Marketing Management - Marks and Spencer

MAIN BODY

Industry Background

Retail industry is the most popular industry in all over the world. Businesses which involved in this industry has great opportunities to expand their business activities in different areas of the world. Retail industry is basically offering products and services which are helpful fulfil daily life needs, like; consumer goods, home products, food products, clothing, etc. Many of the companies has gained great success in this industry. Some leading retail companies in the world are Walmart, Tesco, Marks and Spencer, Aldi, etc. These companies have highly expanded their business activities in all market segments in the world (MARKS AND SPENCER CASE STUDY, 2018). Specially the Walmart has the largest supermarket chain in the international market. The Unilever is also a very big company in the retail industry which providing their products and services to almost all countries. People are highly dependent on the retail industry of fulfil their daily life demands and needs. It is playing great role in the market, because without this industry people can't imagine their life.

Company Background

Marks and Spencer is one of the leading British retail companies, headquartered in London, United Kingdom. It is providing their products and services in all around the world. In the many markets at the international level it has great customers base, specially in the countries like; United Kingdom, Ireland, Netherlands, Paris, etc. The company focuses of offering such retail items, like; clothing, food and home products. Flowers and gifts, and furnitures, etc. It is one of the most trusted brand in its home country UK. The Marks and Spencer is highly known on the basis of its effective product prices. It always tries to provide products and services at the favourable and reasonable price (Atwal and Williams, 2017). With this term the company is highly successful in make a large customer base in the international market. Its marketing management is so effective at their work. With the help of strong marketing management the Marks and Spencer currently gaining huge competitive advantage in the global market. In this time the company running their all business activities on the progressive path.

Market Positioning

For perfectly describe the market positioning of the Marks and Spencer here is applied the porter's five forces model below;

Bargaining Power of Buyer: The Marks and Spencer already offering favourable prices of the products to the customers. In this case customers never look for alternative products, but here is bargaining power of the buyer is something higher. The reason behind this statement is, currently customers have many choices for buy a product which the company offered. Here is company has not any command on the customers choices. In which for maintain bargaining of the customers the company already taken many actions, like; provide quality products on the customer friendly prices, provide new range of products and services, follow the customer feedbacks, etc. With the help of these attempts the company perfectly maintaining a good relationship with buyers or customers (Crick and Crick, 2016). The company mainly focuses on fulfil medium and low income groups demands. So, with this the company gaining great attention from the people at the international market. There are many chances for the company to welcome new customers by offer some discounting strategies at their stores. Here is specially in the European countries customers are ready to pay any cost for buy a quality product. In this situation the company always try to provide best of the best quality products to the customers in those countries.

Bargaining Power of Suppliers: Currently there are many companies are running their operations in the retail industry with the Marks and Spencer. Here is suppliers also at the very large number in this industry. So, the bargaining power of suppliers for the Marks and Spencer is some weak. The company has suppliers for buy products to sale in their stores. In this situation it easily fulfils their raw material needs at the cheapest prices (Mu and et.al., 2018). It also has great brand value in the market so suppliers mostly settle deals on the basis of company's terms and conditions. In some cases when market faces raw material shortage, then the company need to pay their suppliers as they want for fulfil its raw material needs in that shortage time period. The top-level management always try to make fair deal standards with their suppliers to run deals for long time. It is necessary for save many useful cost and time of the company. It has great relations with their supplier. With this relationship the company able to take huge advances from their suppliers.

Threat of New Entrants: The company has great reputation in the international market. In this situation if any new company want to enter the company's market segments, then that company need to face huge challenges in their initial stage. The reason behind this statement is it has large customers loyal customer base in the different segments. In which it is hard for new company to take attention of those customers which completely depended on the Marks and Spencer for fulfil their daily life needs (Forkmann and et.al., 2016). So, here is the threat of new entrants weaker for the company. In other if the top-level management at the company want to the new market. In this case it'll also face challenges related to the market competition in the new market. The company always need to expand their business in those market segments where competition in the retail industry is very lower. Here is this is major responsibility for the marketing department of the company to find such markets segments for the company.

