Marketing plan of Marks and Spencer -Dubai

Chan Ka Wing GiovannaChong Yijie

Hamza Sheikh

Content•Introduction •PESTLE analysis (Marco-environment)•SWOT analysis (Micro-environment)•Competitors analysis•Suppliers analysis•Core Marketing Strategy (Segmentation,

Targeting and Positioning)•Marketing Mix (4Ps/7Cs)•List of References

Introduction•First store was established in 1901 at

Manchester. (Marks and Spencer, 2012)

•One of the UK’s leading retailer. (ibid.)

•Offer clothing, home products and foods. (ibid.)

•Employ 78,000 employees in the UK and abroad. (ibid.)

•More than 703 stores in UK and over 300 stores across Europe, the Middle East and Asia. (ibid.)

•Provide online services through marksandspencer.com. (ibid.)

PESTLE Analysis in U.A.E.

•Political•Economic•Socio Cultural•Technological•Legal•Ecological

Economic

Factors

Socio culturalFactors

Technological

Factors

LegalFactors

Ecological

Factors

PoliticalFactors

Marks and

Spencer in UAE

PESTLE Analysis-Political

•Each emirate in the U.A.E. still retains substantial autonomy. (Michigan State University2012)

•A politically stable and forward-looking administration (Middlesex University Dubai 2009)

•The U.A.E. has no political parties(Michigan State University2012)

PESTLE Analysis- Economic • Weak recovery in Dubai Affect on consumer prices in 2011 (UAE Country Report. Jan 01, 2012)

Inflation rate: 0.9% 2.6%(ibid.)

Fixed exchange rate 3.67 UAE Dirhams per one U.S. Dollar. (ibid.)

• Favourable tax regime(Middlesex University Dubai 2009)

• maintains non-tariff barriers to trade and investment(ibid.)

• business-friendly regulations (ibid.)

• low-cost business environment (ibid.)

PESTLE Analysis- Socio-cultural

•Demographic forces:

−the world's second highest population growth rate of 10.68% annually during 2000-2010(The Central Intelligence Agency 2012)

PESTLE Analysis- Socio-cultural−Age structure

Age Structure

in the U.A.E

Percentages

Number of Male

Number of Female Sex Ratio

0-14 years 20.4% 537,925 513,572 1.05 males/female

15-64 years 78.7% 2,968,958 1,080,717 2.75 males/female

>65 years 0.9% 30,446 17,046 1.77 males/female

Figures from Central Intelligence Agency(2012)

• Cultural forces:

−The highest average online shopping spending

an average of $1,048 in Q4 of 2009 (Mehmood, F. 2010, Nov 03rd)

•Influx of a large foreign population (Michigan State University2012)

PESTLE Analysis- Socio-cultural

PESTLE Analysis- Technological

• Self check-out machine•Wireless devices

•QR Code

PESTLE Analysis- Legal•Methods to establish a company in the U.A.E.

-Incorporating a Limited Liability Company (LLC) -Establishing a Branch office or Representative office -Establishing a wholly owned entity in one of the U.A.E. Free Trade Zones. (Ali & Partners 2004)

• Incorporating a Limited Liability Company Al-Futtaim Group (Marks & Spencer UAE L.L.C 2012)

•Commercial Agencies Law (UAE Country Report. Jan 01, 2012)

UAE eliminated trading agency requirements for basic food products in August 2006

PESTLE Analysis-Ecological

• Conservation of energy and resources Issue the Federal Law in 1999

(Al Abed,I. and Hellyer, P. 2001)

•Reputation - High quality and product variety (Karaliopoulos

and Amat)

SWOT Analysis-STRENGTHS

(Marks and Spencer 2012)

•Owned its own brand and products

(Marks and Spencer 2012)

•Shopping environment

•Customer services

(Andrews and Martin, 2011)

•Healthy eating

(Marks and Spencer 2012)

•Internal training

(CSL Cartoonstock ,2012)

•3 operating divisions: - UK Retail C

- International Retail

- Financial Services

(Marks and Spencer 2012)

•Lack of newness (The Telegraph, 2006)

•Slow to change

SWOT Analysis-WEAKNESSES

•Clothing : Does not really reflect younger women’s taste (Bums, 2008)

(Fashionologie ,2011).

