University Assignment: PGBM15 Marketing Management Report on M&S

This report critically evaluates Marks & Spencer's (M&S) marketing strategies, focusing on delivering value to its current brands and customers, using various marketing philosophies such as production, product, selling, marketing, and holistic marketing concepts. It delves into the dynamics and trends within the UK retail industry, conducting a situational analysis to identify opportunities and challenges for M&S. The report examines factors like consumer behavior, digital marketing, and supply chains, including the impact of Brexit. Based on the identified dynamics, it provides recommendations for marketing strategies and tactics, including product development and segmentation, to satisfy marketplace needs and enhance market share, supported by relevant theory and practical examples. The report covers various aspects such as integrated, performance and relationship marketing and the strengths of M&S's approach to customer satisfaction and brand awareness.

Running Head: PGBM15 MARKETING MANAGEMENT ASSIGNMENT
PGBM15 Marketing Management Assignment
Name of the Student
Name of the University
Author’s Note

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Executive Summary
The sole purpose of undertaking this report is to make use of appropriate knowledge of
business and marketing philosophies and concepts, and then critically evaluating the strengths
of M&S’ strategy in delivering value with respect to its current brands and customers. Later
on, within this report the research will be carried in regard to that of the dynamics trends
within the marketing environment of the UK retail industry. A situational analysis is being
carried out for the identification of the key factors that underpin the opportunities and
challenges for the company. Later on, within this specific report based upon the key
dynamics identified, recommendation is being undertaken by means of covering marketing
strategies and tactics (to any of your selected portfolios within M&S) in order to satisfy
marketplace needs and build its market share. The various suggestions for implementation is
being underpinned with that of the relevant theory and practice.

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Table of Contents
Part 1: Using appropriate knowledge of business and marketing philosophies and concepts,
critically evaluate the strengths of M&S’ strategy in delivering value concerning its current
brands and customers.................................................................................................................3
Production Concepts...............................................................................................................4
Product Concepts....................................................................................................................4
Selling Concept......................................................................................................................5
Marketing Concept.................................................................................................................5
Holistic Marketing Concept...................................................................................................6
Integrated Marketing:.............................................................................................................6
Performance Marketing:.........................................................................................................7
Internal Marketing..................................................................................................................8
Relationship Marketing..........................................................................................................8
Part 2: Research and evaluate the dynamics and trends within the marketing environment of
the UK retail industry. Produce a situational analysis identifying the key factors that underpin
the opportunities and challenges for the company.....................................................................9
UK Marketing Environmental Analysis (Departmental Industry),........................................9
Products and services segmentation (2018-19)....................................................................11
Marketing Environment analysis..........................................................................................11
Marketing Structures and environment:...............................................................................11
BREXIT & its impact on M&S:...........................................................................................12
Changing of consumers behaviour.......................................................................................13
Digital marketing and Knowledge of Technology...............................................................13
Supply Chains of Mark and Spencer:...................................................................................14
Part 3: Based on key dynamics identified in part 2, make appropriate recommendation
covering marketing strategies and tactics (to any of your selected portfolios within M&S) to
satisfy marketplace needs and build its market share. Your suggestions for implementation
must be underpinned with relevant theory and practice...........................................................15
Marketing Strategies of Marks and Spenser:........................................................................15
Product Development Strategy:............................................................................................16
Segmenting, Target and Positioning Strategy of Marks and Spenser:.................................18
Recommendations....................................................................................................................21
Conclusion................................................................................................................................24
References................................................................................................................................25

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Part 1: Using appropriate knowledge of business and marketing philosophies and
concepts, critically evaluate the strengths of M&S’ strategy in delivering value
concerning its current brands and customers.
According to the author (Kotler et al. 2015), says that Marketing is an organisational
function, a philosophy of the business and a set of processes for creating, communicating and
delivering value to customers. Another way to say that it is the science and art of discovering,
produce and distribute an efficient way which satisfies the worth of products or services and
requirements of the target market to make a profit. There are various marketing philosophies
used in the business operation to guide their marketing efforts.
The marketing concepts are relating to business philosophy which classifies needs and
wants of customers; it benefits both customers and the organisation. But identical or one kind
of marketing philosophy is not suitable for every business. Hence, it required different
business concepts. These concepts determined by clear objectives, a) Cost efficiency, b)
Product quality, c) Customer’s needs and satisfaction etc.
Marketing management philosophy also is known as marketing concepts. The choice of
the concepts depends on the company in which fields they will target to satisfy customers’
needs and wants to make maximum profit. Therefore, under the marketing philosophy – the
following five concepts are explained: they are as follows:
 Production Concept.
 Product Concepts.
 Selling Concepts.
 Marketing Concepts.
 Social Marketing Concepts.

