Summary of economic factors

Need to make a project on the Marks and spencer. Which is an retail store of uk.

You will be assessed on your ability to:

1. Within a potential future economic scenario, critically evaluate the company’s strategies for sustainable competitive advantage, segmentation (including targeting and  positioning) and branding

2. Using the same future economic scenario, critically evaluate the potential impact of the company’s strategies on customer behaviour

3. Identify and critically assess opportunities for growth within the organisation’s MACRO environments

4. Make clear links to the marketing theory that underpins your work

5. Write a logical, well-presented and accurately referenced piece of work

As per the economic factors, Marks and Spencer was of the view that the company should not decrease its prices during or at the time of seasonal festivals such as Christmas. It is important and relevant that this strategy was effective and consumers know that they could not only grasp the retail products offered by Marks and Spencer at low cost but also get offers and discounts from the company. Thus, Marks and Spencer did not focused into consideration in the public level goals and strategies. 

The economic recession in the year 2009 set the economy struggling for growth and development but it also has focused on dealing with them successfully. Thus, consumers are optimistic and the operations of the company are booming. UK is the major hub of e-commerce where customers are not stuck to local retailers but also to the external tourists that develops the business in a diverse trend.

Currently the company is very uncertain and it increasingly impacts the sales of the retail if people do not have sufficient amount to purchase the products. Marks and Spencer recently launched the 20% of wine to keep up with the competitors. This had to change the market at the time of recession.

Marketing strategies help to achieve the long term strategies for the organization with respect to the resources in the challenging environment. It needs to meet the requirements of the organization. (Baker & Hart, 2007)

The company enables market development strategy that helps to enhance the global presence. It has huge potential for the sales of the company. It can meet with financial results. With the help of competitive advantage, Marks and Spencer pursue product development strategy that needs to develop products with respect to cultural aesthetics and its presence. (Beamish, 2008)

The company enables to enhance strong global presence and due to low cost structure, Marks and Spencer can focus on strong and positive financial goals. To achieve the long term success, Marks and Spencer needs to focus on continuous product development strategy. It should deal with proper rewards and recognitions of local patterns and trends which are vital. It cannot achieve the long term goal of competitiveness in the market. Thus, the company needs to focus on global strategy. It also sells a broad range of products. The company is mainly a retailer store in UK of clothing market. It avail new opportunities and create a competitive advantage from the assets and competencies of organization. (Bunston, 2008)

Competitive advantage and its sources

The company seeks to hire talented people in terms of employees. The competitive advantage and its sources such as cost, differentiation and strong workforce, effective knowledge management serves as a great asset to an organization. It seeks competitive advantage with cost and leadership strategies. Marks and Spencer come up with new strategies such as remain competitive and sustainable. Competitive advantage can be achieved with strong offerings and high values to customers. It is increased through higher values to customers and it justifies high pricing. The major key asset is its employees and the company face challenges in terms of finding the best from its people.

Marks and Spencer use the source of competitive edge as its employees and it has strong reputation that concentrates on customer services. Competent and talented employees use their talents and knowledge to survive with the company. The human resource department in the company seeks to attain the competitive edge by strategic deployment of strongly committed people. It can use their skills to meet structural, cultural and personnel tools and techniques. Some techniques such as equal opportunities of employment produces diverse work force and diversity increases skills and potential of the company that are needed in the era of globalization. (Doyle, 2008)

To retain the edge of competition, it is important to succeed in the work place. The diverse and talented employees in an organization help to lead the goals successfully. Effective resources of management enhance sustainability and takes decision making. This can be important to improve the excellence of business and it helps the business to be more proactive. It has direct association with relationship building. The company also develops effective knowledge management strategy to turn their ideas into innovative products and services. Social media provides cost effective marketing options and helps to communicate with the customers. (Kumar, 2001)

Targeting: Marks and Spencer specially targets the UK market. In UK market, the target is for 95% of the population within 30 minutes of line M&S store by the end of 2015. They will increase the “simply food stores” within the country and the customers need to fulfill the needs in the local area. (Desanto, 2010)

Market segment is the division of market into different group of customers with similar needs of product needs. It identifies the need and display proper responses to marketing actions. The purpose of market segmentation is to deal with the resources and it helps to meet the needs of customers. The concept of market segmentation is called as product differentiation. It helps to adapt the concept associated with product differentiation. Marks and Spencer targets especially the young people and meet the needs of the customer. They attract a younger female segment into their store and compete directly with respect to offerings and this may appeal to multiple market places. This is based on multiple applications of product and greater variability of customers. It also attempts to meet the needs of the customers. Different approaches of segmentation in marketing are important and the marketer considers essentially the same. (Hackley, 2009)

Segmentation, targeting, and positioning

Segmentation is the market division of people having likes / dislikes with respect to tastes and preferences. M&S determine the market and targets the market with the approach of different criteria such as the clothing line helps to explore the market in a better way with the help of demographic and geographic as well as psychographic profile. (Hallbauer, 2008)

Demographics: In clothing, women are targeted by the company M&S and the company satisfies the market segment of every age group. Usually the company targets the age group of women above 20 years of age. Teenage girls also look for colorful clothing as they are more conscious for their styles. Their tastes have changed due to role models and media has played a great role in changing their needs and demands as per the modern world. (Kumar, 2008)

Psychographic: The social class and personalities are same but there are different lifestyles. The buying behavior of consumers can be known through the transaction and it helps the marketers to provide better products for a targeted market.

