marks and spencer - marketing and business plan

Presented By: Oday Alnabhan

Marks and Spencer plc (also known as M&S) is a major British multinational retailer headquartered in the City of Westminster, London.

It specializes in the selling of clothing, home products and luxury food products.

M&S was founded in 1884 by Michael Marks and Thomas Spencer in Leeds.

About the Company

www.odayalnabhan.com

Mission: To Make A spirational Quality Accessible To All

1

• Providing New Quality Products In The Areas Of Cloths, Food, Home And Financial Services

2

• Social Revolution, By Providing The Working Class With

Clothes Fit For Lords And Food Fit For Kings.

3 • Delivering High Quality Goods

4 • Offering Affordable Price

5 • Receiving By Customers Good Value For Money


Vision Statement

‘To Be The Standard Against Which Others Are Measured’

Organisational Goals

Increaseing Sales And Market Share In Retailing

Continueing Differentiation Strategy By Delivering Freshness, Quality And Innovation

Becoming The World’s Most

Sustainable Major Retailer By 2015

Quality, Value, Service, Innovation And Trust.

Values


SWOT ANALYSIS

Strength: • High Brand Recognition • Wide Variety Of Products • It Has Over 1000+ Stores Present Across 40 Countries • Over 80,000 Employees Form A Part Of The Workforce Globally • Organic, Healthy Food Products

Threats • Still Reliant On Mega Stores • Competitors Like ASDA, TESCO Etc and Various New Entrants

Weakness: • Highly Priced Products • Attracts Only People Over 25-30 Years Of Age • Weakening Company Financials

Opportunities • The Online Retail Space • Introduce Clothing For Younger People • Geographic Expansion In Emerging Markets


Porters 5 forces

Threat Of Substitutes

Bargaining Power Of

Buyers

Threat Of New

Entrants

Bargaining Power Of Suppliers

Degree Of Rivalry

.

Porter 5 Forces


BUSINESS MODEL


What is a business plan ?

Preparing a Five Year business Plan.

A Business Plan Serves two functions:

1. Guides the company’s growth and development

2. Attracts lenders and investors

A Business Plan


Three Tests That Every Business Plan Must Pass

Competitive Test

Reality Test

Value Test


M&S launched an initiative, known as "Plan A“ to dramatically increase the environmental sustainability of the business within 5 years and expected to cost £200 million.

The plan covers "100 commitments over 5 years to address the key social and environmental challenges facing M&S today and in the future" with the tag-line

M&S ‘’Plan A’’ "Because there is no Plan B". (January 2007)


M&S 5 - Year Business Plan (Smart Objectives)


M&S 5 - Year Business Plan (Contingency Plan)


Strategic Decision Making To Increase Sales Volume


Advertising any sales

presentation that is non-personal in

nature and is paid for by an identified

sponsor

Creative Use of Advertising and Promotion


Twelve tips that Marks & Spencer uses for their effective advertising:

1. Plan more than one ad at a time 2. Set long-run ad objectives and

measure performance 3. Use ads, themes, and media that

appeal to target customers 4. View advertising expenditures as

investments, not expenses 5. Use advertising that is different

from competitors’ advertising. 6. Choose the media vehicle that’s

best for your business even if it’s not “number one”

Creating a Promotional Strategy


7. Consider using some else as the spokesperson on commercials.

8. Focus ads on the company’s USP. 9. Devise ways of measuring ads’

effectiveness that don’t depend on just tow or three customers’ responses.

10. Don’t simply drop an ad because nothing happens immediately.

11. Emphasize the benefits that the product or service provides to the customer.

12. Evaluate the cost of different media.

Cont..Creating a Promotional Strategy


Characteristics of a Successful Ad


Marks & Spencer uses these main techniques:

1. Comparative advertising 2. Shared advertising 3. Stealth advertising 4. Repeat ads that have been successful 5. Use identical ads in different media 6. Hire independent copywriters, graphic

designers, photographers, and other media specialists

7. Concentrate advertising when customers are most likely to buy

How to Advertise Big


MARKETING

We brought food and fashion together under one brand identity (Only M&S)

Every product is built around our customers.

Our range of selling channels.

Our strong presence in the UK

Our expanding Simply Food format

MARKETING & SERVING OUR CUSTOMERS


Marks & Spencers

10%TESCO

24%

J. Sainsburry

25%

ASDA Group31%

Argyil

Group10%

Jeevan Visualize

Competition in UK Food market -2015


Marks &

Spencers43%

Store House

14%

Sears PLC

11%

NEXT

6%

BURTON

26%

Jeevan Visualize

Competition in UK Cloth Market-2015


Jeevan Visualize

Proposed strategy: Market Expansion

Increasing Product Lines.

Expansion Plans In Different Geographic

Regions


Marks and Spencer need to address a few problems before opening

chains in international grounds. They need to fully address ‘Plan A’ in

order to achieve maximum efficiency within the UK.

There is a need for market development as well as product development

as new age segmentations are found.

Major work needs to be done within the non-food section of Marks and

Spencer as well as customer service section.

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.

Conclusion


marks and spencer - marketing and business plan

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