In November 2010 Marc Boland new chief Executive announced the next five years plans. They should also internalize the Organizations core values and embrace them at all times. Pricing strategies, for example, cant be set lower than the costs of making the products (reaching break even point). Based on the mission of the business the organizational strategies are put into words. Tesco has expand geographically from the time early 1990s and into sections like electronics, furniture, and internet services etc. Weakness are the areas where Marks & Spencer can improve upon. The main reason for not to attract the new customer is high price and old fashioned clothes. M&S targets various segments of customers such as the youth, low-income earners, high-income earners, and the elderly. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! There are six of these forces, Political, Economic, Sociological, Technological, Legal and Environmental factors. M&S will also clarify the position of its sub-brands, moving them from labels to real brands, According to him In Food, M&S will gain a clear market position as a specialist high-quality retailer, inspiring customers with unrivalled quality and innovation. are all compete on price, quality, range, and service in order to strive for business success. In fact, the closure would make some of the customers to shift their loyalty to the competitors of M&S (Beaver 1999). Economic situation of the country is the factor that can pressurise the M&S business. Its main competitors include NEXT PLC, GAP, and H&M. The last three years have been useful for the Organization because it has developed a strong foundation for the growth of its business. Especially in the home furniture department, well trained staff is required. If business is running in loss then it is better to close that business. The management of the organisation has been assisting. The reason is that those women have expressed a lot of interest in womens outfits which are currently sweeping across the UK and in other markets. Quality and care are at the heart of everything we do especially when it comes to making our products. This is IvyPanda's free database of academic paper samples. 3. Following is highlighted some factors of M&A's external environment and how they effect Marks & Spencer in executing its strategies: (P)OLITICAL VRIO analysis of Plan Spencer is a resource oriented analysis using the details provided in the Tough Decisions at Marks and Spencer case study. This statement is based on the Organizations business model. In other words, the Organization operates an online suggestion box, which it uses to improve its services (Bodnar & Cohen 2012). Armstrong, G & Kotler, P 2009, Marketing. Summary. However, there is a need for consistency when marketing products on Amazon.com. At the local level, it has taken various measures aimed at boosting growth in the UK. The employee segments named above have specific needs and concerns as shown below: What M&S would want employees in this segment to know is that they need to humble themselves and work hard. To serve such a high number of valued customers visiting 600 stores in the UK the company employs more than 75,000 staff worldwide (Company Overview | MarksandSpencer.com) . If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Contextsustainability.com: Report review: Marks & Spencer Plan A report 2014: Putting consumers centre stage 2014, Web. Human resource cannot be imitated and helpful to firms value. For instance, GAPs main target customers across the globe are those aged 15-35 years. To carry out this report we have selected a company named TESCO which is a worldwide grocery and universal products dealer founded in the year 1919. As shown above, M&Ss customers are classified into various segments. Company Overview Marks and Spencer (M&S) is one of the top retailers chain in UK which claims to be the top womens wear and lingerie seller as well as better quality food seller. It is through the chain of command that authority and power to make decisions are entrenched (Sims 2007). However, in terms of responsibilities, those at the bottom are mostly involved with the daily activities of Organizations while those at the top are mostly involved with policy issues and public relations activities. The motivating factors of the customers in these segments include differentiation and positioning. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. In terms of controlling, the management of Marks and Spencer has frequent reporting of expenditures with costs to provide a form of feedback. The M&Ss market is broadly classified into two categories named below: M&Ss market segments are based on the following criteria, The market can further be segmented using the following criteria, In terms of income, the customers are further segmented using the following criteria. Reinventing strategic management: New theory and practice for competence-based competition. As M&S products are older fashioned and expensive, they have to make a strategy that deliver more customer oriented product on less prices. In each part of the business M&S has a lot of competitors like BHS, NEXT, Burton and Gap. The whole idea behind differentiation is to create a market niche for that particular product or service. 1. The UK clothing retail industry has experienced significant growth, which has focused attention on studies in the field with this sector being considered as the one of the most competitive markets in Europe. Changing store environment, design, fashion, food and change in lay out can attract more customers. M&S is also famous for high quality and great value for mens garments with unique classic styles. 2021, ivypanda.com/essays/marks-amp-spencer-companys-marketing-environment/. M&S is the first company in UK that introduced self customer service. It has also taken initiatives to strengthen its foundation and improve customer satisfaction. There were many reports that M&S no longer understood the customers' needs and had misread its target market. Mission, Objectives and Responsibilities of Mark & Spencer with its environment. Stuart Machin, Chief Executive of M&S commented: "Stores are a core part of M&S's omni-channel future and serve as a competitive advantage for how customers want to shop today. 