Product Offering Marks And Spencer Marketing Essay

According to Hambrick and Fredrickson “a strategy is an integrated and externally oriented concept of how a firm will achieve its objectives-how it will compete against its rivals. A strategy consists of an integrated set of choices. These choices relate to five elements managers must consider when making decisions: (1) arenas, (2) differentiators, (3) vehicles, (4) staging and pacing, and (5) economic logic.(See Hambrick et all (2001) p.48)

Arenas

Product offering: Marks & Spencer is in the retail sale business, specifically clothing products, homeware and food. The company offers clothing products, such as women’s, men’s, school, and kids wear; shoes, slippers, accessories, bags, purses, jewelry, watches, socks, tights, and summer essentials; and beauty products, such as bath, body, hair care, make up, perfume, nails, and skincare products, as well as men’s and kids’ toiletries, travel and beauty accessories, and gifts.

The company also provides home and furniture products comprising bath linen and accessories, bedding, curtains and blinds, cushions and throws, domestic appliances, home accessories, kitchen and dining, lighting, luggage, rugs, small appliances, and storage products; and furniture products for living and dining rooms, bathrooms, kids, bedrooms, office, kitchen, and conservatory and garden, as well as mattresses, divans, sofas, and armchairs.

In addition, it offers various TVs and accessories; computing and gaming products, iPad, tablets, e-readers, satellite navigation and GPS, and phones and accessories; shavers and grooming products, and electric toothbrushes; domestic appliances, small appliances, and sewing machines; audio and iPods; Blu-ray, DVD, and home theater products; CDs, DVDs, and Blu-ray discs; digital photography; personal alarms; and headphones. Further, the company provides flowers and gifts that comprise books and DVDs, flowers and plants, cards, and stationery products; and food and wine gifts, gift cards, single bottle gifts, personalized cards, and wedding cakes, as well as offers procurement and financial services.

(http://www.netadvantage.standardpoor.com.online.library.marist.edu/NASApp/NetAdvantage/simpleSearchRun.do?ControlName=HomePageSearch ingrese 2/17/2013)

Presence: Marks & Spencer have 703 stores across the UK in high streets and retail parks as well as stations, airports and other locations ranging from large out-of-town and flagship stores. Additionally, M&S have over 400 international stores in 44 territories across Europe, the Middle East and Asia.

http://corporate.marksandspencer.com/aboutus/where/international_stores

Distribution Channels: Customers can shop in stores, online, by mobile or by phone. Also, Marks and Spencer deliver to 80 international destinations. (Marks and Spencer)

Market Segments: Marks & Spencer appeal to such a broad range of customers. The company uses demographic segmentation to define its consumer group according to demographic variables such as gender, age, income, occupation and lifestyle.

Marks & Spencer include in womenswear department different range of customers. For Example, Per Una sub-brand is a range of younger female’s clothing. Per Una appeals to an elegant and sophisticated woman, who like clothes made from luxurious fabrics. While Indigo Collection is a casual wear aimed at the consumer group is a woman over 30 with busy lives who like soft, feminine everyday apparel. Meanwhile, Twiggy for M&S Woman offers high fashion, affordable and stylish women’s clothes. The designs catered to everyone from those aged 18 to 80.

Read more: http://www.dailymail.co.uk/femail/article-2162599/Twiggy-M-S-Model-launches-second-collection-Marks–Spencer-time-summer.html#ixzz2NprLDDZm 

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Core Technologies: Marks & Spencer has always been an innovator in technology. In 1934 the company was the first British retailer to set up its own research laboratory to pioneer new fabrics. Thanks to its advanced textile technology laboratories and close relationships with suppliers, easy-care synthetic fibres have long been part of the Marks & Spencer clothing ranges.

http://www.marksandspencer.com.my/aboutus.php

Actually, Marks and Spencer is innovating within their stores using virtual try-on mirrors. With the virtual mirrors, consumers will be able to see how they look with any combination of clothes or accessories before making a purchase.

