Assessment 2: Marketing Plan Evaluation for M&S Food Sector Expansion

This report provides a comprehensive analysis of the marketing plan for Marks & Spencer (M&S), focusing on its expansion into the food sector within the UK retail industry. It begins with an introduction to the importance of marketing in business, particularly for achieving sustainable growth and competitive advantage. The main body of the report evaluates the macro environment using PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors influencing M&S's marketing planning. The report then explores the implications of using the SOSTAC model to create a marketing plan, including situation analysis, objectives, strategy, tactics, and control. Finally, the report details the development of the marketing mix (product, price, place, and promotion) for M&S's new food products, along with a marketing budget. The report concludes by summarizing the key findings and recommendations for M&S to enhance its marketing performance in the food sector.

Assessment 2

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Evaluate the macro environment and its impact on marketing planning....................................1
Implication of marketing planning tool to create marketing plan ..............................................4
Development of marketing mix ................................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The concept of marketing is one of the essential business function in every organisation
as it help them to enlarge its sales performance and also to manage sales volume of company
within an industry in a better manner. However, the aspect of marketing refer as to the process of
building long term relationship and satisfying customers by delivering required product or
services in an best quality (Atwal and Williams, 2017). However, for attaining sustainable
growth or development among competitor, implementing better decision in regard of coping up
all sort of challenges inside existing business environment help establishment to accomplish its
goal in an expeditious way. In regard of this project, Mark and Spencer has been considered
which is one of the well established and reputed firm within UK retail industry. Hence, company
has been taken an initiative to expand its market division into food sector with an intent of
acquiring best positing among rivalries in an efficacious manner. However, this study present the
content regarding critical evaluation of macro environment and its impact on marketing
planning, application of suitable marketing planning tool. Finally, developing marketing mix for
company to enhance the productivity ratio in a prescribed time limit.
MAIN BODY
Evaluate the macro environment and its impact on marketing planning
The present scenario of UK e commerce sector is becoming highly competitive and
challenging like physical retailers in terms of adopting technologies, implementing marketing
strategies, producing products or services and many more, Due to which, it directly influence the
organisation potentiality in enriching the profit margin ratio in an trenchant way. However,
PESTLE analysis is one of the strategic management approach which enable organisation to
determine its external factors and also lead them to take corrective course of action for achieving
the sales target in a stipulated time limit (Babin and Zikmund, 2015). However, M&S make an
initiative to apply PESTLE analysis into its functional unit for understanding and analysing
various external factor that threat organisation to obtain profit maximisation. The explanation of
this are discussed below:
Political: Under this factor, it is concern with government policies, procedures,
regulation and etc. that impact over firm's overall performance. However, the political factor
which UK e-commerce industry undergoes is that the introduction of Brexit as it impose huge
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difficulty in managing export / import trade, acquiring raw materials, maintaining supple chain
and so on. Due to which, it negatively effect over their capability in achieving increased level of
proficiency ratio among rivalries. Another challenge which e-commerce sector face is political
stability of each geographical boundaries as it is directly link with its sales volume. However,
adopting suitable modification or alteration in organisation existing internal policy like no-deal
Brexit, in which placing inventory in warehouses outside of country in order to fulfil the EU
orders in an efficient mode. Due to which, e- commerce division can explore its sales
performance in an impressive style without any obstacles.
Economical: Under this determinant, it involves economic growth, inflation/deflation
rate, interest ratio, GDP and etc. which impact company's decision making in terms of handling
revenue and profit. However, UK e-commerce sector undergoes with a threat of recession period
which took place few period ago as it negatively influenced each consumer spending behaviour.
Hence, in order to cope up with such difficultly, UK e-commerce business make an attempt to
reduce the price of its product that enable them to attract the attention of large number of
population towards the brand which benefited them to bring their revenue ratio in a right track
effectively (Baltes, 2015).
Social: This component is concerned with customer taste or preference, demographic
factor like age, gender, population income and many more. IN context if UK e-commerce, the
changing trend of UK population towards mobile technology or gadgets for carrying out the slaes
activity which greatly influenced business in terms of retaining the customer for longer time
duration. Hence, e-commerce business adopted various innovative technology and automation
that assist them to gain competitive advantage among competitor as well as aid them to increase
customer base in an innovative style
Technological: This factor comprises latest or innovative technologies, digital techniques
which affect establishment sales volume inside marketplace. In regard of UK e-commerce
industry, majority of population were in demand of innovative techniques like online shopping,
home delivery and etc. which impacted organisation in negative mode. Henceforth, e-commerce
business developed various website application and also offered variates of online services that
help them to capture the interest of customer towards brand in an improved manner (Dwivedi,
Kapoor and Chen, 2015).
