Innovation from a Retailer’s Perspective

FIT FOR PURPOSE, FIT FOR BRAND

Simon Allison and

Claire Hughes

Offer customers, under the company’s brand name a selected range of high quality, well designed and attractive merchandise at reasonable prices which represent good value

•Our Principles

FIT FOR PURPOSE, FIT FOR BRAND

Simplify operational procedures so that the business runs efficiently

Foster good human relations with staff, customers and suppliers

•Lord Marcus Sieff, 1951

• SALES 08/09 - £9bn PBT 08/09 - £620m

• 640 Stores in the UK• UK Largest Clothing Retailer

• 11.1% Market Share• 4% share of UK Food Market

•Background

FIT FOR PURPOSE, FIT FOR BRAND

• 4% share of UK Food Market• International Business

• 8% of Group Turnover with 257 stores in 36 Countries.

• 16 Million visitors to our stores each week• Major investment programme in systems for

efficiency and growth

M&S Timeline

FIT FOR PURPOSE, FIT FOR BRAND

FIT FOR PURPOSE, FIT FOR BRAND

FIT FOR PURPOSE, FIT FOR BRAND

INNOVATION CAN COME FROM REDEFINING YOUR OFFER

FIT FOR PURPOSE, FIT FOR BRAND

FIT FOR PURPOSE, FIT FOR BRAND

Key Innovation Themes

• Efficiency/Value

• Quality/Consistency

• Taste/Flavour

We are prioritising resource on Innovation in the following areas:

FIT FOR PURPOSE, FIT FOR BRAND

• Health/Nutrition

• New Markets/Opportunities

• Ethics/Trust

We are prioritising resource on Innovation in the following areas:

Key Innovation Platforms

FIT FOR PURPOSE, FIT FOR BRAND

• Science Knowledge

• Network

• Strategic Partnerships

Making it happen

FIT FOR PURPOSE, FIT FOR BRAND

• Budget

• Suppliers

• External findings

GATE

Capacity building for the

Taking a theme Big Idea and

Working towards

Customers experience

Where else can we?

GATE GATE GATE

EXECUTEEXPLORE ENABLE EXPAND EXPLOIT

The Innovation Journey

FIT FOR PURPOSE, FIT FOR BRAND

building for the pipeline

Big Idea and identifying specific projects

towards delivering a product/s

experience product

we?

The aim: To create a strong flow of first to market innovations which deliver genuine differentiation

Supplier led Customer led

M&S led

New cooking Ingredient removal

Equipment Processing

Long Term Innovation at M&S

FIT FOR PURPOSE, FIT FOR BRAND

Delivering key qualities to a wide

range of added value food

Making ranges accessible to all

Making dieting effective and

sustainable ensuring customers stick to

their diet

Equipment manufacturer Supplier

M&S Customers

Cross category

M&S Category team

Processing trials

M&S Customers

Suppliers

M&S Health team

M&S Customers

Suppliers

SuppliersSuppliers

Centres Centres

NPDNPD

TechnicalTechnical

FIT FOR PURPOSE, FIT FOR BRAND

Centres Centres

Of Of

ExcellenceExcellence

Role of Science in Delivering Innovation

FIT FOR PURPOSE, FIT FOR BRAND

Science as an Enabler

FIT FOR PURPOSE, FIT FOR BRAND

Suppliers

• Strong science supporting protein as most satiating macronutrient and therefore helping to control hunger

More Hungry Typical mealProtein enriched meal

The Science

FIT FOR PURPOSE, FIT FOR BRAND

Less Hungry

Less Hungry

• Launched 32 lines – meals, salads, soups and sandwic hes

The Range

FIT FOR PURPOSE, FIT FOR BRAND

• TV ad

• In store Leaflet with menu plans & recipes

• Promotion - £1 off range

• Ranging together in store

• New website – www.marksandspencer.com/health

Launch Support

FIT FOR PURPOSE, FIT FOR BRAND

• In store décor

• M&S magazine

• PR campaign inc. local radio

Market Share

• M&S market share in healthy meals

By 10%

• Top 3 UK brands

FIT FOR PURPOSE, FIT FOR BRAND

• Top 3 UK brands

COU/Weight Watchers/SFL

PR Coverage

FIT FOR PURPOSE, FIT FOR BRAND

“This range is absolutely excellent, many thanks to all

involved in the development. For the last 2 weeks I have been eating Simply Fuller Longer

salads for lunch and the meals for dinner resulting in a reduction of 10.5lbs without any feelings of

“This product is astounding! It is delicious and lives up to its

name. Thank you for introducing it and please,

never take it off the market.”

“Just had a look at

What did our customers say…

FIT FOR PURPOSE, FIT FOR BRAND

hunger……”

“The new M&S Simply Fuller Longer range is top be praised and a valuable addition to your range.”

“First of all please let me congratulate you on the new Simply Fuller Longer range. I love it! The chicken biryani tastes great and I’m looking forward to trying the rest.”

“Just had a look at the new diet and I am

very impressed.”

SFL Diet Trials:

• 40 overweight/obese men & women

• SFL Diet for 1 month

• Free living (natural environment)

What next...

FIT FOR PURPOSE, FIT FOR BRAND

• Recording: weight, food intake, hunger and other biomarkers of health

FIT FOR PURPOSE, FIT FOR BRAND