T

E

A

M

Sam Englman, Zittong Zhang, Sijia Liao, and Rachel Wittreich

To be uniquely inspirational 21st century

retail organization in the regions we

choose to operate

To be the standard

against which others are measured

(benchmarking)

Quality

Service

Innovation

Trust

Mission :

To provide a retail experience which exceeds our

customers' expectations in terms of customer

service, product range, quality and value. To

adequately reward our staff, generate a

satisfactory return for our shareholders, and to

make inspirational quality accessible to others.

Environmental Sustainability

“Look Behind the Label”

- Ethical & Environmental friendly aspects of their clothes:

- Fairtrade products

- Sustainable fishing

- Environmental friendly textile dyes.

Charity Work:

-Breakthrough Breast Cancer

- Oxfams clothes recycling intuitive

- Donation to hospitals

Plan A

Increase environmental suitability of the business.

Key social and environmental challenges M&S face:

-Climate change

- Waste

- Sustainable raw materials

- Fair partnership and health

International (1973)First international expansion into Canada. The France, then the Philippians, Netherlands, etc.

Beginning (1894)Michael Marks and Tom Spencer enter into a partnership to create Marks & Spencer.

7

M&S Bank (1985)Assists in banking, credit and insurance

products, and internet banking.

Online Presence (mid-2000)Online shopping and delivery

M&S Simply Food (2001)Sell primarily food but also carry small

selection of general merchandise.

Plan A (2007)An initiative to become an even more sustainable and environmentally friendly corporation.

Outlet Stores(2011)50 outlet stores and growth expansion plans for the future.

Continues to GoInternational

• Vast Network of stores and locations.

• Well known products

• Known Brand Name

• Managing relationships with banks.

• Strong M&S Brand

• Strong retail and finance

• Strong quality and trust

• High quality management team.

Threat

- Rising labor costsOpportunity

- Increasing presence in fast

growing international

markers.

- Trends towards online

purchasing

Weakness- Bad publicity

- Significant reliance on UK

market

Strength

- Strong brand image

- Variety of Products

- Large number of stores,

outlets, and multichannel

approach. .

This segmentation has to do with the:- Lifestyle- Personality

Psychographic

Segmentation

This segment has to do with the:

- Demographic- Socio-Economic

Variable

Profile Segmentation

This segment has to do with the:

- Benefit Sought- Purchasing Occasion

- Usage- Perception and Belief

Behavioral

Segmentation

RivalsHigh

- Food: Tesco, Asda and

Sainsbury’s

- Apparel: Topshop, Next, and

Zara

Substitutes

High

Food: Waitrose Apparel: Peter

Johns and John Lewis

Threats of New Entries

Low- Takes enormous capital

investments to set up M&S

has strong brand names

and high customer loyalty

Supplier Power

Low- Many suppliers want to join

M&S

- M&S sells own branded

products

Buyer Power

High- Low switching costs

Retail Industry

Change in industry (long term growth

rate)

Increase Globalization

Emerging Internet

capabilities & application

Changing societal

concerns, attitudes, &

lifestyles

Slide 14

• Innovation: Core value. Innovate sustainable technology

• Employee skills: Offer a comprehensive training and performance coaching program. And also support employees’ needs

• Customer satisfaction: increased by 18%

• Customer loyalty: M&S credit card, loans, gift card.

• Maximize profit: Underlying profit before increased 6.1%. Gross margin on General merchandize increased.

• Reduce cost: manage cost tightly with aim to keep profitability

Financial Perspective

Customer Perspective

Innovation and

Learning Perspective

Internal Business

Perspective

Decision convenience, access convenience,

transaction convenience, benefits convenience,post-benefit convenience

Customer Service

unique merchandise that appeal to targetcustomers

- Enough merchandise.

Merchandise

Since much of the shopping experience is rather mundane, those

retailers who can distinguish themselves with unusual and

exciting store atmospherics add value to the shopping experience.

- Design, ambience, music, color, scent

Shopping Experience

Rivals M&S

Market:

• M&S existing customers plus Stella McCartney’s customer

• Focused on a broader global market.

Seeking to differentiate the company’s

product offering from rivals’ with superior

attributes that will appeal to a broad

spectrum of buyers

High

Broad

Low

Narrow Geographic Market Scope

Price/

Perc

eiv

ed

Qualit

y a

nd

Image

M&S

Tesco

PLC

Next

PLC

ASDA

Marks & Spencer

Tesco PLC

Next PLC

ASDA Group

Stella McCartneyDesigner

- Has established 17 freestanding stores

- Her collection is distributed in 50 different countries and 600 wholesale accounts including specialty stores and department stores.

Stella McCartney

- 330 stores worldwide - Brick and Mortar stores in

59 territories- Ecommerce (7 million

registered users)

Marks & Spencer

Products Products

Environmental &

Sustainable

Business

Practice.

- Plane A

- Behind the Label.

CultureEnvironmental &

Sustainable Fashion:

- Green Designer of the Year (2008)

- Organic Style Women of the Year (2005)

Culture

- Clothing

- Perfume

- Lingerie

- Skin Care

- Athletic wear

- Kids clothing

- Clothing

- Lingerie

- Skin Care

- Kids

Clothing

- Food

- Furniture

- Accessories

PROJECT 01

Examine,

Define,

Forecast, &

Decide

Define whether the

company synergizes

with our company.

Define the intended

target group.

Forecast next years

fashion.

Choose which designs

you want to sell from

McCartney’s line.

02Negotiate

Determine and agree

on the terms of the

licensing agreement.

(Royalty Rate)

03Create the for P’s

Product: How will you familiarize customers

with the new product and its qualities.

Price: Determine price of products,

taking into account royalties and other

rates.

Promotion: Social Media, Websites, etc.

Place: Create displays in stores.

04 05

Introduce, Implement, &

Track

Introduce and educate employees with new

products.(eco-friendly, innovative, quality,

etc.)

Implement new designs into a select of

high traffic stores.

Track the success of the product

(financially, customer loyalty, etc.)

Launch

Depending on the success of brand

and product, expand into more

stores.

Development of exclusive lines

New Marketing Campaign

Indication of good strategic fit

5-9% Sales growth

Launch in UK then

internationally

Adding more designers to provide

exclusive designs.

Step 1

Improve brand image

Step 2

Add value to customers.

Step 3

Expand Stella McCartney line to additional retail departments.

Step 4

• Loss of initial costs and inventory losses.Partnership

Failure

• Risk of added cost to continue partnership in the event of success.

Partnership Success

• Luxury goods are highly market sensitive

• Watch market trends closely to diminish negative effect.

Large macro-economic risk

-2.5% retail revue growth

Gross Margin 6.79%

Net income margin 4.66%

Debt to Equity 1.56x

Return on Assets 5.87%

Quick Ratio 0.31x