Introduction
The most competitive fashion retail brands in the whole wide needs to constantly diversify clear marketing initiatives in order to sustain the global competition. Marks and Spencer are one of the top 10 fashion retail brands in the world. The company falls within the premium clothing market segment of UK. In addition to closing retail the company is also associated in food retail and financial service retail. In the recent times the organisation experienced significant competition from the counterpart in respective industry. The market share of marks and Spencer started reducing since 2004 (Economist.com, 2013). Although after the great recession of 2008 the organisation started reviving their market share yet we experience 0.2 % reduction in in overall market share in respective sectors for the brand. On the contrary the market share of the brand has been sustainable considering the kind of market segmentation and emergence of entrepreneurship-based brands in the fashion retail industry of UK. The organisation follow Robert plan for encompassing new market and achieve New market segregation and penetration. Joint venture and specific collaboration with various small retailers have been the successful strategy for the organisation in order to sustain in the competitive retail market (Elder, 2012). One of the eminent marketing advantages of the organisation is that they can make critical and huge capital investment at a time for covering significant marketing activities. Currently the organisation is at a good position in the European market. The organisation is also gradually diversifying their brand presence in Asian as well as Arabian countries.
PESTEL Analysis For Market Competitiveness
Political Factors
The European Union directives regulate working condition of suppliers in UK. Therefore, it has a significant impact on the operations of the company.
Economic Factors
Despite the downturn and stagnation of GDP of the company the consumer spending trend of the organisation highlights that there has been stability in consumer confidence in recent times. It also significantly impacts sales in UK. The economic factors like high rate of inflation make situation difficult for a section of people in UK. University Assignment Help experts said it impacts the purchasing parity and disposable income of the people of UK. This again in turn impacts the marketing initiatives of the company. The advertisements of marks and Spencer in UK should be moderated in order to portray the products as sustainable cities. In case of limited purchasing parity people generally emphasize on products which can be used on a sustainable basis and which are value for money. There for these two elements need to be incorporated in the advertisements so long the inflation rate impacts the people economy. Currently inflation is above target rate band of the bank of England because of successive increase in value added taxes. The unprecedented inflation rate of the European market is one of the eminent reasons why the organisation should always portray the image of their products as value against money (Factiva. 2013). Mintel research in UK highlights that about 50% of the people are middle level spenders (Mintel.com. 2013). People on a general basis, spent between 100 and 300 pounds for clothing on a 12-month basis. However, there is a third category of people who to make low level expenditure which is below 99 pounds for purchasing new clothes in UK. These elements have to be kept in mind while promoting the price tag of products.
Social Factors
The statutory rate of unemployment in UK and other associated countries of Europe is one of the reasons why consumer expenditure is significantly reduced. Therefore, it is important for the brand to highlight an image or a brand portfolio which does not associate them only with the premium segment of customers in UK. The ageing population of UK is increasing. People aged more than 64 years are increasing especially. This is the reason why the brand marketing activities should specify this segment as the target population. Now it can be highlighted with the help of Dissertation Assignment Help professional that some specific purchasing patterns of this segment of population should be emphasized in the marketing activity. First such factor is that 88% of this population imprecise on a durability of clothing (Felsted, 2013). This highlight that their purchasing pattern is completely contradictory to the high Street fashion trend where people are interested in changing fashion in a month or two months of time. The target segment of aged population over 65 years of age are highly emphasized on product quality and finishing quality of products. They are often confused regarding choices which is why the company should have easy return policy for this population. Never the less aged population will always require good quality of in-store customer service. Therefore, the marketing activities should not only be emphasized on creating good impression regarding product but also bolstering the good elements of in-store corporation that would be conveyed to people when they visit the outlets of marks and Spencer (Hasson,1995).
Technical Factors
Technical factors have a critical significance and importance in the targeted population segment of UK. Internet and online shopping habits have significantly increased. The rate of adopting internet and online shopping practices among new users is about 1.5 to 2% every year. The strong social media presence is another critical factor that should be regarded while considering the target population (Mellahi, 2002). Big data as well as customer inside has allowed the emergence of understanding nature of customers who not only fight over price and quality. Elements like ethical consumerism has emerged. These aspects allowed the customers to think whether the products have been manufactured within the country or not. The kind of suppliers and the kind of labour environment where the products are manufactured are also inquired by customers.
Legal Factors
Manufacturing and production outsourcing is one of the common elements of the working practices of the fashion retail brands of Europe. In this regard, legal elements influencing the kind of international working relations is very important. The local restriction and regulation in the manufacturing countries like China and India should be considered in this regard. The increase in cost in custom duty and transit by ship and airplane should also be considered in this regard. This is the reason why in the organisation should find out proper suppliers who can deliver quality products at low price of manufacturing (Kotler, 2009). It is imperative to develop a long and sustainable relationship with this kind of suppliers and develop a core group of loyal suppliers. Marks and Spencer should emphasize on developing sustainable relationship with suppliers who have lucrative return policy as well as product warranty. It is also important to look out for suppliers who have domestic trading authority and proper domestic trade mark for manufacturing export quality items.
