Running Head: MARKS & SPENCER

Marketing Plan of Marks & Spencer

[Name of Writer]

[Name of Institute]
 Marks & Spencer ii

Executive Summary

Marketing plan of any organization is considered as one of the most significant tool in

surviving in a market place which is full of competition. Marks and Spencer can be regarded

as the most appropriate example in this regard. The company worth $13 billion currently

plans to expand its product line into the market of Australia, which is most likely to benefit

the organization as a whole. In addition to this, the marketing strategies would evolve from

its traditional planning. Therefore, it is essential for the company to evaluate its potential in

the current market to analyze its consumer base and effectiveness. Currently, the company is

leading the UK market with its homewear, clothing and food retail; and comprise of about

1382 stores across the globe. Since the day it marked its presence in the business place, it has

primarily focused on the style and quality of its product, and has heavily invested in the

innovation of product it offers in all its departments. Marks and Spencer operates in a market

that is highly competitive and have external factors that are influential in that regard.

However, the company has not only sustained its business, but have also projected growth

increased profits and sales. Since the company offers a diversified range of products,

therefore gaining consumer satisfaction is an on-going task. Moreover, the current positioning

of the company is strong and distinctive, and displays potential to achieve success in a long

run. The expansion of this business in other countries and re-evaluation of its current

strategies would also benefit the company.

 Marks & Spencer iii

Table of Contents

Executive Summary...................................................................................................................ii

Task 1.........................................................................................................................................1

Introduction................................................................................................................................1

Situation Analysis.......................................................................................................................1

External Analysis....................................................................................................................1

Internal Analysis.....................................................................................................................4

SWOT Analysis......................................................................................................................6

Objectives...................................................................................................................................6

Strategy......................................................................................................................................7

ANSOFF Matrix.....................................................................................................................8

Segmentation, targeting and positioning (STP).........................................................................8

Tactics/Action.............................................................................................................................9

Budget......................................................................................................................................10

Control......................................................................................................................................10

Conclusion................................................................................................................................11

Task 2.......................................................................................................................................12

Communication Plan................................................................................................................12

References................................................................................................................................14

Appendices...............................................................................................................................18
 Marks & Spencer 1

Marketing Plan of Marks & Spencer

Task 1

Introduction

Initially Marks and Spenser PLC came into existence in 1884 by Michael Marks;

however the brand was reinvented after ten years as Marks & Spencer (M&S). It is now

considered as one of the leading retail store of the world, with more than 1,382 stores across

the world, while 459 of them are based in Middle East and Eurasia. It offers luxury food,

home products and clothing through both, online and physical stores (Marks & Spencer,

2015). M&S is amongst the leading brands in UK for its lingerie, menswear and womenwear.

It is spread across 59 territories of Middle East, Europe and Asia, which encompasses 468

stores that are either franchise, jointly-owned or fully owned (Marks & Spencer, 2016).

Situation Analysis

External Analysis

PESTLE

The PESTLE Analysis is considered to be a framework that is used to identify and

evaluate the factors that exist in external work of a business, and have the potential to

influence the operation of that said business. The factors involved are essential to evaluate in

order to determine the current position of the brand and to base the future strategies (Makos,

2014)

 Political Factors - Marks and Spencer have benefited itself from the free trade

agreement of European Commission, resulting in the ease and convenience of imports

(European Commission, 2013). This has also resulted in the reduced cost of sourcing.

The global uncertainties have caused the international business of M&S to stall in
 Marks & Spencer 2

2015, which compelled the business to shutdown 12 stores in 2016 due to decreased

profitability. .
 Economic Factors - While all the other competitors such as Asos and Aldi were

compelled to offer discounted rates, M&S stood still and focused on delivering the

premium products. Even though it experienced a decline in sales for a short time

period; however it built its over-all consumer base. It has been observed that buyers of

UK have become price sensitive. Different factors such as Brexit, pound fluctuation,

decline in commodity pricing and other microeconomic issues have caused the loss of

confidence amongst potential buyers (Davey, 2016).

