Major M&S Divisions in 1988

Firm Infra Structure

Human Resource management

Technology Development

Procurement

MARGIN

48% textile

Relative Market Share Position

Ind

ust

ry S

ale

s G

row

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ate

BCG matrix

40% food & 12% housewares

Pro

ble

m

UK market is getting saturated and expansion efforts had been inadequate to keep pace with the growing range of Marks and Spencer goods.

“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.”

Market leader Market Challenger

Niche Market Follower

High

Low

Pro

duct

Early LateMarket Entry

The firm with the largest market share is the market leader. That means most of the consumers consumes its product or service. The market leader usually has the highest marketing expenditures, distribution, price changes, and new product innovations. This company is at top position it set the trends and all the rivals tries to compete with this market leader.

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 Children's wear (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

ExistinExisting g

NewNew

Exis

ting

Exis

ting

New

New

Target Market SegmentTarget Market Segment

Reta

il F

orm

at

Reta

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orm

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Proposed strategy: Market Expansion

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.

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.

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

CONCLUSIONCONCLUSION

In order to sustain profitability M&S should

pursue market expansion strategy to exploit

opportunities in worldwide markets as natural

limit of growth in few countries is completed.