Environmental Factors
30% of target population of marks and Spencer in UK and in other nations of Europe favor environmentally friendly retail practices. This is the reason why the organisation has to develop marketing content where they will be emphasising on the kind of environment friendly initiatives undertaken by the brand. To more about environmental factor take assistance from Do My Assignment experts of SourceEssay.
Marketing Mix 4Ps Strategy
Marketing strategy help organisations to achieve their business objectives. Marketing mix is used for defining the marketing strategies. Marks and Spencer follow robust and dedicated marketing mix for definition of their marketing strategies.
Product Marketing
Marks and Spencer are very popular and one of the top retail brands globally positioned outside UK. However, a significant share of business comes from the domestic market operations of the company. One of the most important elements of the product portfolio of the company is that they should exhibit items for all age groups and gender categories. There should be distinguished the product categories for men and women and kids. The most desired items for the women category of the brand include blazers, cashmere, linen, skirts, cardigan, jeans, shirts and so on. The footwear section includes boots, loafers, heels, pumps and so on. The bags and accessories market for women customers are also popular in UK in the popular products in this segment include handbag followed by beach bag as well as the sun glass and artificial jewellery. The organisation divided their market in UK on the basis of a specific sub brands for specific products (Hall, 2004). For evidence the most famous sub brands for women developed to buy marks and Spencer include Autograph, Classic, Indigo, Twiggy, Foot Glove and so on. Case study help professional stated The product for the women targets segment of brand is most important as women comprise the maximum purchasing target segment in Europe and this population has maximum disposable income as well. Other important elements in the product strategy of the organisation include the recently made diversification in the home and furniture segment. The organisation has incorporated home accessories followed by bedroom and living room and dining room furniture in their product list. The organisation also facilitates the food and wine segment which is the why the organisation incorporated new brands in their list of suppliers. The organisation sells flowers and other gift items (Marksandspencer.com. 2013). One of the eminent strategic approach of diversification in the product strategy of the brand is that marks and Spencer mainly emphasizes on in house brand rather than the international brands.
Pricing Strategy
It has been already articulated that the company has their own in-house brand for women clothing followed by men and children clothing. The in-house brands are mainly reputed for premium quality and the price categorisation is between medium and high level of pricing. On the contrary marks and Spencer follow the competitive pricing strategy as there is no option for the customers to shop because of increased competition. The organisation also experiences tremendous competition from online retailers and other big retailers within the UK market. This is the reason why the dynamic pricing strategy has been suitable for the company. During multiple seasons throughout the year the organisation offers discounts over their most popular range of products for acquiring more customers (Marketline.com, 2013). The company mostly clears old stock at a reduced price in order to give inventory space to the newly arrived stock.
Placement And Distribution Strategy
Marks and Spencer are an international company with more than 1000 stores currently operating throughout the world in more than 50 Nations. However, the major part of their business is in UK and there are about 900 store outlets in UK itself. The country has more than 50 stores in India where the operation started since 2001. Some of the other eminent countries with good presence are Turkey followed by Spain and France. In addition to that some branches are also located in Hungary and Finland (Mintel.com, 2013). Term paper help expertise defined The organisation has also developed their own shopping website from where customers can book products and get their products delivered at home. The organisation has also recently developed the option for international delivery for very limited product stock. However, majority of the delivery options are available for a product delivery from European Nations to Asian countries.
Promotion And Advertisement Strategy
Marks and Spencer sustain in an environment which is highly competitive because of which the marketing strategies selected by the organisation should be carefully developed. The objective should be aligning the advertisement campaign with that of digital marketing as well as in store marketing. In any advertisement window marks and spencer try to promote a common message which refers to value for money as well as sustainability and good quality of product. All mode of communication is used for conveyance of the same message. The company uses print media followed by television advertisement as well as mobile and social media campaigning for promoting their products (Nespresso, 2013). The organisation uses their own individual website for brand promotion followed by promotion of women clothing and that of men and child clothing. The company also provides a blog and the fashion tips on their respective websites. Marks and Spencer also promote their seasonal sale with individual marketing by email to their loyal customers who can get special discounts during the seasonal discounts. There is another special loyalty program where “sparks” points are added to the account of different customers on the basis of the amount which they are spending on their shopping activities. These are loyalty points which can be encashed on future transaction from the store of outlets of marks and Spencer.
Marks and Spencer have been a service marketing brand. This is a reason why it is important to analyse the other 3Ps of the brand.