 Socio-Cultural Factors - M&S is known for its initiatives in regards with the ethics

and social perspective. It launched a campaign, namely Spark Something Good in

2016 that involved its 1000 employees in its charity event (Marks and Spencer, 2016).
 Technological Factors - The Company has its very own platform on web that allows

user to make their purchase online. It has also presented allocation replenishment and

analytics system as its big data projects. It has around 150 engineers employed to

ensure the integration of technological development (Marks and Spencer, 2016).

 Environmental Factors - As of 2015, the company showcased an initiative, namely

Shwopping, in which 10.6 million of garments were donated to Oxfam. The price of

these garments equated to about £7.3 million.

 Legal Factors - M&S have been proactive in incorporating legal factors as its ultimate

priority. It focuses on the anti-trust factors along with environmental as well as

consumer rights. Also, it emphasis more on the regulation of health and safety.

Porter’s Five Force Model

Designed by Porter, the five force model determines the intensity of competitiveness

that exists in a market place (Porter, 2011). Following is the evaluation of Marks & Spencer

on the basis of Porter’s five force model.

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Bargaining
power of
buyers

Threat of Bargaining
substitute power of
products Suppliers

Porter’s Five
Force Model

Threat of New Competitive

Entrants rivalry

Figure: Porter’s Five Force Model (Porter, 2011)

Threat of New Entrants - Even though the strong and loyal consumer base of M&S

have the potential to discourage new entrants (Vizard, 2015); however, brands like Matalan

and George are attempting to penetrate in the market with low pricing. Also, the focus of

Next, Gap, H&M, and Zara is oriented towards youth as an attempt to address masses with

affordable price and latest fashion. ASOS, on the other hand, offers its customers an online

platform to make purchases (Davey, 2016).

Threat of substitute products - The Company operates in a competitive market, which

requires it to maintain consistency in regards with the needs of consumers (PWC, 2015). The

threat of substitute product for M&S is high, as it is easier to imitate the products offered by

the company, and to sell it in cheaper or affordable price. It is also highly dependent on the

preference of consumers, as they might want to buy products that are affordable and holds

similar quality (Joy et al., 2012)

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Bargaining power of buyers - The product-oriented strategy has not much favoured

the company, as all the other competitors are focusing on the approach that is customer-

oriented, which tends to build strong relations with the people (Ruddick, 2016). In addition to

this, post Brexit consumer confidence is likely to impact the growth in sales, resulting in the

price cutting strategy in order to comply with their needs (Reuters, 2016).

Bargaining power of Suppliers - The Company experienced a sales decline post the

era of 1990s, which compelled it to outsource the overseas suppliers. This caused more

damage than the existing competition of the market in regards with the pricing.

Competitive rivalry - The competition for M&S exists in the form of fashion retailers,

home wear stores, and supermarkets chain. Tesco, ASDA, and Sainsbury are the direct

competitors in regards with its food department; while Zara, John Lewis and Zara directly

compete with the company in terms of home wear and clothing retails (Retail Week, 2016).

Internal Analysis

Porter’s Value Chain

It is amongst the best tool for strategic analysis that identifies the organization’s

activities that are concerned with the production of a service or product that it offers.

Inbound Operations Outbound Marketing Service

Logistics logistics and Sales

Figure: Porter’s Value Chain (Porter, 2011)

Inbound Logistics

It relates to the delivery, storage and transport of the goods that are to be utilized in

the operations of a business. The company initiated Plan A and achieved GBS supply chain
 Marks & Spencer 5

award. M&S is also known for its involvement in environmental and social influence of its

operations in business.

Operations

Marks and Spencer have reportedly invested ample amount of efforts and resources to

enhance the experience of consumer, and to improve the quality of its bakeries and sub-

brands (Marks and Spencer, 2016). However, its website was shutdown in 2015 in

accordance with a security breach.

Outbound logistics

In 2010, the company established a super warehouse after closing different small

regional warehouses. As per the expectations, it is likely to get redeveloped as Bradford

National Distribution Centre in 2016 (Marks and Spencer, 2016)

Marketing and Sales

M&S focuses on the improvement of product, style and quality. In order to do so,

M&S established a storytelling based brand to celebrate the heritage it carries.