Geographic segment: The major geographic segment includes 337 stores in 41 territories internationally. It segments the market geographically such as developing stores in territories and follows the approach of consistent packaging and it is easy for consumers for shopping. Climate will be rainfall, wind, humidity and the target customers of M&S change their patterns and trends as per the climate. The pattern of business deals with the season. (Lancaster & Withey, 2007)

Behavioral segmentation: The premium customers of Marks and Spencer are its regular customers. Customers come back to Marks and Spencer because they are satisfied with its clothing. Regular customers are important to remain profitable in the business because they have the power to pay more and gather more products. Loyal customers will help the company to increase the sales. With respect to the branded products, strong image could be maintained. Marks and Spencer gets full confidence and faith from customers with the emphasis on low cost strategy with high quality.

Positioning: Marks and Spencer has positioned itself as a premium brand in the supermarket industry. It offers the premium price for customers as customers have the willingness to pay a premium price for this brand and they set their prices with the approach of premium brand perception in the minds of the consumers. (Wheelen & Hunger, 2008)

Various forms of branding by Marks and Spencer include various mediums such as advertising and promotion. It should involve in heavy advertisements and different channels such as:

Television: This is the successful way to reach the target market and it should focus on dealing with strong viewership. The company could catch the eyes of consumers with the graphics and images as well as famous celebrities for proper recognition.

Print advertisements: Newspapers are the most popular forms of advertising. The company can focus on female magazines and it will help to deal with the middle upper class women who are interested in fashion.

Television based brochures and rate of circulation plays an important role. (Marks and Spencer group Plc, 2008)

The company developed the plan of brand strategy for three years that help to drive the multi-channel globe. It allows customers to use the catalogue, brochures and magazines. The company strongly positioned with respect to the improvement of operational delivery and it focuses on quality and value with regards to choice. It is based on communication strategy with respect to the long term commitment to quality. The TV campaign has been the major sense of scale and it has been committed to remain more sustainable that helped to reinforce the credentials. The company develops the brand equity and it maintained the price and advertising. (Donelly, 2015)

Marks and Spencer uses face book to involve their customers and they share recipes and expand as well as develop the multichannel strategy. The tagline ‘exclusively for everyone’ is used that has become the brand message for the company. Thus, advertising involves multiple uses of communication sources and people pay for the products and services of brand name. It influences customers with advertising. (MacDonald, 2011)

The concept of Marks and Spencer establishes as a reliable retail market across the world. It integrates to adopt new innovation and consumer preference and taste is the major concerns of marketing for the retail segment. It is dependent on primary survey and is designed on the basis of theoretical knowledge of consumer needs and preferences. It also offers an insight for the process of consumer preference.

The buying behavior of customers depends upon the relationship of individuals with respect to the marketing mix strategies. The income and the factors such as social cultural factors help to play a significant role on consumers buying behavior. It provides the outfit for every segment and there are variety of products with regards to different pricing and quality. (McElhatton, 2009)

Therefore, there is high awareness of brand and customers help the company to focus on the large base of global market.

The company is a leading fashion retailer in global market place. It targets multi-segment people and they have multiple outfits for every gender. The organization does not focus on narrow strategy of marketing. It provides economic cost as well as premium rate clothes. Marks and Spencer has a strong market share in ladies products and they targets people of medium as well as upper class people. Thus, the organization targets the consumers of all genders. Product positioning strategy has been implemented by the organization. It successfully helped to retain the old customers. They also have high quality to develop the large base of customers. (Morris, 2008)

People of every segment of middle and high level income are the target people of Marks and Spencer. It has adopted the change of trends and patterns of fashion industries in terms of mass segmentation. The customer of M&S looks for innovative products and latest designs as per the fashion in the market. Thus, the company changes the pattern and designs according to the taste and needs of consumer. For example: In case of summer, customers prefer cotton and short dresses, similarly, in case of winter, they prefer complete clothes in a woolen pattern. This way, their trend change and for casual wear, they prefer simple clothes, for festival occasion, they prefer ethnic pattern and company designs as per their requirements so that the customers can be happy and satisfied.

