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Introduction

The ground of marks and Spencer were laid back in 1884 by lord Marks who started
selling in small town markets of Northern England
Marks & Spencer is the British largest retailer with four main divisions
The target market of Marks & Spencer is middle to high class consumers in major cities.
From 1914 onwards the company made a lot of technological advancements and
because of its high quality and medium prices Marks & Spencer soon associated with
quality and value able by its customers.
Major M&S Divisions in 1988
Firm Infra Structure
Human Resource management
Technology Development
Procurement
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M&S Value Chain
48% textile
Relative Market Share Position
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BCG matrix
40% food & 12% housewares
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UK market is getting saturated and
expansion efforts had been
inadequate to keep pace with the
growing range of Marks and Spencer
goods.
•Define The Business Mission
•Conduct The Situation Analysis
•Identify Strategic Opportunities
•Evaluate Strategic Alternatives
•Establish Specific Objectives And Allocate Resources
•Develop The Retail Mix To Implement The Strategy
•Evaluate Performance And Make Adjustments
Retail Planning Process
Business Mission
“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.”
Four major
components of the
situation analysis
• Market factors
• Competitive factors
• Environmental factors
• Analysis of strengths
and weaknesses of the
firm
UK Competitors Cloth Market
Competition in UK Food market
Market leader Market Challenger










Niche Market Follower

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Low
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Market Entry
Competitive Positioning Model
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.
• 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
• Geographically based divisions
• Backward integration-Integration with the suppliers
• Adequate information processing- EPOS
STRENGTHS
• Ageing customer base
• Bad publicity as it is being considered as old-fashioned store.
• Manual working increasing the costs.
WEAKNESS
• Internationalization- Increasing the global presence
• Initiating online shopping
• Growth areas home/food/beauty
• Consumers more prepared to purchase a wider variety of products from one source.
OPPORTUNITIES
• Increased Competition in all MARKS & SPENCER business areas
• Prior inability to adapt to changing customer needs
THREATS


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 Strategies
Increase 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 Strategies
Use of designer labels both internal
and external to attract younger
audience
Working 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 Strategies
Increase 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 Strategies
Refurbish 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
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Target Market Segment
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Identifying strategic opportunities
Evaluated Strategic Alternatives
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.
Established Objectives
To expand more globally and compete in a dynamic market
To increase sales and profitability through continues innovation
Grow business through acquisitions for fast market development
Improved processes for supply chain management and CRM
Develop the Retail mix to Implement this Strategy
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
CONCLUSION
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.