Marks & Spencer Case Study

Thèmes abordés

Marks & Spencer Case Study Etude de cas M&S Etude de cas Marks & Spencer

Résumé du document

The hardest part for a modern business is to create a brand which is known, trusted and admired by the nation. It is a process which can take decades to get right. However, we have to keep in mind that the brand image can be destroyed in a matter of days.

Currently, the company Marks & Spencer is one of the most well known retailers in the UK, with around 21 million people visiting its stores each week. The group developed its business on several segments like clothing and food. In the 2000s, its strategy was not well implemented, and customer's needs were misunderstood. These aspects caused a decline of the brand.

In this case study, we will initially examine the issues faced by M&S in 2004. In the second section, we will present the different advantages of the recovery plan. To conclude, we will evoke the new strategy assessment and the new directives for 2012.

In 2004, the M&S brand slowly began to go downhill. Its customer relationships and sales regressed. Why did it suddenly all start to go wrong? According to the document, this decline is partly due to an uncontrolled diversification strategy; "M&S was targeting too many segments and failing to understand the customer needs". Furthermore, in accordance to a BBC article, the brand was producing poor quality clothing, and credit cards were sometimes not allowed during payment.

Moreover, a major event in the company was the entry of Stuart Rose in May 2004 as the new CEO. He came to turn around the flagging fortunes of the company. The billionaire Philip Green, who worked in Arcadia Group, offered to purchase the company. Regarding these difficulties, M&S began negotiations with its suppliers with the aim of reducing its annual 149 million euro expenses.

It was one of strategies proposed by Stuart Rose. A lot of changes occurred with the departure of some managers (director of the clothing and the furnishing, the marketing director). In addition, M&S saw its image damaged even more because the president was accused of possible insider trading by the authority of financial services.

Extraits

[...] Marketing can use it to change or to straighten an offer. To finish, we will talk about marketing investments concerning the design of its products and of its store. The needs of the consumers are thus better satisfied. New customers will be more attracted than previously. These investments will help to be more successful. Part3 : Stuart rose ( . ) and his new management team built their three-year recovery plan on the company's strengths Let's identify and comment these strengths. [...]

[...] This phenomenon will be accentuated by the Fair Trade project. This is the name given to a program which ensures in the same time, a fair price for customers, for manufacturers and the development of small farmers from developing countries. By purchasing fair trade products, people will have the feeling to contribute to the well being of the farmers and workers. Indeed, by opting for the fair trade, M&S will insure to the farmers safe working conditions, good wages, healthcare and education. [...]

[...] A lot of changes occurred with the departure of some managers (director of the clothing and the furnishing, the marketing director). In addition, M&S saw its image damaged even more because the president was accused of possible insider trading by the authority of financial services. Marks & Spencer has a wide variety of competitors, from the main supermarket groups, to specialist fashion and homewear retailers. Part In order to face these several issues, the company M&S set up a new plan called the “Plan As you certainly know, the environmental and social responsibilities are part of the obligations. [...]

[...] M&S will continue to help their suppliers to decrease their carbon emissions. These one have to use 50% biodiesel in their lorries, power stores with green renewable energy and be 25% more energy efficient. The aim is to become carbon neutral ; that is to say making the less possible carbon with their stores, transports, travels About recycling and wasting less of 18 commitments have been finished. They will use better collection and recycling facilities in their stores and warehouses. [...]

[...] Several factors contributed to give M&S such a high profile and lend the company such credibility. This phenomenon is due to a three year recovery plan. Between 2003 and 2006, the corporation repositioned itself on a more luxurious and trendy market. This had a positive impact on the image of the brand. The company started to answer a bit more to the customers' needs as we evoked in the first question of the Part 3. This has been sustained by a will of innovation. [...]