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Marketing plan of Marks and Spencer -Dubai

Chan Ka Wing Giovanna Chong 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 UKs 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

Political Economic Socio Cultural Technological Legal Ecological

Factors

Ecological Factors

Economic Factors

Marks and Spencer in UAELegal Factors

Socio cultural Factors

Technological

Factors

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 StateUniversity2012)

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-culturalAge structureAge Structure in the U.A.E 0-14 years 15-64 years >65 years Percentages Number of Male 537,925 2,968,958 30,446 Number of Female 513,572 1,080,717 17,046

Sex Ratio 1.05 males/female 2.75 males/female 1.77 males/female

20.4% 78.7% 0.9%

Figures from Central Intelligence Agency(2012)

PESTLE Analysis- Socio-cultural 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 StateUniversity2012)

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)

SWOT Analysis-STRENGTHS Reputation - High quality and product variety (Karaliopoulos and Amat)

(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

- Financial Services

- International Retail

(Marks and Spencer 2012)

SWOT Analysis-WEAKNESSES Lack of newness (The Telegraph, 2006) Slow to change Clothing : Does not really reflect younger womens 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)

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

(Inkcinct, 2012)

Competitors analysis

Competitor

Waitrose (for Food)

Next (for Home and Clothes)

Debenhams (for Home and Clothes) Womenswear Menswear Childrenswear Weddings wear Home wares Middle class People who go for weddingsy

Classification

Product variety

Waitrose Food

Womenswear Menswear Childrenswear Petite Home Maternity Middle class

Targeted customer/ Segment Positioning (Image to customer)

y y

Household Middle class

y

Upmarket(Waitrose 2012)

y

Stylish clothes(Next Plc.2011)

Department store -Wide variety of products(Debenhams Retail plc2012)

CompetitorsCompetitor Classification Size/ Market share (overall) No. of Shop in Dubai strengths Waitrose (for Food) 272 4.2% (2010) 4.4% (2011) 2 catering for the specific needs of the local communities Next (for Home and Clothes) 680 2.5%(2010) 4.0%(2011) 13 Relatively high number of stores Debenhams (for Home and Clothes) 228 Increased by 4.5%

6 Wide variety of product with 19 designers Weddings wear consider of cultural requirementsy

weaknesses

y y

Low diversification Only have 2 supermarkets in Dubai(Waitrose 2012)

y

No supermarket

No supermarket

(Next Plc.2011)

(Debenhams Retail plc2012)

Competitor(for Food)

Next

Debenhams

Classification

(for Home and Clothes)

(for Home and Clothes)

Strategic thrust Market Penetration Market Penetration Product development (different design on products)

Strategies

Market segment expansion (more stores in the Middle East) y continues to pursue further stores in the Middle East region(Waitrose 2012)

Positioning (stylish) Differentiation focus on leading department stores group(Regional Franchise)y

response pattern

Building more new stores in Dubai (past experiences)

y

Jenny Packham joins Designers at Debenhams in Feb 2012

(Next Plc.2011)

(Debenhams Retail plc2012)

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

Competitive Disadvantages & Create Differential advantagesOnly 8 stores in Dubai Expand Positioned by classic, old-fashioned clothes Product reposition Product lack of creativeness Produce customized product Narrow age range of target market Widen by targeting teenagers

SuppliersTrade Clearing House

One of Britains leading wholesale clothing companies (Esources, 2012) Stocking a massive range of Branded and ExChainstore Fashion Clothes including babywear , childrenwear and ladieswear. (ibid.) Hold the childrens licensed character clothing including Disney and Warner Bros. (ibid.)

OPM Group Manufacture products for Its Quality Management many leading famous certified to ISO System isbrands, contract packers and industry worldwide. (ibid.) 9001-2000 standard. (OPM Group, 2012) The manufacture of self Services provided (ibid.):food adhesive labels, flexible Its packagingand System is certified to ISO 9001-2000 standard Quality Management packaging - Labels and other packaging materials are Pressure Sensitive Labels certified to BRC/IOP category Film B food contact. (ibid.) Services Thermal Printing(OPM Group, 2012)

Marks and Spencer Segmentation

Profile Behavioral Psychographic

Marks and Spencer TargetingIntroduction 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 Emiratesa 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-supplierroster/?DCMP=ILC-SEARCH

References Debenhams Retail plc(2012). Debenhams International. Retrieved March 3rd, 2012 from: http://www.debenhams.com/webapp/wcs/stores/servlet/CategoryDisplay?storeI d=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-Photos21875506?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/austra