M&s Events and Trends

Introduction

To look into the main events and trends from the marketing environment, which are likely to impact the market over the next few years I am going to do various analysis. I am going to research the macro and microenvironments. A STEP analysis will be conducted to look at the macro environment, which includes social-cultural, technological, economical and political factors. For the microenvironment factors competitors, suppliers, customers and stakeholders will be looked at. A SWOT analysis will then be carried out. Strengths and Weaknesses will look at the internal issues and the Opportunities and Threats will look at the external issues. Then I will be looking at the strategic options available for the business.

I have chosen to look at the food department of Marks and Spencer, more commonly known as M&S Food. According to wikipedia, M&S has over 400 stores in the UK and 192 stores managed internationally (www.wikipedia.org). M&S was established in the late 1800s but the food department was non-existent until 1931. M&S focus on selling mainly food and clothing but they are always growing. The most recent addition to their stores is the technology department. In 2001 M&S started opening Simply Food stores (www.marksandspencer.com)

Macro Environment

According to an online article there is a rise in dual incomes. (Jane Musoke-Nteyafas, 2006) This means that couples will have more disposable income to spend on luxury items such as M&S food. A Mintel Report shows that people think that if you pay a lower price you get a lower quality (Mintel, March 2006). M&S prices are higher than most supermarkets such as Tesco and Asda therefore classified as a luxury product.

Peoples lifestyles are getting busier, but some people love being busy (Mintel, September 2006). This is why M&S have created many different types of stores to fit in with their lifestyles. For customers who use M&S for their weekly food shop there are out of town stores, which they provide a car park and it's easy for them to get to. There are also Simply food stores with car parks. For the busier customers there are smaller M&S shops in service stations and train stations, where they can just pick up a lunch or a quick snack. (www.Marksandspencer.com) Technology has allowed M&S to put scan it yourself tills in most stores. This is where it's much quicker for you to scan your own item and pay for it, than to go to a till and get a cashier to do it for you.

The UK has a large number of people with credit cards and there is a huge increase in debt. (Mintel, August 2000) People borrow money off credit card companies and buy themselves luxuries and tell themselves they will pay it off. Interest rates also affect how they think. If the interest rates are low they are more likely to use their credit card to buy themselves luxury products.

The government are really trying to get people to cut out salt in their diet. They have been advertising a campaign to make people aware that too much salt is not good for you. (www.bbc.com.uk, 2004). M&S have been trying to reduce the salt intake in their food since 1999. They have removed a huge percentage of salt in most of their products. Also to make it easier for you to see how much salt is in the food you are consuming its clear labelled on each packet. (www.Marksandspencer.com)

Mintel report tells us that "Awareness of the relationship between diet and health is at an all-time high"(Mintel, August 2006) Women more than men are sometimes obsessed with the food they consume. They are also influenced by celebrities. People assume all fast foods and ready meals are unhealthy. M&S have tried to make their ready meals as healthy as possible by removing additives and preservatives from their foods and reducing salt and hydrogenated fats. They have also banned genetically modified foods, Tartrazine and Mono Sodium Glutamate. (www.marksandspencer.com) They also have their fair-trade range, as people are aware of companies exploiting workers in poorer countries.

The government are also trying to get people to recycle more. They've placed advertisements on television, school children are learning about it and most housing estates get a green box where they can put all their recyclable waste such as tins, cans and bottles. People are made aware of the situation. M&S are teamed up with the government to help recycling work. They use 1,500 tonnes of recycled plastic in some of their packaging and all most of their packaging is recyclable.