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Marks and Spencer

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Andrea Taylor

on 5 May 2014

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Transcript of Marks and Spencer

Toni Ross, Ailsa Stronach, Andrea Taylor, Robyn Reid and Heather Wright

The retailer began in 1884, when Michael Marks opened a market stall in Leeds. Ten years later he went into partnership with Tom Spencer and created the company we know today, Marks and Spencer’s.

Now operating in over 1000 stores, Marks and Spencer's has become a highly successful multinational retailer (Mintel 2014).

1953 First British brand to ever offer refunds

1970 – First year to offer fitting rooms
2014 – Changed their logo to M&S
75% of M&S customers are aged 45 and over, and over 50% are over the age of 55 (Hiscott 2013).

M&S core customer is typically the mature woman, which is the fastest growing demographic in terms of online shopping.

However, according to M&S plan, M&S international strategy is built around a clear geographic focus supported by the right business model for each market.

Target Audience
– The standard against which
all others are measured

– Making aspirational
quality accessible to all

– Quality, value, service,
innovation and trust
(Marks and Spencer 2014).

(Source: Author adapted from Thomson and Baden-Fuller 2010)

When a company focuses on differentiation they
aim for customers to perceive the products to have added value (Thomson and Baden-Fuller 2010).

This can often allow the price to be higher than competitors where the additional added value lies in the brand name (Thomson and Baden-Fuller 2010).

and Focused
Differentiation Strategy

This is related to the vision, mission and values where they use quality as a standard against competitors.

The annual reports are now embellished with the phrase “Quality, Value and Service Worldwise” (Burt and Carraleo-Encinas 2000).

A standardized image is the format even when they operate overseas (Burt and Carraleo-Encinas 2000).

This draws observations of how these aspects of the core British store image has been managed in the internationalisation process (Burt and Carraleo Encinas 2000).

How M&S Applies this

Marks and Spencer is known for its
own brand collections of women’s and men’s wear. It is also known for individual lines each fitting a particular target audience(Key Note 2011)

Recently Marks and Spencer’s advertising campaigns have featured celebrities Emma Thompson, Annie Lennox, Rita Ora and many others. (Key Note 2011)

This demonstrates targeting a number of ages where they aim to connect with with all target audiences through these celebrities.

Target Strategy :
Through Clothing Brand
Turnover of own brand product -
Profit for financial
year -
End of Financial Year (2013) Figures
Large area of competitors due to
variety of retail offerings.

Competitors include Next, Debenhams, John Lewis, Primark, ASOS and Zara (Ruddick 2012).

Keeping up with more commercial competitors.

Zara and Primark are stores which M&S
must compete with due to their pricing and production strategies.

- Abide by health and safety standards
such as planning for hazard identification,
risk assessment and risk control.

- Retail climate (such as the recession) can be very uncertain and is likely to effect retail sales with consumers having no money to spend on luxury items such as clothing and food (M+S finest).


Anit-Bribery Act: Insuring no bribes or corrupt payments are made, offered, sought or attained by anyone on M&S's behalf to anyone anywhere in the world.


Recycle M+S clothing at Oxfam and receive a £5 voucher off, this is part of M+S rewards for recycling their clothing.

A strong supply chain management with the use of 'editrack'
a business process tracking system that provides visibility
and control of merchandise.

M&S biggest weakness is in womenswear, steadily
loosing market share (Mintel 2014).

To focus on growth within the BRIC and MINT

As supermarkets expand their product and fashion ranges,
M&S are loosing their differentiation from competitors.
"Britishness is as saleable as ever in any part of the world,"

Steve Rowe, executive director for food M&S
Over 300 stores in 40 overseas locations

Market Entry Strategy

M&S Flagship London, Oxford Street
M&S Paris
M&S Sustainable Store
UK, Cheshire Oaks
M&S Hong Kong
The Middle East

Market Entry Strategy
Main Focus of Expansion
M&S are currently trying to change the customer base by a recent introduction of clothing suited to the ‘younger’ market.

Figures state that a quarter of the UK public wear M&S underwear, and 60% of the UK adult population shop at M&S (Trowbridge 2013).

Cultural clusters
(Source: Adapted from Helfferich,
Hinfelaar and Kasper 1997)

Helfferich, Hinfelaar and Kasper (1997)
(Source: BBC 2014)
Marks and Spencer’s have been working hard to keep up their successful international expansion.

They aim to increase sales by 25% and profits and profits by 40% in the three year period.
The retailer said its approach will be that of ‘bricks & clicks’, a flagship store in major cities supported by M&S food stores along with a full website.

Marks & Spencer chief executive Marc Bolland said ‘Our strategy of becoming an international, multichannel retailer is more relevant than ever before because of the strong growth potential of international markets.’
M&S key focus on the left hand side of the Ansoff Matrix.

Key focus lies on developing new markets and penetrating existing UK markets.

M&S Future Strategy
Source: Ansoff (1957)

Future Strategy
Bowman’s Strategy Clock
(Marks and Spencer Placement)


- The purchase of ethical and second hand clothing is thought to have increased over recent years. These increases are due to be the cause of a number of changing consumer trends such as increased concern about the ethical qualities of clothing and the environmental impact clothing can have.


- Over the past few decades online sales have continued to perform well, following a rise in the number of internet users in the UK thought to be around 85.8% in Q1-2013 .

Thank You for listening to our presentation.

We hope you enjoyed it
(Source: Marks and Spencer 2013 a)
Full transcript