Marks and Spencer’s Marketing Strategy Report

Introduction

Marks and Spencer’s is a retailer that is British based and it has more than 760 stores globally. The company is seen as one of the most symbolic since it has widely recognized chain stores and it is also one of the largest clothing retailers in Britain. On the other hand Marks and Spencer’s is a multibillion-pound food retailer in Britain and most of its shops sell both clothing and food items. Similarly, the company has another line of business dealing with homewares such as furniture and another household item. The company is rapidly growing and increasing its profitability and this could be highly accredited to the strategic marketing techniques employed by the company in its domestic as well as international marketing (Barlon, 2006).

How the organization develops its marketing strategy

For Marks and Spencer’s company to develop its marketing strategies appropriately it first and foremost researches so that it can understand its market position in the industry before making any decisions on its prospects. Similarly, the company sets out its marketing objectives and the strategies that it will use to achieve its set objectives. This is then completed by carrying out a marketing audit of the company which will give a proper analysis on the following;

1. A very detailed analysis of the company identifying its strengths, weaknesses, threats, and also opportunities (Bell, 1980).
2. A detailed analysis of the company’s industry in which the company operates including the company’s competitors as well as the needs of the consumers.

The marketing strategy of the Marks and Spencer’s company is the marketing logic by which the company hopes to highly achieve its set marketing objectives. Marks and Spencer’s develops its marketing strategies by adapting to several concepts first and foremost the organization devises the goals and objectives which are to be achieved by the marketing strategy. The organization thus devises its marketing mix in terms of its products, prices, promotion as well as the place or the distribution strategy (Bitner and Booms, 1981).

Marks and Spencer’s product strategy

First and foremost the company ensures that its products are offered to the customers and several issues are evaluated before the release of the product to the consumers. The company ensures that it fully understands its products from the views of its customers internationally. In the product description of the Marks and Spencer’s Company, the company can clearly state why their products are perfect for their international customers as well as what their products would do best as compared to the other products in the market. The company’s products are more descriptive and this helps in attracting more customers globally (Borden, 1978).

On the other hand, the company pays a lot of attention to the functionalities, the features, and also the benefits of its products in its international arena. The company has strategies that allow it to properly position its product in the international markets. This is effectively done by the company’s prioritization in the international target market to determine the development of the product’s progress. Marks and Spencer’s company also gives a lot of emphasis on its product adaptability such that by understanding the adaptability of its products the company can thus incorporate the necessary elements into its international marketing mix. The Marks and Spencer’s Company uses the following factors in measuring the adaptability of its products.

• The company considers the relative advantage of the product.
• The company considers the compatibility of its products in both the domestic and the international markets.
• The company considers the complexity of its products in the domestic and international markets.
• The company considers the divisibility of its products such as the trial portions of the products which can be purchased (Braun and Robert 1989)
• The company considers the communicability of the products as it looks at how its products appear in public places where they are easily seen and also studied by potential users (Berry, 1994).

Marks and Spencer’s price strategy

Marks and Spencer’s Company has also adapted some international and domestic pricing strategies which have eased the international and domestic pricing difficulties. It puts into considerations factors such as the fixed and the variable costs, the company’s objectives, the competition, the proposed company’s positioning strategies as well as the target group and the willingness of the consumers to pay for the products. Similarly, the company in the international and domestic pricing strategies makes considerations on the cost of transportation and it also looks into the import duties or even tariffs that could be levied on its products as they are sold on an international and domestic scale (Dale. 2006).

On the other hand, the company makes considerations on the incomes of the international as well as the domestic customers and also the economic situations of the domestic and international countries as well as their influence on the pricing process of the company’s products. The company then adapts to using the internet as a tool for its pricing procedures as this makes it to become more transparent for international consumers. Similarly, the company’s goods can also be purchased online by several international organizations at very fair prices.

This is anticipated to further give the company a competitive advantage over its competitors thus tightening the competition in the international and domestic markets. In the domestic marketing mix and the international marketing mix, the company does put a lot of emphasis on pricing its products since it only focuses on both the international and the domestic customers. In the company’s international aspect it has to make major considerations in the pricing of its products since it covers a very huge market segment (Culliton, 1948).