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Production Concepts
This concept is suitable for mass production and low-cost price when knowing the steady
consumption market and consumer prefer the products. It belongs to the Law of supply and
demand formula. This concept works well when demand is higher than supply. Hence,
companies are focusing on producing more products to reach total market audiences at a low
price. Low price products may attract new customers, but they do not focus on the quality,
and so it may backfire of fewer sales because of substandard products of some audiences.
Example of production concepts:
 This approach is perfect for the companies whose market are spread all over the world.
M&S can’t get many benefits out of it because there are many players in the market
involved with similar business.
 Advantage of doing monopoly business.
 Whose products demand is higher than supply.
Product Concepts
This is product orient concepts which don’t influence the consumers buying
decision. Here consumers prefer high quality product because the price is not very important
factors for them. Hence, the company needs to concentrate on high quality product and
continuous improvement to keep a certain group of consumers who afford to pay more. But
sometimes it became very expensive, and customer buy when they need them, it reduced the
company’s sales figures. The factors like the product price, availability, usability is driven by
certain group of consumers – company fail to full fill their needs. This is the drawback of this
concept. Example of product concept are as follows:
 This concept is suitable if the company is involved with technology industries like
smartphones, laptops, medical machinery etc.

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 If the company has no strong competitor, then they can take advantage of monopoly
business.
Selling Concept
This Concept emphasis on attracting and influencing customers to purchase the
product by violent selling and advertising trick. It focuses on make the sale as much as
possible of the product not paying much attention to the quality and customers’ needs. Only
one aim to make money. This concept doesn’t bother to make a bond with customers, and
that’s why there is a less repeated sale. The main aim of selling is to convert goods into cash.
Hence selling can be productive only for a short period. This is a short-sighted philosophy
approach. Example:
 Companies have short-sighted profit goals. This indicates to marketing myopia.
 Fake companies make a profit and disappear from the market.
Marketing Concept
According to this concept, customer satisfaction is the main key to success of the
business. It is concerned with raising brand awareness among the consumer market. It
resembles towards making the use of the media platform and that of the social-media
channels to depict out the list of advantages that will be obtained with the consumption of the
product that is being offered. This concept is based on four factors, and these are –
1. Classify the target market.
2. Customers’ needs and wants to be understood in the selected market.
3. Product development and services to be done as the needs of target customers.
In this concept focusing on how to fulfil the needs of customers without disturbing the
environment, natural resources and humanity who are involved in the broad society. This
philosophy believes that the business is a part of the society and it should take part in the
social services like poverty control, illiteracy, controlling explosive population growth, the

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limit of using plastic bags, recycled paper etc. There are many larger organisations take that
marketing activity is part of their ‘’corporate social responsibility’’. M&S has a special cell to
collect clothing and unused products to control environment as a part of the responsibility.
Holistic Marketing Concept
The brand is the largest retailer company. It generates it revenues from the upper and
middle level consumer market segment. It took initiative in the CSR activity within the year
of 2003. M&S have always shown a mark improvement in the standards, values and prices of
their products but above all their prime focus was increase the number of customers and the
turnover.
Figure: Holistic Marketing
Source: (Statistica, 2019)
Integrated Marketing:
(Products & Services, Price, Communications and Channels), Strategy of product and
service differentiation is the main feature for M&S. By providing a welcoming, co-operative
service that promises greater shopping comfort and closeness to clients, differentiate M&S
from other high street retailers. The company swiftly turn into a household name, with a

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strong business image. This could be relied to give good “value for money” and became more
fruitful.
Performance Marketing:
They even made use of five year eco plan. This plan is being converted into several
phases. Phase A is successful which aims at making improvement within the environmental
phase. On the other side, it is because of the plan A in the year of 2009, the concern firm was
able to introduce about £50m additional profit. About 50,000 tones reduction within CO2
emissions. Marks and Spencer recycled about 1.8 million used clothing by making use of the
Oxfam. The waste of 20,000 tones is diverted from landfill. The carrier bags usage is reduced
by 400 million bags by charging and encouraging customers not to use them.
Relationship Marketing
The concerning firm makes use of the social-media platform to raise brand awareness.
Besides, the firm makes use of the digital marketing platform to penetrate the other region of
the market. Besides, the use of the loyalty programs is being introduced which gives the
option to collect loyalty points and rewards, which can be used in the later period for
undertaking purchase activity. Besides, the firm identifies the potential consumers upon the
number of loyalty points. This loyal consumers are served with tailor made discounts and
offers to safeguard their interests.
Wide variety of products: Marks and Spencer’s had a variety of products in every
store which helps the customers to choose the best. For example, if we take vegetables,
Marks and Spencer’s began to sell the vegetables and fruits over 40 years ago, they started
selling fruits and vegetables such as Canary tomatoes, avocados and English apples, carrots,
and M&S always trusted on the farmers with good relationship from where they can increase

