This report will lead a strategic audit analysis of Marks and Spencer with the purpose of increasing and maintain the client base and market share in the United Kingdom.
The company is one of the UK's leading retailers and offers a wide range of products that include cosmetics, clothing, household items and luxury goods.
This report will apply Porter's five force model, PESTEL, and SWOT to evaluate the organisation, its current marketing strategy, and position in the market. This report will also propose recommendations for improving the actual situation in the market.
TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
TABLE OF CONTENTS 2
1.0 INTRODUCTION 3
2.0 4P’S OF MARKS AND SPENCER 3
2.1 PRODUCTS 4
2.2 PRICE 4
2.3 PROMOTION 5
2.4 PLACE 5
3.0 PESTEL 5
3.1 POLITICAL FACTORS 6
3.2 ECONOMICAL FACTORS 7
3.3 SOCIOLOGICAL FACTORS 7
3.4 TECHNOLOGICAL FACTORS 8
3.5 ENVIRONMENTAL FACTORS 8
4.0 PORTERS' FIVE FORCE ANALYSIS 8
4.1 THREAT OF NEW ENTRANTS 9
4.2 THREAT OF SUBSTITUTES 9
4.3 BARGAINING POWER OF BUYERS 9
4.4 BARGAINING POWER OF SUPPLIER 10
4.5 INTENSITY OF COMPETITIVE RIVALRY 10
5.0 SWOT ANALYSIS 10
5.1 STRENGTHS 11
5.2 WEAKNESS 11
5.3 OPPORTUNITIES 12
5.4 THREATS 12
6.0 CONCLUSION 13
Marks and Spencer is a leading multinational retailer based in the United Kingdom (UK). The company started back in 1884 as a stall market and has grown worldwide. Nowadays the company has around 1035 store only in UK and 428 around the world. The company offers high-quality products, stylish, home products and excellent value clothing. In the last years, the company has also developed a range of high-quality food products. It employs roughly 81 thousand people, 72% of which are female.
Since 2010, the retailer has increased its revenue worldwide, and actually, its revenue figures reach £10.8 billion. The primary income comes from UK costumers with a revenue of 9.6 billion, 5.9 billion of which are coming from clothing and home products while the remaining 3.7 billion coming from food sales. Another 1.1 billion comes from abroad stores, totalizing a revenue figure of almost 10.7 billion.
The online platform of M&S has seen as well a grown since 2011. In fact, the company has had an increase in revenue of roughly 370 million. However, the online sales seem to have impacted the number of people who visit the store; at the moment we have a weekly average of 19.5 million consumers, a fall of approximately 1.5 million in average for 2009/10.
The company, which is commonly known as "Marks and Spencer", "M&S" or "Markies" ranks highly when we talk about consumer perception. A survey in 2017 has shown how 37 percent of shoppers think that the company offers five stars rating for customer service while 67 percent would give the same rate in product quality. In 2017 the company has classified eighth leading brand across industries on Buzz Score Rating; however, this showed a decline for the company in comparison to 2012.