Marks & Spencer: New Venture Development, Strategies & Consumers

This report examines new venture development within the context of Marks & Spencer, a British retail giant. It focuses on product strategies, particularly the introduction of an own-brand line of nutraceuticals emphasizing healthy and sustainable eating options. The report analyzes the marketing mix (product, price, promotion, people, process, and physical evidence) and evaluates the value proposition for consumers. It also explores how the company aims to appeal to its target consumer base and maintain a competitive edge in the retail industry by understanding the strengths and expectations of the consumer.

New Venture
Development
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Product strategies in context of new venture development....................................................3
Marketing mix........................................................................................................................4
Value proposition and consumers..........................................................................................7
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9
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INTRODUCTION
Developing a new venture is highly risky because there are various external variables
which impact this success of new venture. In addition to this constant market fluctuations
also affect the possibility of succeeding in introduction of a new venture (Boone, Andries and
Clarysse, 2020). The present report looks at new venture development in context of British retail
giant Marks and Spencer. The company was founded in the year 1884 end is currently expanded
to more than 100 international markets. Marks and Spencer offers a wide range of unbranded
products along with retailing another brand. Developing a new venture is important for Marks
and Spencer because it's reports expansion into international markets and helps
diversify product range. the two teams selected for this report are marketing mix, value
proposition and consumers. This report also looks at product strategies in context of a new
venture development at Marks and Spencer. The two themes marketing mix, value proposition
and consumers is critically evaluated in context of Marks and Spencer in this report.
MAIN BODY
Product strategies in context of new venture development
A product strategy describes the name of the company with introducing a new product in
the market and ways with which the company focuses on attaining this aim (Horne and et al.,
2020). In case of marks and Spencer, company regularly offers new products and services in
different international markets to appeal to its target consumer base and maintaining competitive
edge in the retail industry. The new venture introduced in this report we will be own brand line
of nutraceuticals. Marks and Spencer brand of nutraceuticals we offer consumers various
products for healthy eating. This new venture product line introduced by Marks and Spencer will
include nutritional supplements functional foods medicinal foods and gut microbiome
enhancement foods such as prebiotics probiotics and postbiotics. The product strategy for this
new venture will be to introduce healthy eating nutraceuticals brand line as healthy and
sustainable options for daily diet. This product strategy will focus on increasing the presence of
Marks and Spencer in food retail and increase the profitability of the Marks and Spencer by
participating in the current trend of healthy eating and fitness.
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Marketing mix
Marketing mix is a simple framework which can be used by business firms to create a
suitable marketing strategy (Lim, 2021). Traditionally the marketing mix contains four elements
but it has been evolved since its inception to provide additional three elements which cover all
the marketing activities of the company. Decision elements included in the marketing mix are
product, price, place, promotion, people, process and physical evidence. The description and
application of marketing mix in context of the new venture of own brand line of nutraceuticals
is provided below:
o Product: The first element of the marketing mix looks at the product or service
offered by the new venture. The verdict needs to be according to consumer demand
and fulfill consumer requirement in comparatively better manner then rival business
firms and alternatives. In case of the new venture introduced by Marks and Spencer
the product is own brand line of nutraceuticals. This involves offering vitamin,
mineral and other dietary supplements, dietary fiber, phytonutrients, prebiotics,
probiotics and postbiotics along with hydrolyzed proteins. This own brand line of
nutraceuticals will be targeted toward consumers who are looking for healthy diet
options and engage in fitness activities. The advantage of this is that the own brand
line nutraceuticals will complete the need of consumer to gain sustainable
pharmaceutical alternatives which provide physiological benefits. The disadvantage
of this marketing mix element is that offering nutraceuticals requires pharmaceutical
licensing in certain international markets which can increase the difficulty of selling
the product.