Service

Irrespective of various setbacks, such as out-of-stock items and online services

failure; M&S is striving to improve its customer service. It offers free delivery for its

customers on every purchase that is made above £50; along with the free returns if the

product is purchased within 35 days.

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SWOT Analysis

SWOT analysis determines the internal as well as external potential and capabilities

of an organization. It considers the strength, weakness, opportunities, and threats of a

company as per the environment it is functioning in.

Strengths Weakness

 Premium Quality Products  Dependent on British Suppliers, while

 Goodwill among managers and competitors use foreign suppliers for
employees production of low cost
 Maximum coverage in UK  Typical fashion Image
 Covers large market share in retail  Poor advertising
industry  Less offers of discount or sales in
 Profitable business events like Easter or Christmas
 Good relations with suppliers  Not Consumer-oriented
 Good trade experiences since many  Lack youth orientation
decades  No privilege for loyalty cards

Opportunities Threats

 Potential to survive in competition of  Competitors like Zara, TopShop,

e-business. Sainsbury, Tesco and Gap
 Expansion in beauty products, home  Changing demand of consumer
and food items  Other online shopping retailers
 Enhanced consumer satisfaction in  Meeting the demand of foreign
innovation and quality of products market.
 Emphasis in clothing line for youth
and kids.

Objectives

Objectives that are evaluated through the process of SMART, tends to determine the

goals and their attainability in regards with overcoming the milestones.

Specific

The specific goal of M&S is to achieve internalization, it would require the managers

to evaluate the factors associated with the country or region the company has planned to

expand on.
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Measureable

The company must focus on measuring its performance as well as its progress

towards achieving the said goals; and whether or not the said progress is on the right time

track.

Achievable

M&S must evaluate whether or not opening up new stores is achievable by the

company in a given set of time.

Realistic

Marks and Spencer is required to make goals that are realistic and are aligned with the

company’s potential.

Time Bound

The objectives of the company must be achievable in a given time frame, such as it

may aim to have even better market share in next 3 years.

Strategy

In order to identify and project the strategy of delivery, it is most appropriate to use

the Ansoff matrix. It facilitates in understanding the options that are available for the

company, i.e. Marks and Spencer as per the market and product it is associated with to

develop a strategy.
 Marks & Spencer 8

ANSOFF Matrix

Market Penetration Product Development

 Development of innovative  Technological development and
products advancement
 Emphasis on retail in UK  Brand-specific development
Market Development Diversification
 Opening new franchise  New products in Home
 Hiring new employees  New products in beauty and skin care
 Exploring new territories  New products in food
 Increasing new segments  Products for youth

Segmentation, targeting and positioning (STP)

Segmentation

The segmentation of M&S is mostly based on the clothing product it offers for both

the genders, where the business and casual perspectives are considered the most.

Target Market

Each and every individual, who love to dress up smartly, are targeted by the company

irrespective of their age. Currently youth is more inclined towards fashionable clothing

(Rajput et al. 2012); therefore it benefits the profits and sales of the company.

Positioning

Marks and Spencer is securely positioned amongst the top most brands in the given

region. It is stable and has a competitive advantage of being a big brand, intense marketing

and large scale at economies (Martinuzzi et al., 2011).

Tactics/Action

Place

Marks and Spencer has many stores across the globe, which are easily accessible to its

consumers. Also, it has marked a virtual place, i.e. its website to provide convenience of

home to their customers.

 Marks & Spencer 9

Product

Most of the products offered by the company are based on the needs and requirements

of consumers. It is best known for clothing if offers for women, and also for the clothing

product it offers for middle-aged people.

Promotion

The company promotes its product through advertisement on its website and

television. While food items are promoted through the display of banners of large size in

stores.

Pricing

The products offered by Marks and Spencer have a diversified range; some of the

items are affordable in price, while the other clothing item are of premium quality and

expensive.