Marks and Spencer’s promotion strategy

The company Marks and Spencer’s then adapts to a domestic and an international promotion strategy which helps best in meeting the demand of the consumers. The company highly emphasizes advertising its products globally and its strategies to achieve their advertising goals ensure that the issues of the language barriers are well taken care of. Similarly, the company in its international and domestic promotion strategies ensures that its advertising messages are not offensive in any way especially to the residents of the other countries (Fletcher & Brown, 2005).

In its international promotional strategies Marks and Spencer’s Company takes a lot of concern in the level of the media development both locally and internationally. The company further adapts a strategy of adopting its advertising messages to the domestic as well as international markets so that it can successfully meet the demands of the consumers. On the other hand in the domestic marketing mix, the company adapts to the domestic promotional strategies and this does not have to lay a lot of emphasis on the language barriers as in the case of the international marketing promotional strategies (Nagel, 2002).

Marks and Spencer’s distribution or place strategy

Marks and Spencer’s Company devises several international and domestic distribution strategies in the local and global markets. This ensures that the company’s products swiftly move from the manufacturers to the wholesalers to the retailers and they finally get to the consumers. The company puts into consideration the many other intermediaries that are involved in the distribution process of the company’s products in the international markets.

Marks and Spencer’s Company also adapts to using the internet as a very effective distribution channel thus allowing the company to make more sales from the consumers who use the internet most often. In its international marketing mix Marks and Spencer’s Company identifies its international markets so that it can know the existing potential customers who are selected for marketing. Emphasis is laid on the target market so that the company can be able to segment its market as well as have the ability to determine the existing different markets for the various segments (Kotare and Helena, 2004).

Marks and Spencer’s market research strategy

The company carries out extensive market research so that it can properly position itself in the marketplace.

The principles and processes that are involved in the development of the company’s marketing strategies:

• Setting the marketing goals and objectives

The Marks and Spencer company, first of all, sets its aims and goals in its marketing field. The goals and objectives clearly state the anticipated increases in the company’s sales revenue and it also states the percentage at which the sales revenue is also expected. In setting the goals and objectives the company seeks to improve its sales both locally and also internationally and it also looks forward to making use of the seasonal sales opportunities. This allows the company to save on its costs as well as reduce its budget in the sales of the company’s products (Lee and Carter, 2005).

The company ensures that its goals are specific, measurable, achievable, and relevant, and also time-bound. The company’s marketing objectives mainly focus on the size of the company in terms of its sales or its market share. On the other hand, the marketing objectives look into the company’s market positioning in terms of targeting very specific segments of the new or even the existing markets. (Steven 2002)

Similarly, the objectives also focus on the company’s product range development as well as the product innovation of the company. The objectives also cover the company’s survival in the industry as well as its brand loyalty.

• Reviewing the strategies

The company’s marketing strategies will then be reviewed and if need be any adjustments are made as per the company’s recommendations.

• Resource requirements for the marketing strategy

The company then lays down the resource requirements which are needed for the implementation of the company’s marketing strategy. This could be in form of the financial resources as well as the manpower needed to achieve the goals of the marketing strategy. (O’Cass and McEwen 2004)

• Development of the marketing strategy

In developing and formulating the company’s marketing strategies The Marks and Spencer’s company makes considerations of the marketing mix in terms of the product, price promotion, and the distribution of the company’s goods. This is achieved in the following ways.

The tools and techniques used in producing the company’s strategic marketing plan

• E-marketing

The company has resolved to use the internet as an effective marketing tool for all its products. Thus more of the company’s products are made available online through the company’s web that is in partnership with one of the largest global online retailers known as Amazon. This has further led the company to double its sales online thus achieving the company’s strategic marketing plan. The company turned to the use of the web to revive its fortunes and this has further made it have higher pre-tax profits. The internet tool has helped the country develop a closer relationship with its customers both locally and also internationally. This tool has further allowed the company to offer a wider range of products to its customers (Moore, 2001).

• New store format

The company has adopted a strategy whereby it has designed a new format for its stores. These new store format has won a lot of praise globally in the process of rolling them out across all the Marks and Spencer’s company stores most of which will be completed in the coming year. The company’s new look conversion is a very radical alternative to the store’s design. On the other hand, several of the company’s stores have received a refit as a temporary update of the store’s interiors (George, 1994).