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the variety of products. Back in 1970’s Marks and Spencer’s influenced small growers of
strawberries to drive their crop straight to local marks and Spencer’s stores.
To find the perfect taste of the customer's Marks and Spencer’s spend more than three
years on testing and tasting the strawberries before launching marks and Spencer’s jubilee
Strawberry in summer 2003. Now Marks and Spencer’s has more than 1200 suppliers with
over 400 different varieties, as well as 500 different types of pre-prepared fruits, vegetables
and salads.
Part 2: Research and evaluate the dynamics and trends within the marketing
environment of the UK retail industry. Produce a situational analysis identifying the
key factors that underpin the opportunities and challenges for the company.
UK Marketing Environmental Analysis (Departmental Industry),
A set of business activities is called retailing or vending which adds value to the
product and services vended to the consumers. Earlier it thought that the sale of products in
the stores is retailing, but it involves the sales of services too. As per Philip Kotler, retailing
includes all the activities involved in selling goods or services to the final consumers for
personal, non-business use. A retailer or retail store business enterprise’s sale volume comes
primarily from retailing. These are the final business entities in a distribution channel that
links manufacturers to customers. Manufacturers typically make products and sell them to
retailers or wholesalers. Wholesalers resell these products to the retailers, and finally,
retailers resell these products to the ultimate consumers (www.pwc.com.uy, 2019).
According to IBIS World industry report, the department stores in 2018 to 2019
shows,
Revenue Annual Growth (14 – 19) Annual Growth (19 – 24)

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£ 18.4bn 0.2% 0.5%
Profit Wages Business
£991.5m £2.8bn 101
The above analysis gives an idea about the retail industry market. Earning shows 18.4
bn GBP by only 0.2% growth rate for the year 2014 to 2019 and projecting annual growth
rate 0.5% for the year 2019 to 2024. Where profits are GBP 991,5m and wages is GBP2.8bn.
The total market Shareholding these groups as follows -
John Lewis
Partnership Plc
Mark & Spencer
Group Plc
Debenhams Plc Harrods Ltd.
21.3% 20.7% 9.9% 5%
These figures express that John Lewis Plc is on the top of market share competing
with other strong rivals. Mark and Spencer are holding 20.7% of the market share and
followed by Debenham 9.9% and Harrods 5% respectively. Other retailers are doing similar
business in the competitive market. These are the closest competitor of Mark and Spencer in
the line of various portfolio business. As per M & S annual report 2018, shows clothing and
home revenue was GBP 3.7bn in the UK only, and this sector declined -1.4%. Contribution to
the UK revenue was 39% (Marksandspencer.com, 2018).

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3.10%
24.60%
20.30%
16.50%
14.40%
9.40%
5.90% 5.80%
Food
Clothing
Health & beauty products
House hold items & furniture
Accessories
Electricals
Games & toys
Books and all other products
Figure: Market Share
Source: (Statistica, 2019)
Products and services segmentation (2018-19)
The subsequent pie charts specify the percentages of different segments of the
business portfolio of mark and Spencer at present. The chief executive, Steve-Rowe narrated
- “M&S needs to change and change fast. We are now in the first phase of our
transformation, restoring the basics so that we can deliver sustainable, profitable growth to
investors, colleagues and the communities in which we operate.”
Marketing Environment analysis
In this session going to analyse a bit of different ecological influences on Mark and
Spencer retail business. Studying marketing atmosphere is crucial to developing marketing
tactics to the environment (Kotler et al. 2018).
Marketing Structures and environment:
There are two parts of the marketing environment; it is Macro- environment and
Microenvironment. External factors fall under the macro environment. These factors are
uncontrollable by the business organisation, but they can be acclimated the factors. M&S is
going through this turmoil due to unstable various environmental issues. The organisation is
trying to save the business to tackle the present situation. The CEO has taken a few strong
steps to close unproductive stores to reduce the burden of expenses. As the negative impact of

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referendum 2016, retail business sectors heavily affected. M & S clothing sales declined by
8.9% (Hammand, 2018)
Figure: Macro & Micro environmental factors
Source: Statistica, 2019
BREXIT & its impact on M&S:
Macro factors are affecting M&S retail business in the UK. Retail industry under
pressure due to BREXIT issue. It’s disturbed the stable market since 2016; many retailers
find themselves uncomfortable as profit margin going down comparing to increasing cost and
less demand (deloitte.com). Confidence of consumers has dropped and as well confused.
There are numbers of business organisations that moved from the UK to other European
countries; it may hurt the labour market. Cost of living increasing because of the price of
essential commodities tending to reach up.
Changing of consumers behaviour
The changes of consumer’s behaviour are another challenge of the retail business,
lack of disposable income restrict to purchase different occasional clothes, and that reflect on
total M&S sales (Eley et al. 2018). Customers tend to spend less and buy from more
convenient home and pay comparatively lower than the store. So, this is the challenge of