3. Beaver, G 1999, Competitive advantage, corporate governance and reputation management: The case of Marks & Spencer, Journal of Communication Management, vol. It is the multinational retailer that operates various retail stores. It provides its customers with various online services. Boosting personalized selling (Thompson & Martin 2005). Over the last 3 years, the marketing environment for M&S has had a mixture of fortunes and misfortunes. This process is started while idea generation and financial planning as well as continue to the process of implementation. This gives the organization a picture of what strengths to exploit and develop further, and what weaknesses should be corrected to reduce market liability (Hill and Jones 2012). M&S should introduce new non-M&S food brands without increasing cost. Big brands like NEXT, Gap, BHS and Burton are attacking M&S in clothing business. Communication is an essential component of business strategy because it enables organizations to reach their customers. M&S is very sensitive to technological, social and economic factors. IvyPanda. Most of them are pensioners and upper class people would like to pay a lot for their clothes and food. It also uses it to update customers on new products and services. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Iceland is offering wide and best range of food products. Copyright 2022 IPL.org All rights reserved. Study for free with our range of university lectures! Over the last one quarters, M&S's revenue has decreased by 0%. At the same time, it is also essential for Marks and Spencer to determine the marketing and management capabilities needed to maintain the achieved market and competitive position. The company will follow the same pricing strategy by highlighting its off-prices on different platforms. 2021. Sir Richard Greenbury, insisted that the profit loss was due to the competitive environment. The employee market sector has various segments. The other reason is that M&S derives most of its profits from selling expensive clothes, especially to middle-aged men and women with high-income. Every organization tries to gain best position in market. M&S has to change its behaviour of slow response to consumers changing needs and preferences. (P1.3) Once the business strategy is formed, there are different techniques in developing the strategic plans of the business using various tools by the organization. Retrieved from https://ivypanda.com/essays/marks-amp-spencer-companys-marketing-environment/. For instance, Facebook has a feature for customizing audience using e-mail. If we compare the prices with BHS or top shop we will find that BHS has lower prices than M&S. (2021) 'Marks & Spencer Company's Marketing Environment'. In order to take competitive advantage, Marks & Spencer should have good relation and understanding with their buyers and suppliers. "Marks & Spencer Company's Marketing Environment." It is because the competitors in the market have been attempting to control the market. The organization also engages in charity work and other corporate social responsibility activities, thus creating a very conducive social environment for its operations. And Marks & Spencer (M&S), despite 10 years of effort, still hasn't got anywhere near to the operating profit margin it had back in the 1990s. A new partnership with Ocado has cost 750m, but will at . Generic strategy was developed strategies under this school, especially it can identify position in the market. M&S needs to focus on the top end of the clothing market but deliver stylish cloths, beautifully made with fantastic value. New M&S home stores should open to capture more furniture market. The database is updated daily, so anyone can easily find a relevant essay example. McDonalds is the largest fast food restaurant chain in the United States and represent the largest restaurant company in the world, both in terms of customer served and revenue generated. In clothing each business has to modernise the clothes according to the latest fashion. Companies next have to organize the process of development. However, that does not mean that it has neglected the other segments such as low-income earners. The management believes in collecting and assigning . Weakness of Marks & Spencer - Internal Strategic Factors . Discuss this statement with reference to the performance of the UK retailer Marks & Spencer over the last 10 years. It is preferred by many companies that want to increase their coverage and number of customers. Criteria for comparison Marks and Spencer Morrison Sales in the last five years (increment in amount) 10.300 billion 8.200 billio n Revenue of the company in last five years 481.7 million 389.8 million Presence in markets Marks and Spencer is present in various markets and it has 852 stores all over in UK. Even though its general merchandise division didnt do well over the last three years, the organization has developed strategies for overcoming that challenge. Introduction of products is only possible with best marketing and advertising approaches. Stuart Machin, the chief. New media technologies can be used for efficient delivery of new taste and fashion trends from factory to store displays, better communication with designers, producers and suppliers is very important for the company, Zara is one of the fast market changing competitors of M&S, it is important that M&S be ahead of any of its competitors while keeping its classic touch of style in some range of products. The initiative has been praised for enabling M&S to achieve some milestones, especially increasing customer satisfaction. Out of all the stores, two stores were not making any profits, so Company Q has recently closed those two stores. Political, Social, Technological factors are favorable, while Environmental factors are neutral and Economic and Legal factors are slightly unfavorable These forces and factors are very vital for M&S survival and growth in the competitive market. These factors affect Marks and Spencer's marketing position, low price theory and . The main competitors of M&S are listed below: The main strength of these competitors is that they focus on trendy fashion. Last accessed 16 May 2011., In this assignment, there will be a critical comparison of the UKs biggest retailers Tesco and Sainsburys, outlining their marketing strategy, the key factors of their success and also the advantages and disadvantages of both companies. M&S operates in dynamic social, political, and economic environments. These are known as macro environmental factors. Hoovers Inc: Marks & Spencer Group P.L.C. M&S has an excellent communication strategy which has enabled it to maintain a good relationship with its customers and stakeholders. It also operates a website where it posts business information for access by potential customers (M&S: student information 2010). Break even point ) is offering wide and best range of food products are at local! Cant be set lower than the costs of making the products ( reaching even. 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