• The self check out tills

The company in its marketing strategies has introduced a self check out tills in all its flagship stores following its successful initial three-store trial. The self-check-out tills allow the company’s customers to scan their goods, as well as pay for their purchased goods by using either credit cards or even cash without the assistance of a cashier. The company positions one of the members of staff on hand throughout so that they can offer help to the consumers and also authorize the sale of the age-restricted items.

• New products brands

The company has used this tool for its marketing strategy and by introducing new products in the market it has attracted more buyers to its stores. Similarly, the company has dropped the tradition of only selling its brand and it has since slipped into using some designer names. For instance, it uses the names of popular British designers such as Paul Smith and other well-known designers. (Michael 1996)

• Marketing campaign

The company has launched several marketing campaigns and it has made this achievement by employing some branding consultants and also setting up a marketing department that will look into the organizations marketing aspects. The marketing campaigns pioneered by the company’s marketing department have helped the company improve its position in the competitive environment. On the other hand, the marketing campaigns as a strategic marketing tool provide the customers with better information thus they can make informed choices in their buying decisions. (Chokeman and Don, 2005).

Similarly through these marketing campaigns the company a more proactive communication to its customers and it also gives the company a base of presenting their products clearly with very clear customer targeting.

• Market mix

Marks and Spencer’s Company has launched so many of its products into the foreign markets so that it can adapt to the marketing mix to the foreign markets. The company has had strategies that aim at meeting the needs of the consumers both locally and internationally. However in the international markets Marks and Spencer’s Company adapts various strategies which take into account the cultural backgrounds of the consumers, the consumer’s buying habits, and also the consumer’s levels of their disposable income. This enables the company to further deliver a well-tailored program for its marketing mix globally to suit the needs of the consumers. (Boyd 2006)

Unlike its domestic marketing mix Marks and Spencer’s Company which is a global player adapts the product as well as the marketing mix strategy to meet the needs of the global customers. The standardization strategy for this company helps it in reducing its costs and this is because it thinks global thus helping it in establishing itself in the foreign markets. On the other hand, the domestic marketing mix of the company focuses on strategies that would help in meeting the needs of the local and also regional consumers. This does not require a lot input as it does in the international markets. Similarly, the company gets a lot of profits from the international markets in comparison to the domestic markets thus it should strategically position itself to attract more consumers in the international segment. (Brian 2005)

• Positioning

In the international marketing mix of the Marks and Spencer’s Company, its positioning is virtually important since it enables the company to position itself well in the international markets thus making the company very unique which is considered as a benefit to the company’s target markets. The company studies well its marketing environment and also its competitive advantage so that it strategically positions itself in the existing international markets (Whitely, 2000).

Marks and Spencer’s company similarly has a first-mover advantage in the international markets. Marks and Spencer’s Company has employed the following positioning strategies; the product attributes, the benefits of the products, the usage occasions of the products, the users of the products, the products classes, away and also against the company’s competitors. On the other hand, the company ensures that the differences in its products are also promoted and they should be important, superior distinctive, communicable, profitable, and also pre-emptive. The company also needs to take several marketing positioning measures to beat its competitors by undertaking the following measures.

Pricing and terms of access- There are many ways by which the company can use the price of its product domestically as well as globally. A price matrix will be suitable since it will incorporate factors such as demand, supply, and also quality. The price mix will be suitable when considering the right pricing strategy to utilize (Brown, 1993).

Product adoption strategy- making modifications to an existing product and raising its price

Availability and security strategy- countering perceived risks by overcoming transport risks and other costs than making a suitable price for the product (Beckman 1991)

Technical strategy- demonstration of superior products, In this case, issues such as shortening life cycles for manufacturing equipment will be considered and technical advice was given to the customers accordingly since they might complain of high prices

Total adaptation and management strategy-it guides the company’s organizational and technical portfolios especially the development of new products for low earning persons who want to enjoy the drinks. (Brown 1998)

Conformity strategy– strategizing on how legal matters, tariffs and legislation for the business will be handled without hitches such as encountering losses

Penetration pricing- In this pricing strategy, the price for Marks and Spencer’s products can be set to be lower than what it is in other countries to gain a market share. It includes a low price strategy that enables a penetration price which is necessary to allow more products to sell at first but when it catches up, other pricing strategies are adopted.

Low pricing- The supermarket chain can lower its prices to improve its sales. To implement this, the company will start to offer its products at low prices. Low pricing products consist of products that are provided at the lowest price to the customers. The prices are lower than those of the competitors.