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Legal: Under this, government legislation, rules, policies has greater role over
establishment proficiency ratio. However, like physical retailer, e- commerce also contain their
own legal requirements in aspect of governing and monitoring entire functional unit. Hence,
adhering all legal requirements, policies, rules enable e-commerce to reduce the interference of
government inside business function. With the help of such initiation, it lead them to place an
aggressive or competent position among rivalries.
Environmental: In this, it includes eco- friendly products, measures related to protect
environment from pollution and etc. for attaining sustainable growth and development. However,
e-commerce sector make an effort to introduced product related to eco- friendly product as well
as arranged various camps with an aim of creating awarenesses among population in regard of
preventing ecological balance in a better way. Due to which, it empower establishment to
improve its sales revenue and profit margin ratio in an amended way (Erevelles, Fukawa and
Swayne, 2016).
Impact of macro environment on marketing planning
The industry where M&S operate its business function contains increased degree of
opposition which impact establishment decision making process in order to enrich its
proficiency ratio in a prescribed time limit. However, some of the macro factors that challenge
M&S to survive within marketplace are customer, government, suppliers, competitors and many
more. Therefore, proper allocation of available resources aid M&S to place its brand in an
aggressive position and also can gain competitive advantage in an prompt way. In perspective of
political factor, M&S take an initiative to make all sort of required modification for its new
division i.e. food sector inside its functional unit which enable them to obtain positive response
from targeted audience in better mode (Felix, Rauschnabel and Hinsch, 2017). Moreover,
company also identify the demand or need of consumer and based on that produce product or
services by considering price, quality in order to improve customer base efficiently.
Additionally, in context of social factor, M&S implement several innovative techniques that
assist them to reach larger number of population across the globe that enhance market share or
size in an amended mode. Furthermore, M&S adopt environmental measures that help them to
obtain profit maximisation and also motive them to enrich sales volume rate.
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Implication of marketing planning tool to create marketing plan
In relation to M&S, they make an initiative to apply SOSTAC model which help them to
determine all business requirements as well as motive them to implement best strategic decision
in order to cope up with all emerging or current market competition in an amended manner.
Hence, on the basis of this SOSTAC model , M&S develop marketing plan for its new food
product or services which are as follows:
Situation
Under this aspect, M&S make an initiative to identify its potentiality and performance
inside industry so that they can take corrective course of action in terms of achieving the
business objective in an trenchant way. However, company conduct SWOT analysis which is
mentioned below:
Strength
The major strength of M&S is that it has global
Weakness
The manor weakness of M&S that it sometime
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presence across the globe and well recognised
for maintaining quality in its product.
However, it help them to enlarge its market
share with its food division also within
marketplace (Järvinen and Taiminen, 2016).
get fails in keeping products within its
inventory. Due to which, customer face issue
in consuming and achieving satisfaction of
products in an improved manner. Hence,
establishment should allocate its resources at
optimal level so that that can easily explore its
food sector in a better way.
Opportunity
Hence, M&S has good online presence that
enable them et expand its market into new
geographical region which lead them to gain
competitive advantage in its food division in a
desired time limit.
Threat
There is an greater level of competition among
retail industry which challenge M&S to
enlarge its sales performance. Some of its
competitors are ASDA, Sainsbury, Morrisons,
Next and etc. Henceforth, appropriate
marketing strategy help organisation to
improve its overall proficiency ratio.
Objective
Visions: The core vision of M&S is to deliver the high quality of products with an aim of
achieving increased level of customer satisfaction.
Mission: The primal mission of M&S is to create positive response among targeted
audience by offering high quality of products and services.
Business objective: The foremost objective of M&S is to improve the sales performance
by 15% in a upcoming year within a period of 6 months (Kannan, 2017).
Strategy
Segmentation: Under this, M&S segment its product into various groups i.e. mealtime
lunch, beverages, starters, desserts by keeping best quality which lead them to acquire positive
response from customers.
Targeting: In this, M&S mainly target families and young adults by delivering meal time
food and some other starters which empower them to capture the interest of population towards
brand in an impressive style.
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Positioning: In this, M&S position its food division near to malls, corporate areas that
enhance the sales volume of company in an innovative style (Katsikeas and et. al., 2016).
Tactics
M&S implies marketing mix for its new product which is explained below:
Product: This factor deals with delivering the best quality of product or services to retain
the customer for long terms.
Price: In this, M&S impose affordable pricing strategy so that consumer can acquire
increased level of satisfaction.
Place: Under this, organisation place its brand in an aggressive and competent position
for attaining sustainable growth in an amended mode.
Promotion: IN this, M&S make use of various traditional and latest innovative
technologies like advertisement in newspaper, social media platforms, online marketing and etc.
fort gaining competitive advantage.
