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Jeevan Visualize
Jeevan Visualize
Major M&S Divisions in 1988




                              Jeevan Visualize
Firm Infra Structure

Human Resource management


   Technology Development   M
                            A
           Procurement      R
                            G
                            I
                            N


                            Jeevan Visualize
Industry Sales Growth Rate                              BCG matrix




                             48% textile                   40% food & 12%
                                                             housewares




                                   Relative Market Share Position           Jeevan Visualize
Problem
      UK market is getting saturated and
      expansion efforts had been
      inadequate to keep pace with the
      growing range of Marks and Spencer
      goods.



                                     Jeevan Visualize
Jeevan Visualize
“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.”




                                                   Jeevan Visualize
Jeevan Visualize
Jeevan Visualize
Jeevan Visualize
Market leader                                                                                              Market Challenger

                High
        Product




                                         Niche                                                                                                      Market Follower

             Low




                                                        Early                                                                                                                          Late
                                                                                                                     Market Entry
                                                                                                                                                                                                                           Jeevan Visualize
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.
Jeevan Visualize
STRENGTHS
                                               - High recognition of brand
                                               - Large number of outlets and high street
                                               presence
                                               - Popular designer labels/sub-brands, i.e.      W EAKNESS
                                               St.Micheal                                      - Ageing customer base
                                               - Niche market success for food                 - Bad publicity as it is being considered
                                               - Wide variety of products                      as old-fashioned store.
                                               - Paternalistic relationship with employees     - Manual working increasing the costs.
                                               - Geographically based divisions
                                               - Backward integration-Integration with the
                                               suppliers
                                               - Adequate information processing- EPOS




                                               SO Strategies
                                               •Increase in specialist stores/outlets using
OPPORTUNITIES
                                               the recognition of the MARKS &                  W Strategies
                                                                                                 O
- Internationalization-Increasing the global
                                               SPENCER brand                                   •Use of designer labels both internal
presence
                                               •Use recent popular MARKS & SPENCER             and external to attract younger
- Increase in online shopping
                                               labels to develop sub-brands under              audience
- Growth areas home/food/beauty
                                               MARKS & SPENCER brand umbrella.                 •Working more on e-commerce in order
- Desire for labels/ branded goods
                                               •Possibility   of    use     of     celebrity   to curtail costs and increase online
- Consumers more prepared to purchase a
                                               endorsement.                                    shopping.
wider variety of products from one source
                                               •Increasing global presence to capture
                                               large target market world wide.


                                               ST Strategies
THREATS                                                                                        W Strategies
                                                                                                 T
                                               •Increase diversity of product range in
- Increased Competition in all MARKS &                                                         •Refurbish Children's wear (7-14 yrs) in
                                               order to stand out in the cut-throat
SPENCER business areas                                                                         reaction to increased competition to
                                               competition.
- Prior inability to adapt to changing                                                         generate long term profits in this growth
                                               •Using the information system to be pro-
customer needs                                                                                 market
                                               active in adapting to the customers need.
                                                                                                                   Jeevan Visualize
New




                              Retail format
                                                               Diversification
                              development
Retail Format

                Existing




                           Market penetration              Market expansion




                                       Target Market Segment
                           Existin
                                                                      New
                             g
                                                                                 Jeevan Visualize
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.



                                                  Jeevan Visualize
Jeevan Visualize
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



                                                               Jeevan Visualize
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.




                                                  Jeevan Visualize

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Marks & spencers retail

  • 3. Major M&S Divisions in 1988 Jeevan Visualize
  • 4. Firm Infra Structure Human Resource management Technology Development M A Procurement R G I N Jeevan Visualize
  • 5. Industry Sales Growth Rate BCG matrix 48% textile 40% food & 12% housewares Relative Market Share Position Jeevan Visualize
  • 6. Problem UK market is getting saturated and expansion efforts had been inadequate to keep pace with the growing range of Marks and Spencer goods. Jeevan Visualize
  • 8. “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.” Jeevan Visualize
  • 12. Market leader Market Challenger High Product Niche Market Follower Low Early Late Market Entry Jeevan Visualize 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.
  • 14. STRENGTHS - High recognition of brand - Large number of outlets and high street presence - Popular designer labels/sub-brands, i.e. W EAKNESS St.Micheal - Ageing customer base - Niche market success for food - Bad publicity as it is being considered - Wide variety of products as old-fashioned store. - Paternalistic relationship with employees - Manual working increasing the costs. - Geographically based divisions - Backward integration-Integration with the suppliers - Adequate information processing- EPOS SO Strategies •Increase in specialist stores/outlets using OPPORTUNITIES the recognition of the MARKS & W Strategies O - Internationalization-Increasing the global SPENCER brand •Use of designer labels both internal presence •Use recent popular MARKS & SPENCER and external to attract younger - Increase in online shopping labels to develop sub-brands under audience - Growth areas home/food/beauty MARKS & SPENCER brand umbrella. •Working more on e-commerce in order - Desire for labels/ branded goods •Possibility of use of celebrity to curtail costs and increase online - Consumers more prepared to purchase a endorsement. shopping. wider variety of products from one source •Increasing global presence to capture large target market world wide. ST Strategies THREATS W Strategies T •Increase diversity of product range in - Increased Competition in all MARKS & •Refurbish Children's wear (7-14 yrs) in order to stand out in the cut-throat SPENCER business areas reaction to increased competition to competition. - Prior inability to adapt to changing generate long term profits in this growth •Using the information system to be pro- customer needs market active in adapting to the customers need. Jeevan Visualize
  • 15. New Retail format Diversification development Retail Format Existing Market penetration Market expansion Target Market Segment Existin New g Jeevan Visualize
  • 16. 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. Jeevan Visualize
  • 18. 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 Jeevan Visualize
  • 19. 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. Jeevan Visualize