Threat of Substitute: Marks and Spencer's research and development department is continuously working on innovate and produce new range of products and services for the customers. In which the company highly consider this factor in their business environment. The company perfectly knows there are many options for the customers to buy a product which company offered. For take full attention of the customers in the market it always tries to give products on the favourable prices. So, the customers not change their mindset for buy substitute products (Hughes, Vafeas and Hilton, 2018). Specially in the clothing business, the company full try to convince people to buy only Marks and Spencer cloths with the help of its customer friendly pricing strategy.

Competitive Rivalry: Here is strong competition in the retail industry. There are many companies are working with the M&S in the same industry as competitors. Suppose only in its home country United Kingdom the company faces huge competition in the retail industry. The major competitors for the M&S in the UK are Tesco, ASDA (a subsidiary of Walmart), Sainsbury, Iceland, etc. In this situation the company taken many actions for face this high competition challenge in the market (Hunt, 2018). These actions include; provide unique products and services, Always present new version of products and services, Run discounting strategies, Provide special offers or deals, etc. With the help of these actions the M&S is able to gain huge competitive advantage in the market.

Unique Selling Proposition

Unique selling proposition (USP) concept is completely followed by the M&S in their business operations. The marketing department of the company is mainly responsible body for handle this task. By employ USP concept in their operations the company is able to provide its exclusive range of products and services to the customers. The company specially provide unique products under its premium labels, like; Per Una, Indigo collection, North Coast, Autograph, etc. The management at M&S believe in provide exclusive range of products and services for always attached with customers in the market (Kennedy, 2017). Here is the marketing team of the company is mostly focuses on run some different and unique marketing campaigns in the market. The USP is very helpful to the M&S for gain huge people attention towards brand in the international market.

Internal Factors

There are discusses the major internal factors of the M&S which are highly influencing its over all growth in the market. For perfectly know its internal factors here is included the SWOT analysis;

Strengths: The M&S has great brand image or value at the international level. The company founded in the 1884. It is really very long time period for a company which working in the retail industry. For past 136 years to date the company gained large customer base in all around the world. Its marketing aspect is also very strong in the comparison of their competitors. The research and development department of the company is highly active in the innovation and launching of new products (Kimura, 2017). The company selling effective product range under its premium labels. Here is the last one is its pricing strategy is also very productive and giving great contribution in the over all growth of the M&S.

Weaknesses: Marks and Spencer's operations are not much effective in the foreign markets. The supply chain of the company is also something poor for last few years. In some operations it is still using traditional ways. In this case the company need to employ such new and modern paths for cover all activities under its operations. The M&S not following needed strategies to face market competition in many countries. The current business expansion process is also become slow in the comparison of last few years. It highly covered clothing markets like UK, US, Netherlands, etc. but when the was entered the Asian markets, the M&S was not gain much success (Loebler, 2017). The main reason behind become unsuccessful is, in the Asian markets the company was only focused on provide western cloths without including traditional cloths. So, the company not gain high profit in that market segment.

Opportunities: There are great opportunities for the M&S to expand their business activities in those countries where its competitors are still not enter. For example middle east and Asian countries, because these countries are at their developing stage. So, the local government of these countries are welcoming to MNCs. Here is social media marketing is also great opportunity for Marks and Spencer's marketing department, because with the help of this it is able to promote their products and services at the large scale (Ahmadi and O'Cass, 2016). The company need to develop their products (specially cloths) on the basis of market trends, because here is great chance for the company to gain high profit by selling trendy and modern cloths in the fashion industry.

Threats: Day by day the competition in the retail industry is increasing. So it is big challenge for the company to handle. In many countries at the international market imposing high taxation on the MNCs. In this case it is hard for the company to pay high taxation amount to the local governments. The Walmart, Tommy Hilfiger, GAP, and ZARA are most challenging competitors for the M&S. The company need to improve its business strategies to perfectly face these all threats in the market.

External Factors

External factors are also highly impacting to the business environment of the Marks and Spencer (Kirova, 2017). Here is included the PESTLE analysis for systematically discuss the major external factors of the company.

Political Factors: Political factors are very highly impacting or affecting to the M&S at the international level. Suppose some countries where the company runs its operations are imposing very high taxation on the M&S. So, it is difficult to the company to pay the large amount of their net income in the taxation. It is really negative influence for the company. In other side the government in some counties are too favourable for the company, because they welcome MNCs imposing very low taxation of international brands, give additional support, etc. In this case it is good and positive influence for the company.