SWOT Analysis- OPPORTUNITIES•Market extending•Introduce QR Code – is more convenient to the

customer

•Keep renewing their women wear range

SWOT Analysis- THREATS

•Strong competitors (For Food and Clothes) - food (e.g. Waitrose)

- clothes (e.g.Debenham) •Economic downturns•Shifts in consumer behaviours

(Inkcinct, 2012)

Competitors analysis

Competitor 

Classification

Waitrose

(for Food)

Next

(for Home and Clothes)

Debenhams

(for Home and Clothes)

Product variety Waitrose Food

• Womenswear• Menswear• Childrenswear• Petite• Home• Maternity

• Womenswear• Menswear• Childrenswear• Weddings

wear• Home wares

Targeted customer/Segment

Household Middle class

• Middle class • Middle class• People who go

for weddings

Positioning(Image to customer)

Upmarket

(Waitrose 2012)

Stylish clothes

(Next Plc.2011)

Department store -Wide

variety of products

(Debenhams Retail plc2012)

Competitor Classification

Waitrose

(for Food)

Next(for Home and

Clothes)

Debenhams(for Home and

Clothes)

Size/ Market share (overall)

2724.2% (2010) 4.4% (2011)

6802.5%(2010)4.0%(2011)

228Increased by 4.5%

No. of Shop in Dubai

2 13 6

strengths • catering for the specific needs of the local communities

• Relatively high number of stores

• Wide variety of product with 19 designers

• Weddings wear• consider of

cultural requirements

weaknesses Low diversification

Only have 2 supermarkets in Dubai(Waitrose 2012)

No supermarket

(Next Plc.2011)

No supermarket

(Debenhams Retail plc2012)

Competitors

Strategic thrust

  Market Penetration Market

PenetrationProduct

development (different design on

products)Strategies Market segment

expansion (more stores in the Middle East)

Positioning (stylish)

Differentiation focus on leading department stores group(Regional Franchise)

response pattern

continues to pursue further stores in the Middle East region

(Waitrose 2012)

Building more new stores in

Dubai (past experiences)

(Next Plc.2011)

Jenny Packham joins Designers

at Debenhams in Feb 2012

(Debenhams Retail plc2012)

Competitor 

Classification (for Food)

Next

(for Home and Clothes)

Debenhams

(for Home and Clothes)

Competitors analysis

M&S’ Competitive Advantages- 3 sectors (Food, Clothes and Home)- Product variety and High quality

Competitive Disadvantages & Create Differential advantagesOnly 8 stores in Dubai ExpandPositioned by classic, old-fashioned clothes Product repositionProduct lack of creativeness Produce customized productNarrow age range of target market Widen by targeting teenagers

Suppliers

Trade Clearing House

•One of Britain’s leading wholesale clothing

companies (Esources, 2012)

•Stocking a massive range of Branded and Ex-Chainstore Fashion Clothes including babywear , childrenwear and ladieswear. (ibid.)

•Hold the children’s licensed character clothing including Disney and Warner Bros. (ibid.)

•Manufacture products for many leading famous brands, contract packers and industry worldwide. (OPM Group, 2012)

•Services provided (ibid.): - Labels and packaging Pressure Sensitive Labels Film Thermal Printing Services

OPM Group

It’s Quality Management System is certified to ISO 9001-2000 standard

•It’s Quality Management System is certified to ISO 9001-2000 standard. (ibid.)

•The manufacture of self-adhesive labels, flexible food packaging and other packaging materials are certified to BRC/IOP category B food contact. (ibid.)

(OPM Group, 2012)

Marks and Spencer Segmentation

•Profile•Behavioral•Psychographic

Marks and Spencer Targeting

•Introduction of takeaway food in Dubai•Introduction of custom bags in Dubai•Introduction of new Marks and Spencer range named Red harbor.

Marks and Spencer Positioning

Marketing Mix and Marks and Spencer's

Marketing Mix

•Clarity•Consistency•Credibility•Competitiveness

References

• Al Abed,I. and Hellyer, P. (2001). Environmental Development and Protection in the UAE. In Aspinall, S.(Ed.), United Arab Emirates–a new perspective.(pp277-304). UK: Bookcraft.

• Ali & Partners (2004). Doing Business in the U.A.E. Middle Eastern Laws - U.A.E. Retrieved March 3rd, 2012 from http://www.mideastlaw.com/middle_eastern_laws_uae.html

• Andrews, E. and Martin, A. (2011, September 13th). Sorry about your sandwich... but here's the dinosaur you asked for': M&S sends cheeky customer a smiley drawing. Mail Online.

• Bums, P. (2008). Corporate Entrepreneurship: Building the Entrepreneurial Organization (2nd Edition). Palgrave Macmillan.

