Situation Analysis of International Marketing Environment (Marks and Spencer in Spain)

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Situation Analysis of International Marketing Environment

MKT362

Individual Assignment

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Written by: Ksenia Samsonova

For: Richard Cawley

Date: 25/10/2010

Table of Contents

1. Terms of Reference3
2. Procedure3
3. Findings3
3.1 An analysis of the marketing environment for Spain5
3.2 A SWOT analysis of Marks & Spencer PLC for Spain6
4. Recommendations9
5. Appendices11
6. Bibliography20

1. Terms of Reference

This report will be carried out by Ksenia Samsonova, and it was prepared for Mr. Cawley. The main aim of this paper is to give a situation analysis of Marks & Spencer in Spain from a view of a marketing consultant. This assignment will also demonstrate an analysis of the marketing environment for Spain and also a critique of any models that was chosen to use to construct the situation analysis for Marks & Spencer in Spain. This report includes three parts:  firstly, it analyses the macro-environment and micro-environment of M&S, secondly, it shows the aspects of SWOT. The paper is required on the twenty fifth of October 2010.

2. Procedure

There was used a secondary research so that to create this individual report paper. The secondary data that was used in this document was found in the required textbook, in the seminar material, in journals and in the Internet. For the full list of all sources, please see the enclosed references and bibliography.

3. Findings

M&S is an international company, which spreads through Europe, North America and Asia, it sales clothing, footwear, gifts, house appliances, and food. At Present Marks and Spencer has over 450 stores located throughout the UK, this includes the largest store at Marble Arch, London. (corporate.marksandspencer.com/?intid=gft_company, 2010) In addition, the Company has 150 stores worldwide, including over 130 franchise businesses, operating in 30 countries. (Ibid) On the background of the company it is important to mention that Marks and Spencer (M&S) of Britain is a general retailer that sells clothes, gifts, home furnishings, and foods under the St. Michael trademark in the UK, Europe, the Americas and Far East. The company also operates financial services segment, which accounted for about 3% of the company’s 1998 profits. Marks & Spencer started as a stall in 1884 by Michael Marks in the Leads market. In addition, its philosophy is to sell durable merchandise at a moderate price. It has merchandise made to its specifications. Therefore, by 1901, the company acquired 35 Outlets as well as a new partner, which is Tom Spencer. (corporate.marksandspencer.com/aboutus, 2010) By 1949 all the company’s stores carried mostly private label products produced by British. Moreover, with nearly 300 stores in the United Kingdom, M&S is the country’s largest retailer: it holds 17 percent of the UK clothing market. For the reason that M & S is so well known, it spends little on advertising, decorates its stores austerely, offers very little personal service and provides no dressing rooms or public bathrooms. Other than that, the company admits that the percentage has slipped to about four-fifths and will likely fall further as its British suppliers move more of their production abroad. (bizcovering.com/major-companies/a-case-study-on-marks-and-spencer/, 2008)

3.1 An analysis of the marketing environment for Spain

According to Euromonitor, Spain is in deep economic crisis and although Spaniards began suffering from the economic crisis later in 2008, it hit strongly, especially in terms of unemployment which according to INE, the Spanish National Statistics Institute, reached almost 18% in 2009. This has rapidly translated into a strong drop in consumption levels and high level of savings. As a result the amount of money available for non-essential goods has dropped, dragging down the overall performance of retailing. (Euromonitor, 2010)

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