M&S key business areas are men's, women's and children's clothing and gifts, home furnishing, food and financial services.
Extracts from this essay...
Table Of Contents 1 EXECUTIVE SUMMARY 2 1.1 THE MARKET 2 1.2 MARKETING OBJECTIVES 2 1.3 STRATEGIC DIRECTION 2 1.4 ACTION PLAN 2 2 COMPANY BACKGROUND 3 3 STRATEGIC MARKETING PLAN FOR M&S FOR THE NEXT FIVE YEARS 3 3.1 MISSION STATEMENT 3 3.2 SITUATION ANALYSIS 3 3.2.1 The market 3 3.2.2 Competition 4 3.2.3 The customer 4 3.2.4 The products 5 3.2.5 SLEPT factors 6 3.2.6 Key points from marketing audit 6 3.2.7 Internal strengths 6 3.2.8 Internal weaknesses 7 3.2.9 External opportunities 8 3.2.10 External threats 8 3.3 MARKETING OBJECTIVES 9 3.3.1 Objectives 9 3.4 ASSUMPTIONS 9 3.5 MARKETING STRATEGY 9 3.5.1 Ansoff Matrix 9 3.5.2 Strategies 10 > Defining the Strategic Objective and Opponent(s) 10 > Choosing a General Attack Strategy 10 3.6 ACTION PROGRAMME 11 3.6.1 Pricing 11 3.6.2 Prestige goods 11 3.6.3 Product proliferation 11 3.6.4 Product innovation 11 3.6.5 Improved services 11 3.6.6 Distribution innovation 11 3.6.7 Manufacturing cost reduction 11 3.6.8 Brand positioning 12 3.6.9 Promotion and communication 12 3.6.10 People 12 3.6.11 Process 12 3.6.12 Physical evidence 12 3.7 MARKETING BUDGET 12 3.8 CONTROL 13 1 Executive Summary 1.1 The market * M&S key business areas are men's, women's and children's clothing and gifts, home furnishing, food and financial services. * The main competitor of M&S in the clothing market for the young with more street credibility is Gap, and in the middle of the market are Next, Debenhams and Principles. Furthermore, in the market of home furnishing, the main competitors of M&S are Debenhams and Laura Ashley. Moreover, the main competitors of M&S in the food market are TESCO, ASDA, Sainsbury and Kingfisher (in the UK), and Wal-Mart from the USA and Carrefour in France. Finally, he main competitors of M&S in the financial services are Lloyds, Natwest, Barclays and Midland and other banks. * By the beginning of 1999, M&S's market value was £10 billion and in the spring/summer of 1999 company's shares fell to a five-year low of 335p.
3.2.6 Key points from marketing audit After conducting a full marketing environmental audit on M&S to establish where the company is now, the key points were extracted and summarised as follows. 3.2.7 Internal strengths * History/prestige * Strong brand reputation-name. * Quality * Price * Service * The food sector of the company is best in UK. * M&S is a colossus. It operates 373 M&S stores, 85 M&S franchises with partners outside the UK, 173 Brooks Brothers stores and 40 Kings Super Markets stores, as well as operating some direct marketing activities. * It has a strategy of superior customer value through excellent customer service and high customer loyalty, a unique brand identity, closely managed relationships with suppliers, employees and customers and continuous innovation in products and trading methods. * It has been able to renew itself and grow profitably where many others have failed. * Outstanding long-term growth performance, profitability and customer satisfaction. * M&S has grown largely organically, testing new markets with low-risk acquisitions. * It accepted social responsibilities to employees and to the community at a far earlier stage than most, and was a forerunner of the now popular 'stakeholder approach' of partnership. * Effective supply chain management * Continuous innovation and learning * New organisational form - the first 'manufacturer without factories'. * M&S was one of the earliest retail firms in Europe to integrate retailing and wholesaling, by dealing direct with manufacturers instead of through intermediaries. * It understood the concept of the 'virtual company' before that phrase was ever invented. * The brand defines a standard of excellence under which many suppliers can operate and which can be applied to many product areas. * M&S understand and control products from raw materials to finished goods. 3.2.8 Internal weaknesses * Constant rivalry between the two board members appointed to safeguard the families' interest. * The fact that M&S did not provide changing rooms in its store in Paris and French women will not buy underwear without trying it on.
* Advertising. Assess and select several agencies to pitch for the business in order to obtain a variety of ideas to promote brand strengths and target the correct people/channels. * Use the Internet to service and inform the dealers/distributors. 3.6.10 People * M&S must train its people/staff to become customer-orientated. * Obtain feedback through employee focus groups and regular team meetings. * Encourage empowerment through offering incentives and reward systems. * Promote the values of customer service to employees. 3.6.11 Process * Establish a greater degree of customer contact through the process of building relationships, focusing on the service side of the business. * Quality systems such as ISO 9000 are necessary for the company in order to maintain quality levels and enhance the reputation of the company with dealers, distributors and customers. 3.6.12 Physical evidence * Create a good, aesthetic environment that motivates and facilitates work, eg air conditioning. 3.7 Marketing Budget * Use 10% of its turnover for its people (staff), to train them to become customer-orientated and promote the values of customer service to employees. * Use 30% of its turnover in the advertisement, promotion (of its products) and communication. * Use 30% of its turnover for the development and innovation of the company and its products. * Cut the unnecessary costs. Eg. Reduce the costs of dealing with suppliers by £100 million. 3.8 Control * Measure against set corporate and marketing objectives. * Use market data to assess competitors and find strategic opportunities. * Assess plans, compare with budgets and variances on a monthly basis. * Feedback from the sales force. * Use MkIS to assess strategic direction. 1 Kotler, Philip (2000), "Marketing Management", Prentice Hall, p. 241 2 Kotler, Philip (2000), "Marketing Management", Prentice Hall, p. 241 3 Kotler, Philip (2000), "Marketing Management", Prentice Hall, p. 241 4 Kotler, Philip (2000), "Marketing Management", Prentice Hall, p. 241 5 Kotler, Philip (2000), "Marketing Management", Prentice Hall, p. 241 6 Kotler, Philip (2000), "Marketing Management", Prentice Hall, p. 241 7 Kotler, Philip (2000), "Marketing Management", Prentice Hall, p. 241 8 Kotler, Philip (2000), "Marketing Management", Prentice Hall, p. 241 1
Found what you're looking for?
- Start learning 29% faster today
- Over 150,000 essays available
- Just £6.99 a month
- Over 180,000 student essays
- Every subject and level covered
- Thousands of essays marked by teachers