MARKS AND SPENCER

International Marketing of Marks and Spencer

International marketing plan for Marks & Spencer

Introduction

As a marketing consultant for Marks & Spencer PLC, upon the firm's request, the situation analysis is presented. The analysis includes SWOT analysis, pest analysis, country and customer analysis. The paper provides a brief introduction of the company. Then it further discusses on Porter's five force model; followed by PEST analysis and SWOT analysis. The paper ends with the conclusion and recommendation on Marks & Spencer (Bevan, 2002).

Marks and Spencer

M&S or formerly known as Marks & Spencer Plc is retailer based in united kingdom, which has more than 700 retail outlets locations across thirty four countries where the group sells almost everything from clothing to foods under the name and trademark of St. Michael in another 300 outlets in the U.K. Since inception the company's main aim has been to offer consumers quality, value, and service. The company primarily relied on operating principles to achieve its mission such as to developing long-term relationships with their suppliers, provide their customers value through a narrow merchandise selection at affordable prices and support local industry. Almost 50 percent of the company's outlets in the foreign markets are franchised to the local members of the company (Bevan, 2002).

This group also owns the apparel wear stores under the name of Brooks Brothers and super markets under the name of Kings Super Markets chain in the US. Moreover, another aspect of the company Direct mail which helps the company meet their main objective of providing customers with an easier access to their products also the company provides financial services, which comprise of operations of the groups also provide risk management services, life assurance and pensions to the people. M&S as a company has always been known to have a great management support that contributed to its growth. Previously, the company's managers failed to comply on their decisions, leading the group to lower sales and profits. Also, the prices per share dropped which affected the shareholders insecurity.

Porters Five Forces Model

This model was developed by Michael E. Porter in 1980. He identified 5 forces that shape every industry and determine its attractiveness and potential profitability. Porters 5 Forces analysis for M&S is given below

Bargaining Power of Buyers

In general, bargaining power of buyers is high. It very much depends on the segment we target. Buyers´ power is lower in the elite segment (i.e. cloths from luxury designer firms) and higher in other segments, as they can usually choose from a variety of companies. M&S gained customer loyalty from high quality products that were priced competitively. One of M&S´ current problems is that people demand either brand names or discounted products. M&S is therefore, stuck in the middle. M&S´ product-orientated strategy in the late 1990s has become ineffective. The bargaining power from buyers is increasing and therefore, a more consumer-orientated strategy is needed.

The Bargaining Power of Suppliers

M&S´ success has a lot to do with its long-term relationships with its ...