Marks & Spencer differentiate themselves from their competitors through their brand name.
They have always been recognized and known for their affordable quality
Unfortunately, in recent years this positioning as a quality retailer has lost its influence and has resulted in a continuing decline in sales
Marks and Spencer's reputation and brand positioning must be reevaluated and restored if sales are to be salvaged
We feel in order for Marks and Spencer to win back market share and grow profits they must;
Reduce the amount of sub-brands in both Women's and Men's wear
Redefine and acknowledge their target audience
A loyalty scheme- would encourage customers and also allow M&S invaluable information on how and when their customers shop, what they buy, where they live and how they pay.
Go "back to basics" and recognize what made them successful prior to their drop in sales
Market Share
Main Competitors
Marks and Spencer have seen a steady decline in market share and profitability
Kid's
Women's
Uncertainty in Positioning
Men's
2 Factors;
1) Inconsistent advertising
2) Multiple indistinguishable sub-brands
To summarize....
Marks and Spencer
Marks and Spencer's positioning is unclear to the consumer
Was once a representation of affordable quality
Marks and Spencer have become "everything to everybody"
The uncertainty in positioning is in direct correlation with a loss of market share and decline in sales
"Analysts are forecasting a profit before tax and one off items of between £615m and £630m- that would be 6pc less than what M&S made in 2012/2013- and for the first time, below Next's annual profit" (The Telegraph, 2014)
Our Recommendations
Advertising
- Founded in 1884 by Michael Marks and Thomas Spencer
- Today operates 766 UK and 418 international stores
- Employs over 82,000 people
- UK turnover is split between Food (54%) and General Merchandise (46%)
Christmas 2012
Marks and Spencer Verses John Lewis
Mission, Vision, Values
Mission; "To make aspirational quality accessible to all"
Vision; "To be the standard against which all others are measured"
Values; "Quality, Value, service, innovation and trust"
(Marks and Spencer 2014)
Survey Results
In your opinion, what does Marks and Spencer fashion brand represent?
Marks and Spencer Corporate Governance
In your opinion, who in Women's fashion do Marks & Spencer cater for?
When was the last time you purchased a fashion garment from Marks & Spencer?
In your opinion, who in Men's fashion do Marks & Spencer cater for?
Can you name any of the Women's in house brands?
Whats the problem?
SWOT ANALYSIS
WHO is the M&S Customer?
Average customer is 49 years old
Heavy investment in online