A new deal coming through so stay focus Ume Kalsoom Ayesha Shamshad Eema Hassan Saad Munir HurraH Creativity MARKS & SPENCER
<ul><li>The ground of marks and Spencer were laid back in 1884 by lord Marks who started selling in small town markets of Northern England. </li></ul><ul><li>Marks & Spencer is the British largest retailer with four main divisions: </li></ul><ul><li>The target market of Marks & Spencer is middle to high class consumers in major cities. </li></ul><ul><li>From 1914 onwards the company made a lot of technological advancements and because of its high quality and medium prices Marks & Spencer soon associated with quality and value able by its customers. </li></ul>
Firm Infra Structure Human Resource management Technology Development Procurement MARGIN
UK market is getting saturated and expansion efforts had been inadequate to keep pace with the growing range of Marks and Spencer goods.
STEP 1: DEFINE THE BUSINESS MISSION STEP 2: CONDUCT THE SITUATION ANALYSIS STEP 3: IDENTIFY STRATEGIC OPPORTUNITIES STEP 4: EVALUATE STRATEGIC ALTERNATIVES STEP 5: ESTABLISH SPECIFIC OBJECTIVES AND ALLOCATE RESOURCES STEP 6: DEVELOP THE RETAIL MIX TO IMPLEMENT THE STRATEGY STEP 7: EVALUATE PERFORMANCE AND MAKE ADJUSTMENTS
“ Our plan is to grow MARKS & SPENCER into a world-class retailer that’s customer-focused, fast-moving and flexible. We work hard to ensure we offer only the highest quality products, service and shopping environments in all of our stores. Our brand values – quality, value, service, innovation and trust – are more important than ever. Our commitment to these values sets us apart from our competitors, and enables us to offer our customers something truly special.”
There are four major components of the situation analysis which are: Market factors Competitive factors Environmental factors Analysis of strengths and weaknesses of the firm
High Low Product Early Late Market Entry Market leader Market Challenger Niche Market Follower
STRENGTHS - High recognition of brand - Large number of outlets and high street presence - Popular designer labels/sub-brands, i.e. St.Micheal - Niche market success for food - Wide variety of products - Paternalistic relationship with employees - Geographically based divisions - Backward integration-Integration with the suppliers - Adequate information processing- EPOS WEAKNESS - Ageing customer base - Bad publicity as it is being considered as old-fashioned store. - Manual working increasing the costs. OPPORTUNITIES - Internationalization-Increasing the global presence - Increase in online shopping - Growth areas home/food/beauty - Desire for labels/ branded goods - Consumers more prepared to purchase a wider variety of products from one source <ul><li>SO Strategies </li></ul><ul><li>Increase in specialist stores/outlets using the recognition of the MARKS & SPENCER brand </li></ul><ul><li>Use recent popular MARKS & SPENCER labels to develop sub-brands under MARKS & SPENCER brand umbrella. </li></ul><ul><li>Possibility of use of celebrity endorsement. </li></ul><ul><li>Increasing global presence to capture large target market world wide. </li></ul><ul><li>WO Strategies </li></ul><ul><li>Use of designer labels both internal and external to attract younger audience </li></ul><ul><li>Working more on e-commerce in order to curtail costs and increase online shopping. </li></ul>THREATS - Increased Competition in all MARKS & SPENCER business areas - Prior inability to adapt to changing customer needs <ul><li>ST Strategies </li></ul><ul><li>Increase diversity of product range in order to stand out in the cut-throat competition. </li></ul><ul><li>Using the information system to be pro-active in adapting to the customers need. </li></ul><ul><li>WT Strategies </li></ul><ul><li>Refurbish Childrenswear (7-14 yrs) in reaction to increased competition to generate long term profits in this growth market </li></ul>
Market penetration Diversification Market expansion Retail format development Existing New Existing New Target Market Segment Retail Format
Proposed strategy: Market Expansion Market expansion is recommended for Marks & Spencer Marks and Spencer along with its existing retail format will pursue its expansion plans in different geographic regions as demand is increasing in the global market. Marks & Spencer is growing rapidly and the natural limit of growth in British is completed and these circumstances are pointing towards expansion abroad. The product lines are increasing in number to cater the emerging need of consumer and in order to keep pace with the growing range of products and different product lines, Marks and Spencer could opt for market expansion.
To expand globally and compete in a dynamic market To increase sales and profitability through continues innovation Grow business through acquisitions for fast market development Improved processes for supply chain management and CRM
Following retail mix will be used to implement the strategy: Product – own brand Price - affordable Place – distribution outlets, ecommerce Promotion – above the line (ATL) People – Well trained professional staff Process – Quick service; integrated Customer Service Physical Evidence – Good ambiance
In order to sustain profitability M&S should pursue market expansion strategy to exploit opportunities in overseas markets as natural limit of growth in UK is completed.