o Price: This element of the marketing mix focuses on the price of the products or
services offered by the company. It is an important element of marketing because the
price of the product affects consumer decision making related to purchase of the
product (Dost and et. al., 2019). Marks and Spencer has adopted competitive
writing strategy to sell their products or services. This is because consumers have
now more than ever options in the retail sector and increasing competition from
digital retail firms makes this pricing strategy the most beneficial strategy for Marks
and Spencer. In case of the new venture of own brand line of nutraceuticals, the
pricing strategy will include dynamic pricing strategy. This involves introducing
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a sale or discount range to increase purchase during specific seasons. The advantage
of this pricing strategy is that with the help of dynamic pricing strategy Marks and
Spencer will be able to reach medium income as well as high income consumer base
and maximize profitability of own brand line of nutraceuticals. The disadvantage
associated with this strategy is that it can reduce the profit margin gained by the
respective from the sale of the products.
o Promotion: The advertising activities conducted by the company to connect with
consumers and increase interest of the consumers towards the new venture or
described in the promotion element of the marketing mix (Raewf, Thabit and Jasim,
2021). In case of the new venture of own brand line of nutraceuticals introduced by
Marks and Spencer the promotion activities include social media marketing, search
engine optimization, influencer marketing with fitness influencers and advertisements
in TV and print media associated with fitness, sports, health and well-
being. The advantage of this type of promotion for own brand line of
nutraceuticals offered by Marks and Spencer is that it will help the company reach
target audience of fitness followers well interested in purchasing search products for
the physiological benefit. The disadvantage associated with this type of promotion is
that it heavily relies on digital media which can alienate older than rumors also
looking for health benefit products.
o People: In this element of marketing mix, the individuals associated with
delivering the product or service to the consumer are they prime focus. The
interaction between consumers and employees also affects consumer decision making
enter this faction is used by the consumer from the purchased commodity which
makes this element of the marketing mix important (Pomering, 2017). In case of
the own brand line of nutraceuticals introduced by Marks and Spencer, you must
always stuff will be prepared which is able to persuade consumers into purchasing the
products of this new venture by giving them information about the health benefits
associated with each product under this line. Employees will be trained to provide
exception consumer service and ensuring that the decision making of the consumer is
positively influenced towards the own brand line of nutraceuticals offered by Marks
and Spencer. The advantage of this aspect of the marketing mix is that it will help
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the company provide maximum satisfaction to the consumers and retain them for
longer time. The disadvantage associated with this aspect of marketing mix is that
ineffective consumer service provided by a single employee can harm the reputation
of the whole company and lead to the failure of this new venture.
o Process: The functions tasks and activities related to the delivery of products to
the consumers are covered in this element of the marketing mix (Solimun and
Fernandes, 2018). In case of the new venture introduced by Marks and Spencer
of own brand line of nutraceuticals the process used for delivery of the products
include using advanced technology to track online delivery and ensure that every
consumer in outlet of Marks and Spencer is delivered the
right amount of products before time. The advantage of this type of delivery process
is that the company will be able to provide consumers maximum satisfaction
and ensure that every outlet remains stocked as per consumer demands.
The disadvantage of this process is that any disruption in supply chain can impact
the timely delivery of products.
o Physical Evidence: The final point of the marketing mix looks at the physical
environment and ambience of the outlet through which the consumer buys a product
or website which is used for online ordering of products (Loo and Leung, 2018). The
physical evidence is an important part of marketing mix because the ambiance of the
store and effectiveness of the web site affects consumer experience and that their
decision making about the product. The own brand line of nutraceuticals introduced
by Marks and Spencer will be located in organized section near the health and fitness
area of Marks and Spencer outlets. This will support the consumers in easily
finding the new venture products in Marks and Spencer stores and support
increase in sale of the products. The website of the company will be updated to ensure
best consumer experience is given so that online order of own brand line of
nutraceuticals is not affected by technical difficulties. The advantage of creating this
type of physical evidence is that it will improve consumer experience and influence
them into purchasing the product. The disadvantage of this type of physical evidence
is that website protection requires regular updates and the time consuming process
which can affect other activities at the company.