Actions
Under this aspect, M&S allocate all required resources at optimal level so that maximise
the profit in an effective manner and also hire highly skilled workforce who are capable enough
to manage all industry competition in an innovative style. Moreover, making use of advanced
promotional tools and campaigns for exploring the market share or size in an improved mode
(Kotler and et. al., 2018).
Control
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 5500 7000 10000 5000 13000
Investment 2500 6000 15000 25000 12000
Total 8000 13000 25000 30000 25000
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Marketing outlay
Promotion 8000 3000 5000 6000 5000
sales publicity 2000 5000 5000 6000 3000
Direct selling 2000 10000 2000 2000 4000
Total 12000 18000 12000 14000 11000
Development of marketing mix
It is an activity of putting and placing a right good and product at right place on right
right time in affordable and reasonable prices. It can be a process of creating awareness about the
new or existing product of a company and placing them in to correct marketplace by using
effective pricing strategies. Marks & Spencer is gong to expand it business in food sector so the
marketing mix of the respective company mentioned beneath:
Product- It indicates to the procedure of converting raw material in to finished goods
which have value and the people are ready to purchase them. In M&S, the management of the
company make expansion with its new food products like ice cream, chocolate pudding,
houmous and family meal like beverage, pizza, sweets and others.
Price- It refer to the cost and value which is invested by organisation in manufacturing
goods and services. It can be the prices at which the administration of the firm offer its products
to its customers. In M&S, during the time of expanding its business in food industry with its
different kind of food products. The management can use different pricing strategies like
competitive pricing strategy, skimming and penetration etc (Lovelock and Patterson, 2015).
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Place- It mentions as the place where the products and services of a company in reach of
consumer. Simply, it refers to those ways by which the potential clients of firm can take the
benefits and advantages of goods which are provide by organisation. In M&S, the management
of the company can offer its food product by using both online and offline mode of distribution.
In online, it can use mobile application and offline way it can provide its food products on
restaurants and food stores etc.
Promotion- It refer to the ways of creating awareness about the products and services
which are manufactured by firm. For making familiar customers, companies use different tools
and techniques of promotions. The administration of M&S can use different promotional tools
and channels like social media, TV, print media, web advertisement and others. So that people
can aware with its new food products which are produced in term of business expansion in food
industry.
People- It indicates to those individuals who make their contribution in manufacturing
the products and services or operating the business of organisation. In M&S, the management
contains both employees and customer within this factor because both assist in running the
business of it in appropriate manner. In the respective company, when the company operate in
food industry then it required to have those employees who are multitasker, able to adopt new
technologies, capable to work in different situations and others (Wilson and et. al., 2016).
Process- This factor of marketing mix indicates to the activities of manufacturing,
packaging and distribution etc. In M&S, the administration of the company can use automation
technology in food manufacturing or effective machinery which help the company in better
production of products. In distribution of the goods the management can prefer online and offline
both way. In term of payment process, the firm can use online payment and in term of cash.
Physical evidence- It refer to the packaging and tangibility of the goods which are
manufactured by the firm. In M&S, for the packaging of its food products, firm can use air tight
box and effective packaging so that they are easy to carry and attractive. When the consumer use
online mode of purchasing then they can reach to the customer in their actual position without
any kind of damage etc (Zhang and et. al., 2016).
CONCLUSION
It has been concluded from the above mentioned content that an effective marketing
strategy help organisation to acquire best position and also can accomplish the goal in an better
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manner. Moreover, with the application of PESTLE and marketing mix it drive establishment to
determine internal or external forces as well as to maintain high quality in products. Due to
which, it assist them to enlarge its market share or size among competitors in an impressive style.
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REFERENCES
Books and Journals
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Transilvania University of Brasov. Economic Sciences. Series V. 8(2). p.111.
Dwivedi, Y. K., Kapoor, K. K. and Chen, H., 2015. Social media marketing and advertising. The
Marketing Review. 15(3). pp.289-309.
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transformation of marketing. Journal of Business Research. 69(2). pp.897-904.
Felix, R., Rauschnabel, P. A. and Hinsch, C., 2017. Elements of strategic social media
marketing: A holistic framework. Journal of Business Research. 70. pp.118-126.
Järvinen, J. and Taiminen, H., 2016. Harnessing marketing automation for B2B content
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Kannan, P. K., 2017. Digital marketing: A framework, review and research agenda. International
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Katsikeas, C. S. and et. al., 2016. Assessing performance outcomes in marketing. Journal of
Marketing. 80(2). pp.1-20.
Kotler, P. and et. al., 2018. Marketing management: an Asian perspective. Pearson.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Wilson, A. and et. al., 2016. Services marketing: Integrating customer focus across the firm.
Zhang, J. Z. and et. al., 2016. Dynamic relationship marketing. Journal of Marketing. 80(5).
pp.53-75.
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