http://risnews.edgl.com/retail-best-practices/Marks—Spencer-Enhances-Store-Experience-with- Virtual-Mirrors84905

Marks & Spencer is trying to provide the best and most convenient shopping experience for their customers using the new technologies. As a reason the company launched the outlet on-line offering even more customers access to discounts on M&S clothing ranges. Furthermore, the company offers Style on-line Store; within this platform, customers can purchase products and use the interactive outfit builder tool. It is a complement product sample in a boutique style environment.

http://corporate.marksandspencer.com/documents/publications/2012/annual_report_2012

Vehicles

Capital Expenditure: Marks and Spencer can use capital expenditure as a vehicle because it is an instrument which companies use to enter and exit an arena. In order to invest in new stores, exploring different market demand. Additionally, Marks and Spencer use available capital to enter into other new geographical areas.

Internationally growth: Marks and Spencer’s goal is continuing to build M&S into a more internationally focused business. This is being accomplished by joint ventures and franchise. Marks and Spencer decided to rely on joint ventures to achieve their presence in India. Additionally, the Company decided to expand internationally using the business model around franchising. Some of the bigger franchise partners, whether it’s in Turkey or whether it’s in Greece or whether it’s in the Czech Republic and Poland. These business models allow the company opened 24 new stores in 2012 with their 18 global franchise partners. For example, with their partner Fiba, Marks and Spencer “opened eight new Russian stores; expanding in key locations such as Moscow and new cities, including Kazan. Working alongside Al-Futtaim, the firm grew their Middle East presence – opening five stores, including a second store in Cairo, Egypt and three in the UAE”.

http://corporate.marksandspencer.com/documents/publications/2012/annual_report_2012

Staging

Expanding Internationally: To become an international retailer with authority in the territories in which we operate and choose the right business model for each market. Marks and Spencer is growing in focus markets, with attractive opportunity as a Russia, Middle East, India & China. Marks and Spencer is increasing rapidly new stores openings through owned stores, joint ventures and franchise. Additionally, the company is investing in marketing campaigns and building awareness of the M&S brand. ( Marks and Spencer)

Differentiators

Product quality and closely monitored in suppliers: Marks and Spencer sell high quality and great value. The company operates rigorous quality management systems, which have been developed with their suppliers. These operate on a precautionary principle and are supported by a range of on-site audits and product testing. Suppliers are required to meet a range of quality, safety, environmental and social standards. (Marks and Spencer)

Offer wide selections of clothing: M&S offers a large selection of clothing in a diverse range of styles, colors and sizes. The company brings out more choice in their clothing and at the same time also more special products over, particularly the holidays’ period.

Customer Insight Unit: Marks and Spencer is in constant dialogue with customers to gain a real understanding of what they want, what they think and how they behave. Dialogue with their customers takes place through a number of different formats; holding of panel sessions across the country, monthly online questionnaires and face-to-face interviews across 40 stores. (Marks & Spencer)

Eco-Plan: Marks & Spencer launched in 2007 “Plan A, doing the right thing.” This plan pretend to work with their customers and their suppliers to combat climate change, reducing carbon emissions, use energy efficient, reduce waste, use sustainable raw materials, trade ethically, and help their customers to lead healthier lifestyles. Through this campaign, the firm becomes the most sustainable retailer in the world, just chosen by the World Retail Conference. Additionally, Marks & Spencer start with a “shwopping” working as a partnership with Oxfam. “Showpping” is a clothes recycling initiative that M&S wants customers to hang over an old item of clothing every time they buy a new one, and the raising money will go to help people living in poverty. (Marks& Spencer)

Investing in technology: M&S introduced a new point of a sale system. This gives them a benefit in scanning times, which enables them to scan customers’ purchases more quickly, but it also means that they don’t have to spend as much time training staff because the point-of-sale system is easier for them to deal with. So they get customer benefits as well as cost benefits. (Alan Stewart -Chief finance Officer, Marks and Spencer)