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Value proposition and consumers
Value proposition is defined as the value delivered by the company to consumers for
purchasing or specific product (Payne, Frow and Eggert, 2017). The value proposition of the
company is presented as a business or marketing statement which provides an overview for
purchasing the specific product or service. Value proposition persuades the consumer into
purchasing the product by covering ways in which it provides better value or
solves a specific problem for the consumer in a more effective manner. The value proposition of
new venture of own brand line of nutraceuticals is described and critically analyzed below:
Value Proposition model
Consumer Profile
 Gains: The benefit expected by the consumer in case of own brand line of
nutraceuticals his improvement in health and fitness
 Pains: The primary pain for target consumers of own brand line of nutraceuticals offered
by Marks and Spencer his lack of affordability and products nutraceuticals with side effects.
 Consumer Jobs: The functional tasks which the consumers want to complete through
own brand line of nutraceuticals provided by Marks and Spencer is betterment in health
and well being.
Value Map
 Gain creators: The gain creators for consumers of own brand line of nutraceuticals by
Marks and Spencer is the affordable and healthy need to the product line.
 Pain relievers: The elements of the product which eliminate pain points of the consumers
are discussed here (Shah and et. al., 2020). The primary pain reliever of this product is
that it will be delivery in a timely manner eliminating time loss for the consumer and is
affordable for middle class consumers also.
 Products and services: The product of own brand line of high quality nutraceuticals
products by Marks and Spencer which improves health of the consumer and offers them
many physiological benefits along with timely on recently novices and highly responsive
consumer care services will provide gains and eliminate pains of the consumers.
The merit of using value proposition canvas to link value with target consumer is that it helps
understand the strengths and expectations of the consumer while the demerit of this is that it can
ignore personal preferences and expectations of individuals consumers.
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CONCLUSION
From thee above report it is concluded that marketing mix and value proposition of the
new venture play an important role in creating a suitable strategy for introduction of the
venture. Marketing mix provides business firms ways effectively promote
their product and ensure that needs of the target consumer base are fulfilled. The servants of the
marketing mix health business firms ensure that the new venture developed is marketed in a
suitable manner to reach target consumers and enhance profitability. Value proposition offered
by the new business venture is of prime importance in determining the success of the venture.
This is because the value proposition of the company is directly related to the
satisfaction gained by the consumer by purchasing the product or service offered by the new
venture. The value proposition model can be used by business firms to understand
the fit between the proposed product and the market. The usage of value proposition
module helps link the consumer profile with the characteristics of the new venture and
understand if the value proposition of the new venture is profitable and satisfactory for the target
market.
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REFRENCES
Books and Journals
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relationship conflict and team performance? On the importance of fit between passion
focus and venture development stage. Journal of Business Venturing, 35(5). p.105984.
Dost and et. al., 2019. Seeding as part of the marketing mix: word-of-mouth program interactions
for fast-moving consumer goods. Journal of Marketing, 83(2). pp.62-81.
Horne and et al., 2020. Exploring entrepreneurship related to the sustainable development goals-
mapping new venture activities with semi-automated content analysis. Journal of
Cleaner Production, 242. p.118052.
Lim, W. M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic
Marketing, 29(5). pp.453-469.
Loo, P. T. and Leung, R., 2018. A service failure framework of hotels in Taiwan: Adaptation of
7Ps marketing mix elements. Journal of vacation marketing, 24(1). pp.79-100.
Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science, 45(4). pp.467-489.
Pomering, A., 2017. Marketing for sustainability: Extending the conceptualisation of the
marketing mix to drive value for individuals and society at large. Australasian
Marketing Journal, 25(2). pp.157-165.
Raewf, M. B., Thabit, T. H. and Jasim, Y. A., 2021. The Relationship between the Elements of
Marketing Mix and Consumer Behavior during Environmental Uncertainty. Cihan
University-Erbil Journal of Humanities and Social Sciences, 5(1). pp.50-55.
Shah and et. al., 2020. Quality versus costs related to gastrointestinal surgery: Disentangling the
value proposition. Journal of Gastrointestinal Surgery, pp.1-10.
Solimun, S. and Fernandes, A. A. R., 2018. The mediation effect of customer satisfaction in the
relationship between service quality, service orientation, and marketing mix strategy to
customer loyalty. Journal of Management Development.
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