This report is on ‘Global Marketing management which is completed as part of course requirement. Here, a scenario has been given where I’m employed as ‘Global Marketing Consultant’ of Marks and Spencer PLC. M&S is planning to launch its brand in China. A management report has been prepared to address global marketing issues related M&S. Several marketing tools has been used to assess strategies of M&S.
Firstly, macro and micro analysis has been conducted on China’s retail market. PESTEL analysis has been done to understand the retail market of China. Then porter’s five forces model is applied on retail market to identify micro factors affecting retail industry.
Marketing objectives of M&S in china is also developed using SMART objective. Corporate and business strategies to be used in Beijing are also discussed considering the competency of M&S in global market.
Finally, potential model to be applied in Beijing and its adaptation with strategies of M&S is discussed. Moreover, justification is also made on marketing tactics of M&S which will be used in china.
Table of Contents
2 Company profile
3 Macro Environment analysis: PESTEL
4 Micro Environment Analysis: Porter’s five forces model
5 Marketing objectives of M&S:
6 Corporate Strategies:
7 Business Strategies of M&S:
7.1 Organic development:
7.2 Product development:
7.3 Concentrating on Supply-Chain Management
7.4 Maintaining lead on innovation and quality:
8 Business Model for M&S in Beijing
8.1 Value Proposition Model:
8.2 Operating Model:
8.3 Marketing Tactics for Expansion
Marks and Spencer is a century old British multinational retail company. It was founded by Sir Michael Marks and Thomas Spencer in 1884 and headquartered in London. It sells clothes, luxury food products, and home furnishings using the trademark of St. Michael and operates worldwide including UK, Europe, Asia and Americas (Cadogan, 2009). Clothing products constitutes 49% of its business whereas food items and others account for remaining 51%. Along with the retail business, Marks and Spencer also provides financial services.
M&S is regarded as the most trusted retail company in UK. Mission of Marks and Spencer is to provide quality, service and value to its customer. It is guided by five core principles- to develop long term relationship with its suppliers, to provide narrow selection of products at reasonable prices, to support British industries, to promote itself to peak and to use single brand name for all of its products. All these principles have strong influence on British customers, manufacturers and workers and it gets support from them. It is the first British retail company which has generated 1 billion dollar pre-tax profit in 1998. Marks and Spencer is listed in London Stock Exchange. In FTSE 100 Index it is also a constituent.
M&S has more than 1100 stores including 800 stores in UK and 300 stores worldwide. Around 85 thousand employees are working M&S and it generated 10 billion dollar revenue in last economic year. It entered into global market by franchising and expanded business in USA, Canada, Ireland, France, Belgium etc. Due to its management failure, M&S has withdrawn its business from many countries and reshaping its international presence. In recession period during 2005-07, it saw 11% decrease in profit margin (Osterwalder, Pigneur and Clark, 2010). However, in 2009 it began to make profit by generating 17% increase in profit and 5% increase in market share. Now, M&S has targeted Asian market, particularly China and India as its potential market to expand its business.
PESTEL analysis is a marketing tool which is used by a company to analyse macro environment of an industry. It is mnemonic of five words- Political, Economic, Social, Technological, Environmental and Legal. To re-launch M&S stores in Beijing, it is required first to conduct macro analysis on retail industry of China.