Physical evidence

Even though the company has many stores, it has launched a website that serves a

uniform platform to mark its presence in the market.

Process

Marks and Spencer believes in increased efficiency of process through its transparent

management, which further enhances the experience of customers thus providing greater

control over the system or process.

 Marks & Spencer 10

People

Marks and Spencer has been reported to be a good employer, which takes care of its

employees so that they feel satisfied and valued. Also, it provides them with high quality

training and career opportunities.

As per the extended marketing mix of Marks and Spencer evaluated above, the most

appropriate method of marketing plan would be conducting it through the activity of CSR. It

can enter into initiatives that concerns the ethics and morals of corporate business that would

not only benefit the society but also its employees. It can spread awareness through different

advertising method for donating old stuff, such as clothes to charity.

Budget

Budget chart is attached in the appendices section.

Control

Marks and Spencer can control its staff in order to achieve the objectives of the

company (Karmer, 2011). The most effective form of control would require managers to

identify the performance and progress of the company and adjust workforce accordingly. The

key indicators in the above mentioned plan would include market share, consumer approach

and effective marketing.

Conclusion

The company sustained its financial crisis by holding on to its brand image and

premium pricing; and focused on making investments in advertising and marketing. Even

though it indicated a decline in its sales in 2008; however, these were improved from the year

later than that while all the other retailers were compelled to hold discount pricing strategies
 Marks & Spencer 11

(Thompson and Martin, 2010). The factors that contribute in the brand positioning of M&S

includes business commitments in regards with environment, social and ethical values. It has

dedicatedly worked in the favour of community care, waste reduction, and responsible

sourcing (Marks & Spencer, 2016).

 Marks & Spencer 12

Task 2

Communication Plan

Promotional mix refers to the collaboration of different factors that contributes to the

delivery of a specific message. These factors include sales promotion, personal selling, public

relations, and advertising (Kotler, 2015). All of these elements are used to spread awareness

or to communicate with the large target market, in order to attract them towards a specific

goals or to achieve profits and organizational success (Sceulovs & Sarkane, 2010).

Target Audience

The target audience selected for this particular market plan is men and women of

middle-aged group. These are the individual who aspire for latest trend and fashion; and tend

to change their wardrobe collection every season. They belong to elite class who can afford

new clothes every season. Also they are the ones who love to follow fashion and are

extremely brand conscious. They have high preferences towards premium quality products

and would not settle for anything cheaper or of lesser quality. They will never opt for any

substitute product and are brand loyal.

Channel

The most appropriate channel to market and communicate with the aforementioned

target audience is through street banners, and social media. Along with the rise of

technological advancement, social media is most widely used channel across the globe

(Castronovo & Huang, 2012). Almost everyone has the access to the internet. Also the nature

of social media addresses large population with lesser efforts. The entire campaign will have

a follow-up which would not just include a series of messages on social networking site, but

the similar content will be projected through banners on the streets.

 Marks & Spencer 13

Message

The message of this marketing plan is to donate the old clothes to charity or to the

people who need them. Since the elite class consumer of M&S can afford new clothes every

season, they tend to throw away their old clothes. This campaign would encourage them to

donate their old clothes to the poor people through a system organized by the company. Not

only will it benefit the society, but will improve the image of the company in regards with

ethics, morals and CSR.

Poster

Attached at the end of the report

Feedback

Individuals are expected to have a positive response, as this is a campaign that would

benefit the society and its people more than it is benefiting the company. Also, if the response

is better than expected, then it means that the company will be able to help the poor people

more.
 Marks & Spencer 14

References

Castronovo, C. and Huang, L., 2012. Social media in an alternative marketing

communication model. Journal of Marketing Development and Competitiveness, 6(1),

p.117. Data retrieved from [Link]

[Link]/jmdc/castronovoc_web6_1_.pdf

Davey, J. 2016. M&S reports worst clothing sales fall for a decade. Retrieved from

[Link]

European Commission. 2011. M&S aims to become world's most sustainable retailer.

