Marks & Spencer Plc is going to enter a new market for their biscuit section in Brunei Darussalam. Brunei Darussalam is a country in South East Asia with great market potential as they have a big amount of GDP. They are going to make an innovation in order to attract the costumer in Brunei. The innovation they are willing to make is making a new biscuits flavour that suits Bruneian. To enter this new market M&S chooses to do indirect-exporting, by selling their biscuits to an independent retailer in Brunei.
CHAPTER II PRODUCT INTRODUCTION
A. Product Description Marks and Spencer Plc (M&S) is a company established in 1884 and has over than 1000 stores worldwide. The type of products that M&S sell are goods, which in this case are biscuits. Marks & Spencer’s Food best known for the quality ingredients and focus on food safety. All of their food and soft drink are free from artificial colors and flavourings, free from monosodium glutamate (MSG) or aspartame and use only free range eggs in all the products. Also the first UK retailer to remove hydrogenated fats from all M&S’ Food products, reducing the salt content of their products ahead of industry targets. M&S’ Food have been recognized by Greenpeace and the Marine Conservation Society for the effort to fish responsible and protect endangered species. Therefore, quality is one of the customer values that they offer. Not only quality, but also the value of trust they offer. As stated, the company was established back in 1884 with over than 1000 stores worldwide, and does still exist in the market. This means, they already gained trust from their customers. M&S offer a wide variety of biscuits, such as Marks and Spencer Malted Milk Biscuits, Marks and Spencer Rich Tea Fingers, Marks and Spencer Digestive Bisuits, Marks and Spencer Custard Creams, Marks and Spencer Ginger Snaps, etc.
Figure 2.1 Marks & Spencer biscuit selection
B. Target Market Geographic : Urban Demographic : - Age = 25 - 40 years old - Sex = Male and Female - Social Grade = B - Lifestyle = Busy, Sophisticated, Healthy C. Marketing System In a marketing system, M&S act as the Industry as they are the seller. Hence, the market is referred to their target market as they are the ones who purchase the products. As M&S supply goods to the customers, they also receive money from their customer. M&S use various tools for their marketing communication in order to communicate with their customers, such as M&S magazine, billboard, posters, gift vouchers and also interactive website. This communication process includes giving costumers information regarding their latest offers, range of products and price, as well as their store location. The customers also supply information to M&S by giving feedback through M&S website. This information may contains complaints, suggestions and various types of queries.
Figure 2.3 Marks & Spencer’s website
Figure 2.4 Marks & Spencer’s gift voucher
Figure 2.5 Marks & Spencer’s Poster, magazine and billboard
Figure 2.6 A Simple Marketing System
C. Marks & Spencer’s Structure of Flow in a Modern Exchange Economy
Figure 2.7 Marks & Spencer’s Structure of Flow in a Modern Exchange Economy
Five basic markets and their connecting flows are shown in Figure 2.7. Manufacturers go to resource markets, buy resources and turn them into goods and services, and sell or deliver finished products to intermediaries, who sell them to consumers. For Marks & Spencer’s biscuits, the resource markets are dairy farms and other kinds of farms that produce biscuits ingredients. As for the manufacturers, Marks & Spencer has their own manufacturing factories in the UK but also supplying from other manufacturing factories across the UK and Italy. The finished products are then sent to Marks & Spencer stores worldwide as intermediaries to then sell to final buyers or consumers. Consumers sell their labor and receive money with which they pay for goods and...