• CSL Cartoonstock (2012). Retrieved February 29th ,2012 from : http://www.cartoonstock.com/directory/s/skilled_worker.asp

• Danielli, D. (2005, July 21st). OPM joins M&S supplier roster. Retrieved February 29th ,2012 from : http://www.printweek.com/news/486974/OPM-joins-M-S-supplier-roster/?DCMP=ILC-SEARCH

References• Debenhams Retail plc(2012). Debenhams International. Retrieved

March 3rd, 2012 from: http://www.debenhams.com/webapp/wcs/stores/servlet/CategoryDisplay?storeId=10001&catalogId=10001&langId=-1&userType=G&categoryId=63447

• Esources (2012). Retrieved February 29th ,2012 from : http://www.esources.co.uk/supplier/153/

• Fashionologie (2011). See the Entire Marni For H&M Ad Campaign. Retrieved February 29th ,2012 from : http://www.fashionologie.com/Complete-Marni-HM-Ad-Campaign-Photos-21875506?page=0,0,6#5

• If it ain't broke: why Marks & Spencer is opting for an old-fashioned Crimbo. (2006, November 12th). The Telegraph.

• Inkcinct. (2012). Retrieved February 29th ,2012 from :http://www.inkcinct.com.au/web-pages/australian/economic-business-ir/2008-economic-business-ir.htm

• Karaliopoulos , G. and Amat, O. The Marks and Spencer Case• The Central Intelligence Agency (2012). CIA - The World Factbook.

Retrieved March 3rd, 2012 from: https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html

• Marks and Spencer (2012). 125 Years-Timeline. Retrieved February 29th, 2012 from: http://corporate.marksandspencer.com/HTML/index.html#/2000s

• Marks and Spencer (2012). About Us – Company Overview. Retrieved February 29th, 2012 from: http://corporate.marksandspencer.com/aboutus/company_overview

• Marks and Spencer (2012). About Us – Where We Are. Retrieved February 29th, 2012 from: http://corporate.marksandspencer.com/aboutus/where/uk_stores

• Marks and Spencer (2012). Annual Report 2011. Retrieved February 29th, 2012 from: http://annualreport.marksandspencer.com/financial-review/international.aspx

• Marks and Spencer (2012). Retrieved February 29th, 2012 from:http://corporate.marksandspencer.com/home

• M&S Money (2012). Retrieved February 29th, 2012 from: http://money.marksandspencer.com/

• Marks and Spencer plc. (2012). About us. Retrieved Feb 23rd, 2012 from: http://corporate.marksandspencer.com/aboutus/where/uk_stores

• Marks and Spencer UAE L.L.C (2012). PLAN A in the Gulf. Retrieved March 3rd, 2012 from: http://www.marksandspencerme.com/content/page2.aspx?pName=Plan_A

References

• Marks & Spencer UAE L.L.C (2012). What’s new-Ultimate Magical Wear. Retrieved March 3rd, 2012 from: http://info.marksandspencerme.com/whatsnew/magic-wear.html

• Mehmood, F. (2010, Nov 03rd) E-commerce spending survey toped by UAE. TopNews Arab Emirates. Retrieved March 3rd, 2012 from: http://topnews.ae/content/21738-e-commerce-spending-survey-toped-uae

• Michigan State University (2012). United Arab Emirates: Government-Principal Government Officials Retrieved Feb 25th, 2012 from: http://globaledge.msu.edu/countries/united-arab-emirates/government

• Middlesex University Dubai (2009). About Dubai. Retrieved Feb 25th, 2012 from: http://www.mdx.ac/Aboutdubai.asp?Link=About%20Middlesex%20University%20Dubai&SubLink=About%20Dubai

• Miller, C. (14th Nov 2008). Arabian bites. Retrieved Feb 25th, 2012 from: http://www.johnlewispartnership.co.uk/media/e-zine/newsroom/jlp-e-zine-14-november-2008-arabian-bites.html

• Next Plc.(2011). Business overview. Retrieved March 3rd, 2012 from: http://www.nextplc.co.uk/about-next/business-overview.aspx

• OPM Group (2012). Retrieved February 29th ,2012 from : http://www.opmlabels.com/index.htm

References

• UAE Country Report. (Jan 01, 2012).U.S.A.: The PRS Group, Incorporated.

• Waitrose (2012). Waitrose Factsheet. Retrieved March 1st, 2012 from: http://www.waitrose.presscentre.com/ImageLibrary/detail.aspx?MediaDetailsID=30240

References

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