Retrieved from [Link]

fundings/united-kingdom/488_en.htm

Jacobs, G., van Witteloostuijn, A. and Christe-Zeyse, J., 2013. A theoretical framework of

organizational change. Journal of Organizational Change Management, 26(5), pp.772-

792. Data retrieved from

[Link]

retical_framework_of_organizational_change/links/[Link]

Joy, A., Sherry Jr, J.F., Venkatesh, A., Wang, J. and Chan, R., 2012. Fast fashion,

sustainability, and the ethical appeal of luxury brands. Fashion Theory, 16(3), pp.273-

295. Data retrieved from

[Link]

Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson

Higher Education AU. Data retrieved from

[Link]

inks/[Link]
 Marks & Spencer 15

Kramer, M.R., 2011. Creating shared value. Harvard business review,89(1/2), pp.62-77. Data

retrieved from [Link]

rcbg/fellows/N_Lovegrove_Study_Group/Session_1/Michael_Porter_Creating_Share

d_Value.pdf

Makos,J. 2014. Analyse PESTEL for Monitoring your Business or Organization. Retrieved

from Pestleanalysis: [Link]

Marks & Spencer. 2015. Annual Report and Financial Statements. London: Marks & Spencer.

Marks & Spencer. 2015. Think Innovation: How we’re encouraging innovation across M&S’.

Data retrieved from h[Link]

innovation-how-we%E2%80%99re-encouraging-innovation-across-mands

%E2%80%99

Marks & Spencer. 2016. Annual Report and Financial Statements. London: Marks & Spencer.

Martinuzzi, A., Kudlak, R., Faber, C. and Wiman, A., 2011. CSR activities and impacts of the

retail sector. Data retrieved from

[Link]

Porter, M.E., 2011. Competitive advantage of nations: creating and sustaining superior

performance. Simon and Schuster. Data retrieved from

[Link]

Rajput, N., Kesharwani, S. and Khanna, A., 2012. Consumers' attitude towards branded

apparels: gender perspective. International Journal of Marketing Studies, 4(2), p.111.

Data retrieved from

[Link]

Reuters. 2016. Here’s how the Brexit Referendum is affecting the UK economy so far. Data

retrieved from [Link]

 Marks & Spencer 16

Ruddick, G. 2013. Should M&S give up on clothes and focus on food? Data retrieved from

[Link]

[Link]

Ruddick, G. 2016. Welcome to the M&S merry-go-round. Retrieved from

[Link]

round

Sceulovs, D. and Gaile-Sarkane, E., 2010. Electronic tools for company’s presence,

identification and marketing in e-environment: theory and practice. Economics and

Management, 15, pp.775-782. Data retrieved from

[Link]

TRONIC_TOOLS_FOR_COMPANY'S_PRESENCE_IDENTIFICATION_AND_M

ARKETING_IN_E-

ENVIRONMENT_THEORY_AND_PRACTICE/links/55e04e0308ae2fac471aacb6.p

df

Spencer, J. 2015. Business Strategy: Managing Uncertainty, Opportunity and Enterprise.

Oxford. Oxford University Press.

Thompson, J.L. and Martin, F., 2010. Strategic management: awareness & change. Cengage

Learning EMEA. Data retrieved from [Link]

isbn=1408018071

Tungate, M., 2008. Fashion brands: branding style from Armani to Zara. Kogan Page

Publishers. Data retrieved from

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%20Brands%20by%20Mark%20Tungate%[Link]?sequence=1
 Marks & Spencer 17

Vizard, S. 2015. Marks & Spencer brand perceptions on the rise as it is rated one of the UK’s

top brands. Retrieved from [Link]

spencer-brand-perceptions-on-the-rise-as-it-is-rated-one-of-the-uks-top-brands/
 Marks & Spencer 18

Appendices
Budget
 Marks & Spencer 19

Poster

LOGO

d
DONATE CLOTHES

Do Not Dump Your Old Clothes

There Are People Who Need It More Than Your
Closet Do

To make donations, contact 0123456789 or send us your

address at donations@m&[Link] and we will pick them
from your house.