A new deal coming through so stay focus

Ume Kalsoom

Ayesha Shamshad

Eema Hassan

Saad Munir

HurraH Creativity

MARKS & SPENCER

The ground of marks and Spencer were laid back in 1884 by lord Marks who started selling in small town markets of Northern England.

Marks & Spencer is the British largest retailer with four main divisions:

The target market of Marks & Spencer is middle to high class consumers in major cities.

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.

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

Market leader Market Challenger

Niche Market Follower

High

Low

Pro

duct

Early LateMarket Entry

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

SO StrategiesIncrease in specialist stores/outlets using the recognition of the MARKS & SPENCER brand Use recent popular MARKS & SPENCER labels to develop sub-brands under MARKS & SPENCER brand umbrella. Possibility of use of celebrity endorsement.Increasing global presence to capture large target market world wide.

WO StrategiesUse of designer labels both internal and external to attract younger audienceWorking more on e-commerce in order to curtail costs and increase online shopping.

THREATS- Increased Competition in all MARKS & SPENCER business areas- Prior inability to adapt to changing customer needs

ST StrategiesIncrease diversity of product range in order to stand out in the cut-throat competition.Using the information system to be pro-active in adapting to the customers need.

WT StrategiesRefurbish Childrenswear (7-14 yrs) in reaction to increased competition to generate long term profits in this growth market

Market penetration

Diversification

Market expansion

Retail format development

Existing New

Existi

ng

New

Target Market Segment

Reta

il F

orm

at

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.