strengthen to the firm.
 The company is less focusing on
market trends which reduces the brand
images of firm
 The turnover of the employees are
increasing in present times which
reduce the profitability of firm.

Marketing environmental analysis
At current market, M&S is a well known brand across the worldwide therefore, the
management of M&S wants to expand their business operations in Indian market with
introducing new traditional wears. As the demand of this kind of products are high therefore they
can easily get profitability and productivity in these market areas. Before expansion of business
operations, management of M&S have to analyse the market trends which will help them in
capturing huge market share in the Indian market (Carney, 2015). For analysing the market in
effective manner, management of M&S have to conduct a PESTLE analysis through which they
will identify the environmental factors of market that can impact on their business operations in
the new market areas. The PESTLE analysis of M&S are given as under:
Political – These factors are related with rules and regulations of government which are
made for providing guidelines to the business organisations for conducting their business
operations in ethical manner. India is the largest democratic nation across the world therefore the
nation have a developed taxation system which includes income, services and sales tax. Hence,
the managers of M&S have to consider such kind of factors which can affect them during their
expansion.
Opportunities
 Indian clothing market is rapidly growing at 14 percent CAGR which can provide
opportunity to M&S in their expansion.
 The worth of the retail sector was around 641 billion dollar in the year of 2016 and which
is expected to reach at 1576 billion dollar in the year of 2026. It is a favourable sign for
M&S for their expansion into Indian market.
Threat
 The competition and rivalry of the economy has reduces due to corruption of the
government authorities so that, company have to make suitable plans for it.
 The Political conditions are not stable therefore, management have to make proper
strategies for it.
Economical – This kind of elements are the part of economical performance of a nation
which can directly affects on the operations of firm (AU.Unsworth, 2013). These factor includes

– GDP rate, inflation rates of a nation which can affect the expansion of a company which wants
to establish their business in the nation.
Opportunities
 GDP worth of the nation is around 2.4 trillion dollar which makes India 7th largest
economy in the world. It is more beneficial for the firm in their expansion.
 Current corporate tax rate is 25% which can provide favourable sign to the firm in their
expansion towards Indian market.
Threat
 The growth rate of clothing sector is slow which can become a threat for M&S at the time
of their expansion.
 As the Indian market is very volatile therefore management have to make effective
pricing strategies for their offerings in order to sustaining in the marketplace.
Social – This type of factors are involving social environment of a marketplace which
includes market trends, taste and preferences of customers etc. that can affect the sales figure and
revenues of the firm (Muchiri, 2012).
Opportunities
 As India is the country of favourable therefore the demand of traditional wears are also
high therefore, M&S have to make suitable strategies so that, they can get competitive
advantage in the new marketplaces.
Threat
 Most of the customers of nation belongs to middle and lower economic level which can
become a threat for the prices of the offerings of M&S during their expansion.
Technological – This kind of factors pertain to the innovations in technologies which can
affect the activities of the business in positive and negative manner. This factor includes
advancement of technology which can use by the firm for their successful expansion.
Opportunities
 India is a growing economy in the world therefore most of the customers are aware from
the technological improvements in products which is a positive sign for the M&S during
their expansion.
Threat

 At the time of expansion, Tools and techniques requires a huge investment which can
negatively affect on the operations of M&S. Therefore, firm has to make suitable
strategies through which the expenses on such tools and techniques can be reduced.
Legal – these factors includes rules and regulations which are created by the nation in
order to maintain their code of conduct. M&S have to follow such kind of rules and regulations
so that, they can sustain in the Indian market for a long time period.
Opportunities
 The Large number of employment laws which can help them in making relations with
their employees. It will helpful for the firm in achieving competitive advantage in the
marketplace.
Threat
 Some rules and regulations such as state insurance act, 1948 maternity benefit act 1961
can affect their budget estimation of expansion so that, management of M&S have to
consider such kind of acts (Karsh, 2014).
Environmental – this factor includes all the determinants of surrounding environment
which can affect the operations of any firm in positive and negative manner. It includes natural
disaster, floods, environmental offsets etc.
Opportunities
 The Indian customers are likely to wear clothing products as per the weather which will
be a favourable condition for M&S as it helps them in introducing new products
according to the weather.
Threat
 Air and water pollution are the main parts of Indian environment therefore, M&S have to
consider such kind of factors which can affect their expansion.
STP model – Before expansion in the new market in an effective manner M&S have to
segment the market then target the customers then positioning their product in the marketplace.
The STP for M&S are given as under:
Segmentation – In this part, management have to analyse the needs and characteristics of
customers so that they can easily provide products to their targetted customers. In this part,
management have uses demographic part of segmentation for segmenting the market. It will help
them in identifying the needs and wants of the users so that they can provide products

accordingly. For example- company have decided to introduce traditional wear in the Indian
market therefore, they need to segment their target audience on gender or cultural basis
Targetting- The targetted customers of company belongs to middle and lower income
level group.
Positioning – M&S is a well known brand therefore, customers are aware from the
offerings of firm which will help them in maintaining their brand image and positioning.
Market entry strategies
In order to entering in Indian market in effective manner, company can use such kind of
strategies which are as under:
Franchising – Through this kind of strategy, M&S can increase the value of their brand.
In this, they have to provide licences to the investors for selling their products. With the help of
it, they will easily capture a huge market share in the Indian market (Emami, 2015).
Distribution- In this, Management have to follow some steps such as They have to
recognise the power of competitors, then managers have to make suitable channel partners. After
this, management have to prepare a proper structure and examine the whole process.
Joint venture – Under this, they have to make an agreement with the companies who are
a leading firm in the Indian market. In Indian market, M&S can make joint venture with the
Reliance retail which is a leading firm in retail industry. It will more beneficial for the firm in
understanding the new market and needs of the customers.
CONCLUSION
It has been concluded from the above report that company have to make various kind of
analysis such as company and market environmental before expansion in new marketplaces. As
it helps the firm in identifying the factors which can affect them in positive or negative manner
in their expansion. For expanding business operations in a suitable manner, company have to
make entry strategies which can supports them in selecting the proper channel in the new market.

REFERENCES
Books and journals
Karsh, B. T., Waterson, P. and Holden, R. J., 2014. Crossing levels in systems ergonomics: a
framework to support ‘macrosocio-economic. Applied ergonomics. 45(1). pp.45-54.
Muchiri, M. K., Cooksey, R. W. and Walumbwa, F. O., 2012. Transformational and social
processes of leadership as predictors of organisational outcomes. Leadership &
Organization Development Journal. 33(7). pp.662-683.
Robbins, S. and et. al., 2013. Organisational behaviour. Pearson Higher Education
AU.Unsworth, K. L., Dmitrieva, A. and Adriasola, E., 2013. Changing behaviour: Increasing the
effectiveness of workplace interventions in creating pro‐environmental behaviour
change. Journal of Organizational Behavior. 34(2). pp.211-229.
Bissell, G. and Dolan, P., 2012. Organisational behaviour for social work. Policy Press.
Carney, D. R., Cuddy, A. J. and Yap, A. J., 2015. Review and summary of research on the
embodied effects of expansive (vs. contractive) nonverbal displays. Psychological
Science. 26(5). pp.657-663.
Emami, M. and et. al., 2012. Antecedents and consequences of organisational citizenship
behaviour (OCB).
Okurame, D., 2012. Impact of career growth prospects and formal mentoring on organisational
citizenship behaviour. Leadership & Organization Development Journal. 33(1). pp.66-
85.