The back to basics marketing approach of marks and spencer

The back to basics marketing approach of marks and spencer Title of the Project The scope of the project is to emphasize on the Marks and Spencers back to basic approach of marketing to capture the down-size in the market. Introduction Marketing is one of the core functions of any organization and an organizations most sincere efforts to attract the market can be inefficient if it lacks a basic marketing model to analyze the market segments, equip with the most appropriate product mix, and assess the competitors activities to ensure proper growth. The scope of the proposal is to analyze basic approach of marketing in UK by Marks and Spencer and also relate its importance in todays organizational success when its first marketing department was formed in 1998. The emphasis is on Marks and Spencer formal marketing planning, comprehensive situation analysis and adoption of pro-active approach to the future. Background of the Organization Marks and Spencer was formed in the year 1884 by Michael Marks and Thomas Spencer today is one of the leading retailers in UK known for its high quality, fashionable and value clothing. It also has its presence in luxury food products, footwear, gifts and home furnishings. Marks and Spencer was a success story till 1998 after which a sudden fall in sales and growth of the organization led to sharp decline with shut-down of stores and numerous cost cutting measures. The revival plan was basically focused on the basics of marketing (focus on core business and brands, better product range, improve sourcing and supply chain etc) ignored in the continuous success story. Marks and Spencer today is again one the leading retailers in UK with an international presence, employing more than 75,000 people , having over 600 stores in UK alone and growing at a tremendous stage all over the world. Over the years, Marks and Spencer has not only evolved on international platform and gained recognition but also started its online business and introduced several campaigns in Corporate Ethics and Social Responsibility (Look behind the Label, Plan A and many other charity works). It has been in several controversies also but with the improved marketing plans is scaling new heights in the industry again. Purpose of the Research The purpose of the research is to analyze that marketing is the most essential of all the activities of the organizations as it is regarded as the direct means to reach the customers. The research will be conducted with respect to Marks and Spencer to: Understand the marketing basics closely in the organization. Analyze the focus of the overall marketing towards the customer solutions to capture market. Understand the positioning of the product in the market in terms of quality and value. Analyze the changing market requirements and promotion techniques adopted Understand the positioning of the competitors and monitor competitor behavior towards the changing market. Study the market segments and analyze the distribution channel. Identify the specific reasons for decline and framework adopted for growth that lifted Marks and Spencer back to the market. Rationale of the Research The lack of understanding of the marketing needs led to the downfall of Marks and Spencers. As per the basics Product, Price, Distribution and Promotion are the key components of any organizations marketing technique and Porters Five Forces model also has been identified to assess and analyze the position of the organization. Marks and Spencer was considered the largest retail market holder in UK perceived as having excellent quality and value of the products but its attempt to move into more fashion oriented clothing was not very successful with strong competitors like GAP, OASIS and NEXT. This study on the Back to Basic Approach on Marks and Spencer will help us understand how the utilization of the resources from marketing perspective helped it gain competitive advantage and brought itself back to the market. Research Questions The basic questions that will cater to the research are What are the basic marketing concepts and how organizations need to emphasize on the effective implementation of the plan. How marketing involves everything you do regain and retain growing base of customers. How to assess the basic marketing questions with context to competitive position. Research Objectives The research objectives are: Critically review the basics of marketing and relate its importance in todays organizational success. Conduct a qualitative and quantitative research to monitor the competitors market and positioning. Critical review of the decision making capabilities in the operational areas of marketing. Literature Review: A complete review will be undertaken to gather the published and unpublished data and provide a detailed understanding of the basic of marketing and its impact on the organizations success. The base of the review will be to analyze the overall market, product and is achieved through substantial research of the market and accurate data retrieved. Marks and Spencer went through a major downfall, the sudden sales dip cautioned the organization as well as the shareholders of the warning signals ahead. The customers dis-appointment, increasing cost, changing economic conditions and slipping market shares all stood as major concern for the management. The table below reviews the decline, Year ended Turnover (Â £m) Profit before tax (Â £m) Net profit (Â £m) Basic eps (p) 1-Apr-00 8,195.50 417.5 258.7 9 31-Mar-99 8,224.00 546.1 372.1 13 31-Mar-98 8,243.30 1,155.00 815.9 28.6 31-Mar-97 7,841.90 1,102.10 746.6 26.7 31-Mar-96 7,233.70 965.8 652.6 23.3 Source: www.abeuk.com The management started reviewing the basics of the business and it all outlined to the role of marketing in the growth of the business. As per the literature, the concepts of marketing mix, 4Ps (Product, Price, Promotion and Place) will be thoroughly reviewed in Marks and Spencers context and the emphasis will be to logically explain the evolvement of the marketing mix. As per Marks and Spencer analysis, the details will also cover the service marketing mix of additional 3Ps (People, Process and Physical Evidence). Also, the review will emphasize on the Porters Five Forces Model to analyze the basics of the industry and marketing development. It also covers the SWOT analysis for Marks and Spencer and gives an overall view of the fundamental issues faced and the plan adopted to overcome the shortfalls. A careful SWOT analysis is very important for an organization to tread towards success and be a leader in the market. The strengths are covered in the exiting organization chain and opportunities lie in addition of new line of products and catering to new market segments. The threats and weaknesses comprise of competitors strategies, innovations in market, new entrants, suppliers. Source: http://www.businessballs.com/ Research Methodology: The research methodology adopted here aims at examining and proving the existing basic marketing theories of the 4Ps (Product, Price, Place and Promotion) and Porters Five Forces Model. It helps in proving again the logical reasoning behind the development of the theories- 3Ps (People, Process and Physical Evidence) and their relevance in the marketing context. The method adopted is clearly to emphasize not only on the importance of marketing plan in business but also on the effective implementation for growth. Data Collection and Data Analysis: The first step will be to collect data through primary and secondary data collection. Primary and secondary data collection would bring thorough understanding of the subject matter and it will be done through online research, printed material (journals, case studies, and news releases) and other researchers /practioners in the subject area. The data collection process also involves from questionnaires, personal interviews, etc to analyze the research questions. The analysis of the data will be both qualitative and quantitative, emphasis being on the accuracy of the sources of data collection and also considering the phases of data collection. The analyzed data will reflect the shortfalls in the implementation of the marketing plan and will also highlight the changes required in Marks and Spencer business. Action Plan: The basic marketing approach that turned the fortune of Marks and Spencers that brought significant changes in the organizations strategy and structure to make the proposed goal a success. The strengths are covered in the exiting organization chain and opportunities lie in addition of new line of products and catering to new market segments. The basic focus was to regain the customer confidence, understand the growing markets, expand product line, and grow distribution lines, value realization, and appropriate cost-cutting measures for the existing products. Marks and Spencer realized that their franchise business operates at a much profitable level than company operated stores, be more specific in area usage of the existing stores and reduce the additional cost incurred in acquisition of raw material from existing suppliers.