Economic Factors: These factors are also impacting to the company, because all countries not have same economic conditions (Gross and Laamanen, 2018). Suppose some European countries like; UK, Netherlands, Norway, Switzerland, etc. are comes under richest countries in the world. In this case people in these countries are also easily able to afford products and services which the M&S offered. So, the company's profit aspect is automatically growing.

Social Factors: In most of the countries where M&S runs their operations, the social factors are very favourable for the company. Customers understanding the value of Marks and Spencer in the market. In which the company need to fulfil their social responsibilities in the different market segments. By fulfilling these responsibilities the company is able to gain high goodwill in the international market. The company also need to provide best of the best quality products and services to the people for gain their high attention towards brand.

Technological Factors: There are technological factors are also influencing the business environment of the Marks and Spencer (Bang, Joshi and Singh, 2016). Here is great opportunity to the company to implement such new technological gadgets and equipment in their business operations for saving high cost and time at the workplace. By using these gadgets the company able to improve its supply chain. These technological factors are also helpful for the company to improve its production value. Basically these factors are impacting to the company in positive way, because with these it is able to increase its over all business performance in the market.

Legal Factors: The company highly need to follow all legal terms and regulation of the government. For example; the UK government passes employment law which mentioned all companies in the country need to provide suitable payment or salary to the labours and employees. In this condition the M&S necessarily need to follow this law at their workplace. Otherwise, the company will face issues like; court hearing, penalty, and fine etc. So, the top-level management at the company need to analyse and employ all laws and regulations which different governments are running in their particular countries. It is necessary for the company to maintain good brand image at the international level.

Environmental Factors: Many environmental organizations in the world are provided some rules and regulations to the businesses or companies for create safe zone for the environment (Seturi and Urotadze, 2017). These environmental organizations are specially working for protect the environment. They also provided some measures and standards which all companies compulsorily need to follow in their particular business operations. According to the world environment protection act each business need to avoid such attempts which are harmful for the environment of the earth.

Potential for Market Growth

On the basis of these internal and external factors there are great chances for the M&S Spencer to grow their market worldwide. The marketing department of the company need to find some new suitable market segments expand their business activities. In the global retail industry there are many competitors are stand against the company. In which the human resource department at the Marks and Spencer need to hire some highly qualified people in the company as employees which has extra ordinary knowledge of international market. These employees will provide effective and modern business strategies to the company.

Developed version of the business strategies will very helpful for the company to gain huge competitive advantage in the international market (Linton, 2016). The management is responsible to implement CTR (Corporate Social Responsibilities) model in the business environment for fulfil its social responsibilities in the different market segment. This is the best way to the M&S to achieve huge goodwill in the global market. For gain more market share in the retail industry, the company need to implement new technologies in their operations. Specially in the distribution channel in all around the world. It is highly responsible to avoid such activities within business environment which violate the business ethics. Then it will completely able to grow its market at the international level.

4Ps Model for the New Product

The management of M&S is planning to launch a new clothing product in stain less clothing. The company is aiming to improve the existing consumer base with the launch of this new clothing line.

Product: After witnessing the emerging demand the management of M&S is planning to launch the new Stain Less Shirt and T-shirt for all the fashion enthusiasts. Stain less shirt and T-shirt is a unique clothing product that keeps the shirt and t-shirt away from all the stains and dust (Mathews and et.al., 2016). The company management is launching this new product in multiple colours to attract the wide range of fashion enthusiasts. The product range of stain less clothing will include formal shirts, party wear shirts and fashionable t-shirts that all together will generate a new clothing and fashion experience for all the consumer's. Different varieties and sizes for all generation of people will be available under this new clothing line on all the M&S stores. As per the various research and analysis of the designing team this new clothing line will attract all kinds of fashion lover's as the company is launching this new clothing line in both fancy and classy range to deal with expectation's related to all the people.