Additionally, Marks and Spencer launched “Style Online” which is actually a big innovation because people in a small store size they would see on a 40-inch touch screen a full range of products of their brands like Per Una, Limited, Autograph, that normally would not be for sale in that store. They’re about to see it. They’re able to build an outfit with it, and they’re capable to buy it in the store. (Marks and Spencer)

Prime locations of stores: M&S is very selectively for good stores in good locations. The stores are in premier shopping streets and retail parks as well as stations, airports and other locations ranging from large out-of-town and flagship stores. (Marks and Spencer)

Investment in employee skills: Marks and Spencer want their people to enjoy their work and feel they have all the skills they need to do their job to the best of their ability. So Marks and Spencer offer in-depth training and performance coaching, and regularly assess our people’s development needs to ensure everyone has the support to achieve their potential. (Marks and Spencer)

Economic Logic:

Capital Investment: Marks and Spencer is looking very carefully their capital investment. According, Alan Stewart, M&S Chief Finance Officer “we have tried wherever possible to get the most from the money we are investing in our store environment spend. Furthermore, M&S expect to spend somewhat less on their UK store growth and again through efficiencies. Marks and Spencer also expect their international growth to expand more quickly”.

Stage International Expansion: Marks and Spencer’s phased international expansion has allowed the company to learn about store designs, current store openings, ongoing operations and international marketing. According to Marc Bolland, Chief Executive, “M&S is learning from these markets, and we will from these markets transport some of that knowledge to other markets that we’ll go into.” Thereby, M&S is using that learning to build more international capabilities and get it more efficiently landed.

Marks and Spencer is working closely with their suppliers to deliver more innovation in quality produce. By doing this the company is capable of get better terms from their suppliers. So it has allowed the company cheaper prices and gives the customers better deals.

Business Definition

Marks and Spencer’s Mission statement is:

“Making aspirational quality accessible to all”.

Marks and Spencer is focused on middle-aged people and educated women who are between 25 and 60 years. They are characterized by having an active lifestyle.

Marks and Spencer target its products to the following groups of consumers:

-Trendy customers: It group refers a woman who wish to wear the latest fashion’s trends, but cannot afford to pay a premium price for it. Marks and Spencer offer in this group of customers its brand Limited collection, this label appeal to a woman who loves fashion and always is right in trends. Limited Collection offer latest trends, different styles, wide range of sizes, colors and its prices range from $8 – $60.

-Multiuse customers: It group denotes a woman who believes in investing in quality, wearable and sophistication apparel. This customer group is more interesting in buy smart clothing that coordinates with the other items in the range. (Marks and Spencer) Moreover, this customers group is searching for versatile wardrobe to suit in every occasion. As a result, this group of customers sees shopping as a balance between the correct products at the right price.

-Senior customers: This consumer group has experience in buying, knows and wants outfit freely to choose without losing comfort. Additionally, this group of consumers has more resources to spend on consumer items. Marks and Spencer offer in this group of customers its brand Classic. This label offers senior class apparel with the perfect balance between fashion and comfort.

Additionally, Marks and Spencer customers’ needs are equilibrium between high quality at the right price. Furthermore, the customers’ requests are wide-ranging of sizes, colors, distinctive type of styles for all occasions and different body shape. For example, Marks and Spencer have a special fit line for maternity, apparel tailored for women under 5’3” and M&S Woman plus for sizes 20 to 28. Among other, requirements are flexible return policies, dressers advice and if the customer buys online need appropriate delivery offer.

Marks and Spencer customers’ needs have been accomplished by introducing new products and services, expanding their international presence, and launched Plan A in their core business. Additionally, Marks and Spencer is looking to reduce costs in their business but it is not all about cost-cutting, it is about becoming more efficient and a lot of the investments M&S are making in their systems will enable them to become more efficient. (Marks and Spencer)

Additionally, M&S launched ‘fast fashion packs’. With this strategy Marks and Spencer have six weeks turning around from the design stage to getting it into a store. It available the company to respond to the changing needs and trends by improving their values without compromising on quality. These distinctive competencies allow Marks and Spencer satisfied their customer needs and enables the company increases the market penetration opportunities.

Relevant Marks and Spencer History