Marks & Spenser entered the Chinese market without proper research, neglecting cultural differences. This led to several issues: an unaffordable wrong pricing strategy that positioned the brand only for older customers, and stores located far from target segments. Poor market analysis also resulted in unsuitable products, mannequins, and promotions. To correct this, Marks & Spenser reformulated their strategy through local employment and deep market analysis. Changes included Asian-fit sizes, culturally appropriate designs, affordable prices and promotions, and better store locations near target segments.

1. Marks & Spenser
enters China
Assignment (1) – international marketing
Name: Haitham Mohamed Ibrahim

2. Introduction
• Without proper market research M&S started to enter
the Chinese Market, as well they neglected the cultural
differences between the UK & Chinese markets
• It led to many issues, like:
1. Wrong market strategy
2. Failed to attract customers
3. Branding problems
4. Poor market analysis
5. Inventory and logistics issues

3. Main Problems
• Affordability :
the wrong strategy led to wrong pricing strategy , unaffordable to most of the
Chinese even the food products were very expensive.
• Customer perception:
the customers in China perceived the brand as it’s for the 40 to 50 years old
people. It’s because the wrong pricing strategy and also the bad branding and
positioning. Branches were faraway and surrounded by senior citizens.
• Market entry and Launch:
the company wasn’t well prepared in terms of; collections, customs, ..etc that
gave bad first impression there. No specific entry marketing strategy.
• Poor Market analysis:
they didn’t measure the customer awareness about the products types, there
were no responsiveness towards merchandising and sizing.
Mannequins were western looking.
Bad management for promotional materials.

4. UK vs Chinese Markets
Item Chinese Market UK Market
Climate Extremely Divers Moderate
Laws/Regs High Corruption Low Corruption
Values Power distance Individualism
Buying Behavior Brand Appeals
Western Goods= High Quality
Service , Quality, Convenience
Environment Pollution Recycling
Economic System Central Economy Market Economy

5. Corrective Actions
1. Strategy Reformulation:
Product:
Sizing management “Asian Fit sizes”
Change Design and tailoring through local provider
Price:
Study the average income of the targeted segments, and
compare the prices with the direct competitors “ZARA”
Promotion:
Using the cultural related messages, oriental mannequins,
Local influencers, increase products and brand awareness
Place:
Re-plan the distribution plan and select better places for the
outlets near to the targeted segments

6. Corrective Actions “continued”
2. Local employment: to get the right sizing and pricing.
3. Deep market analysis through:
Surveys, Focus groups, ..etc
4. Continuous product customization and market tests “learning
by doing”
5. “China is not a country, it’s a couple of countries, and it should
take step-by-step approach there” Marc Bolland- M&S CEO

7. Haitham M Ibrahim
International Marketing assignment