The customer is changing and the opportunity that came from the internet and changing behavior of customers, it brings strong revolution for M&S and other clothing retailers. (Newman & Cullen, 2002)

Social factors: Consumer’s tastes preferences and life style changes with time. It presents both the threats as well as opportunities. Consumers in the UK have ability of being loyal to one brand as per the quality of products. With the competitive rates, there are sudden changes when compared to the competitors. Consumers have huge preferences for styles and trends that present the strong market share for the company. This denotes that consumers in UK retail industry have high value of money. People live longer that means they can spend more during the lifetime. The major customers are aged people and young people. This way, it presents a strong opportunity for Marks and Spencer.

Technological factors: The internet has been the powerful and strong source of selling channels. It is assumed that online retail sales have increased and reached the position of revenues. M&S online sales also generated the goal to increase the revenues. The mobile phone shopping is taking off and there is a need of growth in the recent years. This comes with the clear goals and opportunities. (Sinkovics & Ghauri, 2009)

The company can take advantage of these factors and become competitive in the market place. With the changes in the consumer tastes, internet is used as an online shopping outlet and increases the scope of e-commerce. It improves flexibility and become competitive in the market. The company can gain market share with recent patterns and lifestyles.

Media plays a great role in communicating fashion and price comparison to the consumers. M&S needs to deal with the advanced technology and should introduce the products widely in the market such as online shopping facilities should be available to the consumers that will increase company revenues. It can also focus on determining the new fashion and trends in the different parts of the world. With the help of surveys, the company can deliver strong techniques to get the customer’s feedback and to fulfill their needs and demands.

The company needs to make the strategy that offers more customers oriented product on less price. It should provide the multiple products at multiple prices with high quality and this way, it would be easy for the company to maintain the competitive edge. It can increase the competitive position through multiple products and services when compared to its competitors. This way, company can increase the opportunities and encourage laws in the political environment. The dynamic nature of the company also presents the major consumers that position with respect to the money. This defines they deal with preferences on problems of price over quality and other campaigns of marketing and advertising of the company denotes to be committing as they are employed icons of the country to spread the message of the brands. (Pride, et.al, 2009)

The current strategy of Marks and Spencer is not very good and with respect to few changes, the company has to focus on dealing with the lost market share and customers. This way, the company can deal with high quality with respect to the achievement of customer satisfaction through quality service. (Williamson, 2013)

5. References

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Beamish, K, 2008, CIM Revision Cards Strategic Marketing Decisions, Butterworth-Heinemann

Bunston, L, 2008, International Marketing Project: Brazil – An Opportunity for M&S Expansion, BA Hons Fashion Business Management

DeSanto, B, 2010, Public Relations Cases: International Perspectives, Routledge

Doing The Right Thing, 2011, Available at: https://plana.marksandspencer.com.  Accessed April 13, 2011

Donaldson, B & O’Toole, T, 2007, Strategic Market Relationship: From Strategy to Implementation, John Wiley & Sons

Donelly, R. 2015. Marketing excellence: Marks and Spencer. Quality worth paying more for. Marketing society.

Doyle, P, 2008, Value-based Marketing: Marketing Strategies for Corporate Growth and Shareholder Value, John Wiley & Sons

Fisk, P, 2009, People, Planet, Profit: How to Embrace Sustainability for Innovation and Business Growth, Kogan Publications

Hackley, C, 2009, Advertising and Promotion: An Integrated Marketing Communications Approach, SAGE Publications

Hallbauer, S, 2008, Retail Marketing and New Retail Idea – Marks and Spencer, GRIN Verlag

Kumar, NE, 2001, Marketing Management, Anmol Publications

Kumar, R, 2008, Research Methodology, APH Publishing  Corporation

Kumar, B, 2010, Marketing of Hospitality and Tourism Services, Tat McGraw-Hill Education

Lancaster, G & Withey, F, 2007, Marketing Fundamentals 2007-2008, Butterworth-Heinemann

Marks and Spencer Group PLC – Price Analysis Snapshot, 2008, Available at: https://wrightreports.ecnext.com/coms2/reportdesc_PRICE_C826A7170  Accessed April 13, 2011

Mathur, UC, 2010, Retail Management: Text and Cases, IK International PVT Ltd.

MacRury, I, 2009, Advertising, Routledge

MacDonald, G, 2011, For M&S’s Bolland, Success is in the Detail, Retail Week, Available at:https://www.retail-week.com/city/for-mss-bolland-success-is-in-the-detail/5025603.article Accessed June 10, 2011

McElhatton, N, 2009, M&S Tops Customer Retention League as Morrisons Slips, Available at: https://www.brandrepublic.com/news/935936/M-S-tops-customer-retention-league-Morrisons-slips/  Accessed April 2, 2011

Morris, M, 2008, Starting a Successful Business: Start Up and Grow Your Own Company, Kogan Page

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Williamson, D., 2013. Strategic management and business analysis. New York: Butterworth Heinemann