MARKETING CONCEPTS & PLANNING FOR MARKS & SPENCER

Marketing Concepts & Planning for Marks & Spencer

Marketing Concepts & Planning for Marks & Spencer

Analysis of Marks & Spencer

One of the big organisations in the retail business is Marks and Spencer (M&S). It is one of the UK's leading retailers of clothing, foods, home ware and financial services, serving 10 million customers a week on over 300 UK stores. M&S is headquartered in London, UK.

M&S has been through a lot and faced a lot of struggles. Troubled in recent years and suffering from slipping market share, the company had divested itself of non-core and overseas interests and had begun to show signs of improvement. By understanding M&S's strategic position, it will help to understand their marketing plan as they are directly connected to each other (Brassington, 2006). It is best to start by analysing; SWOT and PEST analysis as a way of the strategic capability of an organisation. Second, an external analysis will be recognised.

Subsequent, for organisation to succeed a Marketing Communication strategy has to be planned and several recommendation and solutions will be suggested for M&S. All of that will be introduced and analysed through out the report.

PEST Analysis

PEST is a mnemonic for political, economic, social and technological factors. It is the most frequently used tool to analyse the impact of the general enviroment upon an organisation (Dibb, 2006).

Political

British political system offers stability and encourages capitalism. Current legislation and market regulations favour M&S's operations.

Economic

The consumption of most goods is likely to increase when the economy is booming and it tends to decline during recessionary periods (Bevan, 2001). After the recession of the early 1990s, the UK and many other countries entered a period of sustained economic growth and high levels of consumer expenditure.

Social

The requirements of consumers are changeable. For example, the clothing market is particularly sensitive to fashion trends. Lifestyle can also have a significant influence on our eating habbits (i.e. Organic food, ready-to-cook meals...etc.). Understanding these requirements is crucial, if M&S wants to remain competitive and increase its market share (Wood, 2004).

Technological

A substantial investment in technology is necessary to operate efficiently in a competitive market. Modern IT systems can improve productivity and lower the costs (e.g. the use of computer systems has unabled firms to automate and accelerate their buying procedures and reduce the supply cycle for all merchandise) Furthermore, customers are increasingly making use of the Internet and firms have to be prepared to offer online services for their home shopping.

SWOT Analysis

Strengths

Marks and Spencer as a highborn company, which has established on a solid ground on the early thirties has strong internal resources. The relationship with suppliers was designed to ensure high and consistent quality. (Johnson, 2002).

M&S main strength is quality; it is 100% own brand, which is offering it to the customers at reasonable prices under the brand name St Michael. M&S has been in the business for over a hundred years and therefore built and reputation for good service and value. It does not stop at here; they build ...