Answered: Mention 2 growth strategies that M&S…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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2. Mention 2 growth strategies that M&S can use to secure its profits over time?

Transcribed Image Text:Marks & Spencer Background Marks & Spencer (M&S) is one of the UK's leading retailers, with over 15 million people visiting its stores each week. The organization sells a wide range of stylish, high quality, high value clothing and home products, and an extensive range of foods of very good quality. Its products are responsibly sourced from suppliers that the company trusts. It is a publicly owned company with around 290,000 shareholders, many of whom are customers and present and past employees. Virtually all of its products are own-brand, allowing the organization to work with 1,900 suppliers around the world to meet its corporate social responsibility (CSR) standards. The company employs 65,000 people and has over 450 UK stores, including 43 food franchise stores. It also has a growing international presence, with 198 M&S branded franchise stores in 30 territories worldwide, and wholly-owned stores in Hong Kong and the Republic of Ireland. Policy and Problems In the 1920s, M&S introduced the then-radical policy of buying direct from manufacturers, and registered its own label, St Michael. Eventually all the products sold by M&S went out under the St Michael brand. The company had a policy of buying British goods only, and commissioned manufacturers to produce items to M&S designs and specifications. The company's fortunes dipped in the 1980s, partly due to: overpricing the policy of only buying British goods, and the policy of not accepting credit cards (except their own). Re-launches The company has also worked hard to lose its somewhat dull image and attract a younger audience. Lively advertisement campaigns, new product ranges and store redesigns have all been aimed at revitalizing the corporate image, while still retaining a degree of differentiation from other retailers. The Per Una range of clothing has been introduced as a younger-looking line, whilst still retaining M&S's reputation for quality. Staff Welfare The company has always had an enlightened attitude to staff welfare, providing health care, canteens, hairdressing services and even holidays for staff. This has ensured a committed and loyal workforce. Following requests from employees, M&S has introduced more training opportunities, which has helped its employees to develop new skills and maintain the company's reputation for very good products, value and service. The training program has involved over 58,000 of M&S employees.