➢ Executive Summary .....3
➢ Situational Analysis.....4
o Entering Austria.....4
o Key Customer Groups.....4
➢ Marketing Objectives .....7
➢ Strategy .....8
o Competitive Strategy.....8
o Strategic Position.....9
o Cultural Positioning.....10
o Entry Mode.....10
➢ Marketing Mix.....13
o Promotion .....15
o Physical Evidence.....16
o Relationship Management.....18
➢ Budget .....19
➢ Monitoring and Controlling.....20
➢ Bibliography .....21
This ‘international marketing plan’ is complied by M&S’ Marketing Consultants team, Heinrich Bayern, Rasha Budagher, Khaled Bader, Qanass Al Aulaki and Nada. The report will detail an intensive marketing plan of the expansion of a wholly-owned M&S subsidiary in Austria by 2013.
Throughout this report Marks and Spencer will be referred to as M&S. Having evaluated a situational analysis of expanding into Austria, M&S marketing consultants have laid out the appropriate strategy and entry mode in line with M&S’ corporate and marketing objectives, to enter the Austrian food and retail market. Furthermore, an analysis of the marketing mix is presented to highlight the steps M&S will have to take to succeed in Austria.
Marks and Spencer Group PLC (M&S) is undoubtedly one of the UK’s most powerful and visible retailers. M&S is in the business of food and general merchandise, including home products and clothing, and is thriving in the retail industry.
We believe that the expansion to Austria will lead to a similar success in Europe in the foreseeable future.
In order to succeed in Austria in the in the short and medium run we are planning to have the flagship store operational by November 2013 to start directly into the Christmas season. At time of launch the store will have to present M&S from its best side in terms of staff, merchandise mix and marketing efforts. The intention is to reach a ROCE of 15% after the first two years of operations to determine whether or not to expand further into Europe. To accomplish this, awareness should be raised to 60% in the applicable market segment and the revenue for the first year is budgeted at €15million and should steadily rise in the future.
The success of the subsidiary will strongly depend on the quality of the marketing campaign and consequently on the size of the marketing budget, which is why we recommend to spend enough money to outperform the competition in the market.
We also recommend to give the subsidiary enough freedom to make decisions by themselves based on their experience in the Austrian market without the direct involvement of M&S headquarters.
Lastly it will be wise to start using local producers for food products from the start to emphasize M&S environmentally friendly approach as well as bringing financial benefit to local businesses to generate goodwill amongst suppliers as well as customers. Situation Analysis
Austria’s capital Vienna has been selected to host a new M&S flagship store in 2013. The reasons for choosing Austria as a future market for M&S is mainly due to the expected success that M&S’ department store concept will have in the local market.
Secondly the flagship store in Vienna will also be a valuable tool to analyse the German speaking part of Europe closely in terms of consumer behaviour and build relationships with suppliers. This will help to...