People
Marks and Spencer have more than 1,000 stores in more than 50 countries. The employee strength of the organisation is more than 80000. The organisation provides a special attention to employees. Marks and Spencer follow the policy of competitive payment for ensuring employee retention. Along with basic payment, the organisation provides heavy reward and recognition on the basis of performance in order to boost their motivation for better performance. The employees of marks and Spencer are offered special discount for purchasing from the stores or online (Neville, 2012). However, one of the most important differentiating factors retrieved by thesis help professionals in terms of people management is provision of pension benefits in addition to life insurance and the share purchase facilities to the employees of the company. The company also runs and ongoing learning and development program for new joiners and also organises specialized programme for the higher role and responsibilities. The company provides the flexibility like flexible working hours for supporting working parents for employees who want to develop their carrier alongside working. The company also emphasizes on large range of diversity in every outlet for promoting the women employees by bringing more women friendly policy in their operating policy.
Processes
The stories of marks and Spencer can be located in the shopping mall or important sub-urban areas. Stores are beautifully decorated and organised in a synchronisation on the basis of product categories in comparison to other stores like wills lifestyle and pantaloons. The stores of marks and Spencer are generally large and divided into multiple floors for specific product categories like clothing or furniture or home accessories (Twentyman, 2013). Within the individual product category, we find the sub section for women and men and children. In most of the stores the ground floor is allocated for home product and personal accessories. The first floor is generally allocated for clothing products of women and men and children. The second floor is restricted for furniture and the other gift categories. The organisation has recently incorporated food items also. The organisation is also responsible for automatic checking installation in every store which help the customers in saving time as well (Ons.gov.uk 2013). The company also provides facilities like online purchasing by enabling people to login to the marks and Spencer website just like other ecommerce website. The customer also claims reward points if they have the special sparks card as a part of the loyalty program of the company.
Physical Evidence
Physical evidence like number of stores and employees in different countries have already been articulated. One of the important points to be highlighted in this regard is that the company has a wide range of product diversification and recently they are diversifying their products on the basis of consumer taste and preferences in different target segment categories in respective countries where marks and Spencer’s are operating (Wood, 2013). Therefore, physical evidence formulates one of the integral elements in the marketing mix of the company (Ruddick, 2012). To know more take help from ,Write My Essay For Me SourceEssay assignment writer team.
Recent Shift To Product Marketing And Its Outcome
MarksandSpencer overhauled marketing strategy in 2017 and 18 financial year to emphasize more on product and investing into the digital channels rather than developing blockbuster television advertisement. Although it was considered as the right decision but the availability as well as supply chain issues intervened into the success achieved during festive period. In the third quarter of the financial year 2018-19 it was observed that like-for-like sales reduced 2.1 % for the food category and 2.4 % for the clothing and home accessories category which accounted for drop in the revenue of the marks and Spencer group by about 4% (Faull, 2019). The valuation of 4% revenue drop is about 3 billion pounds. Researchers are calling this initiative of marks and Spencers as the unashamed commercial approach of Christmas advertisement and subsequent sales outcome. On the contrary researches of different categories are also perceiving the product marketing as the absolutely right thing to do for marks and Spencer on a long-term basis. Digital marketing has helped the organisation to save operating cost. One of the catalysts for changeover of the marketing activities in recent time was the overhaul of their marketing division in the financial year of 2017-18. It disregarded the top-down structure which was facilitated by the marketing chief of operations Patrick Bousquet. He was in favour of separate blockbuster advertisement for clothing and food function (Faull, 2019). Therefore, it required complete management of two separate division of advertisement and also require a separate division management director. On the contrary the organisation was able to save cost and effort when the product heavy Christmas television advertisement was the created and by virtue of that list of must have favourite items where shared across social media platforms. Majority of researchers called this brilliant synchronisation and the transition from television to social media domain where both set of target audiences could connect equally. The evident positive outcome of this synchronised advertising was that about 3 million customers found and reacted to the advertisements of marks and Spencer over Instagram in just four hours of time. This complimented the original seasonal advertisement campaigning strategy of the brand and ensured better reach of the product categories before the seasonal discount campaign to maximum number of customers.
Conclusion
In conclusion it can be denominated that marks and Spencer is one of the frontline clothing retail brands with prominent presence in the UK market. the company has acquired the sufficient brand reputation on the basis of their strong product diversification and product variety in individual product sections. The organisation emphasized on multiple target customer group with specific product values like a value for money product as well as premium product. It can also be state in conclusion that the renowned product glossary has helped the company to maintaining their brand name as a popular retail outlet. The organisation still accomplishes majority of their business in the UK market. In future the organisation need to diversify their product in more fashion categories in order to create better reach towards customers.
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