Question :
As per the scenario of this project, a marketing consultant has been approached in Marks and Spencer to develop a marketing plan to recover and grow the organization’s clothing business by implementing different strategies. Here, the description of the organization’s new marketing plan is determined through:
- Develop new marketing objectives of M&S as implement situational analysis for firm.
- Evaluate target market and a new segment on the basis of the new objective of Marks and Spencer.
- Conduct marketing strategy as well as an effective implementation and control plan for M&S.
- Clearly state proposed budget as well as sales projection for the requested marketing plan.
Answer :
INTRODUCTION
Marketing plan is analysed as road map that clearly provides direction to organizations and its management towards reaching to business objectives. Present report is based on analysis of clothing business of Marks and Spencer, which is major retail business enterprise of UK. In order to achieve growth, removing the cost and simplifying the business, marketing plan is developed to comprehend the growth of business and determination of strategies that needs to be applied for accomplishment of objectives (Brooks and Simkin, 2012). In this context, as marketing consultant situational analysis of M&S clothing business is accomplished to analyse the factors that affects its business growth and profitability in market. External analysis is done through application of PESTLE model and internal analysis is done by using Swot analysis model. Consumer’s behaviour and competition in clothing sector for M&S is also discussed along with the target market of organization. Further, marketing mix strategy of organization is also determined along with the implementation and control of strategies.
Objectives
- To increase the profitability of clothing business by 20% in next quarter.
- To increase the total sales of clothing business by 2.3 billion by year 2017.
- Increasing number of customers by reducing the cost of operations.
- Increase average length of customer relationships and decrease customer turnover.
- To merge the retailer's womenswear and kids wear teams.
- Reducing the cost of operations for removing pre tax burden on consumers.
- To restore its price position by investing in everyday price and reducing the number of promotions and sales (Haverila and Ashill, 2011).
- Increase in number of online shopping customers by 7.4 million.
- To increase the sale in international by business by 2 percent in next three years.
Market situational analysis
Situational analysis is accomplished with an aim to determine the competitors and influences of internal as well as external market on business operations of M&S. In this context, marketing plan is also developed with an aim to analyse problems faced by organization due to these major factors (Pike, 2015). These factors will also help in identification of measures that needs to be taken by organization for resolving those problems in market. M&S is the UK’S leading clothing retailer but it has now faced the competition in clothing sector from one of the most exclusive brand Zara limited. Further, PESTLE will provide a clear understanding of factors that affects the market position and growth of its clothing business.
- Political: It is essential for M&S to follow the government policies in regulation of business operations in European market. There are various policies such as Taxation policies, Free trade agreement, employment legislations and other business marketing policies also provide implication on business operations of organization. In present context, M&S group revenues were 10.6 billion pounds which was identified growth of 2.4 percent from last quarter but increase decrease in pre-tax profits by 18.7 percent has reduced their earning (Malhotra, Birks and Wills, 2013). Along with this, changes in employment regulation have also increased their cost of hiring employees at workplace. Increase in inflation rate also provided influence on business and reduced their customers in market. Moreover, Increase in cost of promotions and advertisement have also increased their costs and resulted 14 percent fall in profits for its 2016-17 financial years, reflecting lower sales and higher employment cost. In order to reduce these issues, M&S has planned to drive improvements in its quality, fit and availability for its ranges, while lowering the prices and reducing the amount of garments sold off in special promotions.
- Economical: M&S is mainly affected by the competitors discounted pricing policies in clothing retail sector. M&S concentrated on supply of high quality products which not only led to short term loss and customers were attracted towards quality with the value. Customer behaviour and confidence was sustained by M&S efforts to push through enhanced quality (Forshier, 2012). Increase in inflation and financial crisis has however led to more price sensitive customers and company is required to work on with the market if they want to sustain their sales. Increase in tax burden has also reduced the buying power of customers which has led to decline in sales of enterprise in market (Evans, Stonehouse and Campbell, 2012). It has increased employment and suppliers cost for M&S in clothing business.
- Social: These involve the impact of perception, values, current trends, culture and behaviour of customers towards products and services which has also affected sale of M&S in clothing business. With the economic development of UK, buying power of customers has been increased. This has influenced the perception of customers towards purchase of high quality products and service. However, increase in inflation rate has led the customers to be price sensitive. Customers are now likely to buy products with high quality at low rates.
- Technological: Adaptation new digital marketing communication channels are implemented by organization which has provided positive impact on their business operations. Social media applications such as Facebook and what’s app messenger are used by organization for promotion of their products and service directly large number of population. Implementation of new technologies and advertisement channels such as E commerce websites, company website and online selling has also increased the sales and profitability of clothing business of M&S (Baack, Harris and Baack, 2013). However, this technology has also raised the competition in market by increase power of customers to make choices. Therefore, it is essential for company to reduce prices of their products to achieve growth in clothing business. Direct Emails and tele calling methods are also used by marketers of organization for customer relationships management and retain old customers.
- Legal: There are various factors like employment laws, financial laws , health and safety laws , advertisement laws and other policies made by government are also provide influence on business operations of Marks and Spencer. In this context. Legal restriction created on import and export of products and service in other countries by UK government after Brexit will also provide implications on business (Terpstra, Foley and Sarathy, 2012). Change in employment laws has also increase cost of operations of enterprise. Consumer rights act has also led down some challenges for organization in online selling of products. However, M&S needs to ensure that they do not obstruct any law or regulations both its home market, international market as well as in the countries alongside its value chain.
Environment analysis: With stricter environmental laws and regulations both at European and international level and increasing consumers’ pressure concerning business practices, major retailers and brands are required to examine the life cycle of their products top grave from their suppliers to end usage and disposal. M&S is also required to be transparent about their strategic and tactical environmental practices and should be fully accountable.
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