Feature's of Stain Less Clothing Line:

• Dust resistance
• Stain Resistance
• Stretchable
• Quick Dry
• Winking
• Light, warm and comfy
• Antimicrobial
• Anti odour

All the above feature's of stain less clothing line will be well sufficient to fill all the expectation's attached to the fashion and non fashion enthusiasts across the globe. Various features, varieties and sizes will be fair enough to create a huge witness of all the people in the retail market across the globe (Shchepakin and et.al., 2018). With the launch of new clothing line the management of M&S is aiming to take competitive advantage in the retail market. With the proper marketing strategy formation attached to the new product line the company management will try to take competitve advantage's in the retail market as this new clothing line is affordable and fashionable at the same time that will create extra attention in the retail sector. This new product line will also address the threat related to the upgrading product quality to sustain in the business world. The company will potentially address to all the relatable threats with the successful launch of this new clothing line.

Price: The management of M&S is planning to offer all the products covered in stain less clothing line is in the most affordable price range. The prices of different product's in stain less clothing line will vary as per the features of different products. The company management is offering the stain less shirt's clothing in the price range of 50 to 90 Pounds. Stain less T-shirt's will be priced in the range of approximately 25 to 60 Pounds. The price of different product's is influenced by various features, designs, styles and sizes. The company is offering all such products to all kinds of fashion lover's and also involve all aged people that improve the target consumer base for this new clothing line. As per the market statistics all such prices related to the various products in stain less clothing line is offered by the company management in the most affordable price range that will give the unique combo of fashion and affordability to all the consumer's. The price range of the new clothing line will effectively address the competitive advantage and it will also guide the company to dominate the retail market across the globe.

Read also: R/616/2017 Marketing Essentials for Travel and Tourism - TUI

Promotion: Promotion play the key role behind product success. The management of M&S will utilize all the effective marketing channels to promote this new clothing line. The company management has involved various marketing strategies such as social media marketing, television marketing, radio marketing and other relatable marketing strategies to reach all the potential consumer base for the new clothing line. Based on the market segmentation and targetting process the company management has planned various promotion campaigns to improve the market presence of this new clothing line. Various advertisements has also drafted to attract different age group people (Bhasin, 2018). The marketing team of M&S has already conducted various research to analyse the market segmentation and targetting regarding this new product. Based on the outcome the company will position this new clothing line in the retail market with all the attractive and impactful marketing strategies. Social media marketing will generate the specific attention of all the young fashion lovers that covers majority of target consumer base for this new clothing line. The various promotional campaigns attached to the new product line will address the target consumer base at the global level for M&S. With the effective promotional campaign the company management will try to dominate the retail market and also in the clothing world.

Place: Place is among the major key factors behind the success of marketing strategies. The management of M&S has channelized various marketing platforms that will be able to reach the majority of target consumer base for the new clothing line. Based on the various discrimination related to the target consumer base different marketing channels has identified by the marketing team. Social media marketing channel will improve the product presence in the market for all the young fashion enthusiasts. With the proper marketing strategies for radio and television the company will target the old and medium age group people who are not much active over social media. The company management is also aiming to promote this new clothing line with the promotional aspects attached to the various social cause such as environment protection and other related social cause. This strategy attached will involve various holdings that will also project the new clothing line of the M&S.

All the marketing strategies framed by the management of M&S are conducted as per the brief analysis of various factors such as PESTLE and SWOT related to the new product line to improve the efficiency of all the marketing strategies related to the new product.

CONCLUSION

It can be concluded that the marketing management is playing great role in the growth of the Marks and Spencer. With the help of its effective marketing strategies the company has gained great reputation in the global market. The marketing department always try to use some modern and new strategies in their marketing campaigns for deeply influence the people. Here is company' marketing department still need to improve its strategies, specially in the Asian market segments, because there are many competitors are also using same marketing strategies which the M&S is uses. This also included various internal and external factors which are highly impacting to the business environment of the company in both term, positive and negative. Here is also mentioned the 4Ps model for the company which it necessarily needs to use during launch a new product. With this model the company is able to gain good return from the new product. There are also many opportunities for the M&S to increase its market share in the retail industry. The management of the company currently running its all business operations on the progressive way. If you are Looking for Assignment Help services in UK contact Instant Assignment Help, We offer all types of Sample Reflective Journal Assignment for UK students. We have the best writer who can solve all your educational problems at a reasonable price.

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