• Place

The Marks and Spencer’s company has various distribution channels to make their products reach global consumers. These distribution channels perform the following functions; informing, promoting, contacting, matching, negotiating, physically distributing, risk-taking, and also financing.

• Price

The Marks and Spencer’s company has adapted the following pricing strategies in its international marketing mix; the product line, the company’s optional products, the company’s by-product, the company’s products bundle, and the company’s captive products.

• Promotion

In promoting its products the company ensures that the consumers are aware of the products themselves where they can finally purchase them for their personal use.

Marks and Spencer’s company emphasizes its international marketing mix in the promotion, pricing, placing, and positioning of its products. This is because in the international markets the company has a wider coverage of its consumers unlike in the domestic market mix where the coverage of the consumers is limited. (Bridge 1998)

Option generation and evaluation in the development of the company’s strategic marketing plan

A strategic marketing plan for marks and Spencer’s

The company’s strategic plan is based on an understanding of the company’s market orientation. For the company to understand its market orientation in the industry it has devised ways of dominating the market in its industry. The company will combine its value-driven operating models as well as the prepositions to dominating its markets. On the other hand, the company will concentrate on offering products that will push its performance limits. The company’s proposition to its customers will be offering its best products at the right times. Similarly, the company will not only build its dominant market position with simply one invention but it will continue to innovate new products cycles time after time.

The company will also ensure that the competition in the marketplace will not be about the company’s products but will be based on the company’s product performance. The company will also pursue operational excellence such that it will cultivate a deep relationship with its consumers. To achieve this goal the company will major on providing products that are in the middle of the market at the best prices possible with the most convenience for the consumers. The company’s proposition to the customers will be very simple and this is providing them with low prices as well as hassle-free services. (Boyle 1999). The company’s strategic marketing plan will also entail customer intimacy whereby it will focus on delivering what the consumers want rather than what the market wants.

This means that it will specialize in satisfying the needs of the consumers on the virtue of their close relationship as well as the intimate knowledge the company will have on the consumer’s needs. By the Marks and Spencer’s company practicing customer intimacy it will further achieve higher success in the competitive market. The company’s strategic marketing plan consists of the following things;

• Product– this covers the aspects of marketing the company’s products and it covers the various specifications of the company’s actual products. It also looks into how the consumer’s needs are met by the use of the products offered by the company. Furthermore, the product’s scope in general includes the supporting elements which are guarantees, warranties as well as support. The company looks at the scope of its products and this includes the range of the number in the product line as well as the number of the company’s product items in a product line. (Burns 2007)
• Pricing – this covers the product’s price-setting processes and they are inclusive of the discounts which are offered by the company to the consumers. The company’s prices for all its products however need to be in a monetary form such that it could easily be exchanged in terms of the time and energy spent on producing the product. Similarly, the company pricing value is determined by the utility of the product to the consumers in monetary terms. The company’s pricing objectives give a definite volume of sales, the profits to be achieved, the market share of the larger markets, the maintenance of the company’s market share, eliminating the competition as well as the satisfactory return on the company’s capital.
• Promotion- this is inclusive of activities such as sales promotions, advertisements, personal selling as well as publicity and it also refers to the various methods which are used by the company in the promotion of its products and brands. Burns (2007)
• Place or distribution– this refers to the channels which are used for the company’s products to reach the consumers. The Marks and Spencer’s company has several points of n sales or retailing for its products globally. It also covers the geographical aspect of the company’s chain stores location or industry as well as the market segmentation.

Summary

Marketing is an important aspect for the Marks and Spencer’s company in its industry which has cut-throat competition being observed in the markets. The company has to come up with marketing strategies so that it can maintain its market share. Currently, the consumers in both the local and international settings have become more informed and they require more information on buying their goods and products from various companies in the industry. Creativity in marketing is very important and necessary; it enables the company to come up with appropriate marketing techniques that are relevant to the market. It also makes the company save on costs and at the same time helps the company to achieve its objectives.

Marks and Spencer’s company has been able to get at the top by producing quality products, high technology, and changes in marketing concepts. The company has been able to satisfy the needs of the customers. The company has also undertaken various strategies through the marketing of its products and this has enabled it to capture a wider segment of the market. Marks and Spencer’s company marketing technique of concentrating on customer orientation to satisfy its customer has been successful. However, marketing is a continuous process, and for the company to maintain its market share it has to continue marketing strongly in the domestic and international markets. (Carter 2000)

Recommendations

The company should involve a lot of creativity in its marketing strategies to attract more of its customers to purchase the company’s products.

The company should also strongly capitalize on its local and international advertisements as well as branding to reach a wider scope of consumers in the market.

The company should have its strategies mainly focus on the international markets since this is where many of the company’s profits are derived.

The company should also do thorough market research before formulating any of its strategic marketing tools.

The company should not only concentrate on acquiring more customers but should also focus on maintaining or retaining the already existing customers in both the local and international markets.

The company should major in advertising its products so that it can further maintain the demand for its products and also introduce the new and unknown products invented by the company. Similarly, it will increase the demand for its well-known goods to the existing and also new customers.

References

1. Barlon, K. (2006): The concept of the marketing mix Presentation on marketing management, Vol. 1, Oulu University -Finland
2. Bell, D. (1980): Defining the Business: The Starting Point of Strategic Planning; Prentice-Hall,
3. Bitner, J. and Booms, B. (1981): Marketing strategies and organizational structures for service firms, in Donnelly, J. and George, W. Marketing, American Marketing Association, Chicago.
4. Borden, N. (1978): The Concept of the management; Journal of Advertising Research, June, Vol. 2, pp. 20-15.
5. Borden, N. H. (1964): The Concept of the Marketing Mix, Journal of Advertising Research, Vol. 4.
6. Berry, C. J. (1994): The Idea of Luxury: A Conceptual and Historical Investigation. New York: Cambridge University Press.
7. Braun, O. L. and Robert A. W. (1989): Psychological Antecedents of Conspicuous Consumption; Journal of Economic Psychology, 10 (2)
8. Culliton, J. (1948): The Management of Marketing Costs; Graduate School of Business Administration, Boston, Mass: Harvard University.
9. Dale, M. (2006): The Art of Marketing: Developing Management Skills, Vol. 3, Crest Publishing House, New Delhi
10. Fletcher, R & Brown, L. (2005): International marketing: an Asia-Pacific perspective, 3^rd edition, Pearson prentice hall, Frenchs Forest
11. Nagel, T. (2002): The Strategy and Tactics of Pricing; Prentice Hall; Upper Saddle River, NJ.
12. Kotare K and Helena M., (2004): Global Marketing Management, 3rd Edition, New York, John Wiley and Sons
13. Lee, K and Carter, S., (2005), Global Marketing: Changes, New Challenges and Strategies. 1^st Edition, Oxford Press
14. O’Cass, A. and McEwen, H (2004): Exploring Consumer Status and Conspicuous Consumption; Journal of Consumer Behaviour, 4(1):
15. Steven, T. (2002): International market segmentation: issues and perspectives on global management approaches, Intern. J. of Market Research, vol. 10
16. George T. (1994): The Concept of the Marketing Mix. The Journal of Advertising Research, pp. 2-7
17. Moore, I. (2001): High Intensity Marketing. SA Press
18. Michael V. (1996): Marketing Management, Strategies and Programs. McGraw Hill publishers Irwin,
19. Chokeman S and Don E (2005): In the Mix, A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century. Marketing Management journal v.14 n.1
20. Boyd J. (2006): Swarming the shelves, how shops can exploit people’s herd mentality to increase sales. The Economist, 2006, p. 90.
21. Brian W. (2005): Marketing Nutrition, Soy, Functional Foods, Biotechnology, and Obesity (2005), Champaign, IL: University of Illinois Press
22. Whitely, R. (2000): The Customer Driven Company, Moving From Talk to Action. Published by Pfeiffer & Company,
23. Brown, S. (1993): Post-modern Marketing. European Journal of Marketing Vol. 27 No. 4, pp. 19-34
24. Brown, S. (1998): Post-Modern Marketing. European Journal of Marketing, Thomson Business Press, volume 77 no 8
25. Beckman, B. (1991): marketing strategies for the multinational corporations. Houghton Mifflin
26. Bridge, S. (1998): Understanding the marketing strategies for the large scale businesses. Macmillan
27. Boyle, D. (1999): The marketing mix. London; HarperCollins
28. Burns, P. (2007): Marketing strategies. London, Palgrave
29. Carter S. (2000): Internet as an effective marketing tool in the multinational corporations. Pearson Education Ltd; Harlow