Identify Marks and Spencers market position and de Essay Example For Students

Identify Marks and Spencers market position and de Essay termine why they nearly collapsedIdentify Marks and Spencers market position and determine why they nearly collapsedIntroductionMarks Spencer is one of the UKs foremost retailers of clothing, foods, homeware and financial services, boasting a weekly customer base of 10 million in over 300 UK stores. Marks ; Spencer operate in 30 countries worldwide, and has a group turnover in excess of 8 billion. It has specific values, missions and visions. Its main vision is to be the standard against which all others are measured, its main mission is to make aspirational quality accessible to all, and its main values are quality, service, innovation and trust. (www.marksandspencer.co Did You Ever Wonder Where And Why We Live The Way We Do? With The Goal EssayMarks and Spencer are also making big changes in their childrenswear department. They have always applied strict safety testing and have the best quality childrens clothing on the market, and if improved can become very successful as the fol lowing quote outlines:I think the biggest threat to the retail scene at the moment is Marks and Spencer. Marks and Spencer is very interesting. They have suffered recently but I think theyre more of a threat if they get their act together and get things right in childrens clothing they could make a huge difference much bigger than any foreign retailers entering the marketplace. Source: MintelIn addition, Childrenswear is keen to involve personalities who are fans of Marks ; Spencer, so Marks and Spencer were delighted in February 2002 to sign David Beckham, a real style icon and role model, to help with their boyswear range. The first products arrived in stores in September 2002, and David Beckham himself has starred in adverts promoting the DB07 clotheswear range. Many of Marks and Spencers marketing activities since 1998 can be defined using Ansoffs matrix. This provides a useful framework for identifying alternative strategies based on products and markets. Although it does not focus specifically on the way in which competitive advantages are gained, it does help businesses such as Marks and Spencer to consider the different options available to them in terms of growth strategies. Each section of the Ansoff Matrix shall now be defined and adapted to Marks and Spencer where believed to be necessary:Market PenetrationThis involves selling more of the same product to the same customers, much like Marks and Spencer have been with the menswear clothing range. This strategy involves increased usage by encouraging customers to use a product more frequently i.e. loyalty bonuses. Product DevelopmentThis involved the development of new products for existing customers, i.e. the David Beckham range of clotheswear for children. Also the Blue Harbour and Classics range from Marks and Spencer. Market DevelopmentThis is the process of developing new markets for existing products. This can be achieved by targeting new segments or entering new geographical markets, as evident when Marks and Spencer brought 120 skilled jobs to the garment industry in Northern Ireland. DiversificationThis is seen as a risky strategy. It introduces new products to new markets. The level of risk is affected by the extent to which the new strategy is related or unrelated to existing business. This proves that things are looking promising for Marks and Spencer, they have bright ideas that are coming into place and are becoming recognised again due to the infiltration of famous faces such as David Beckham and granting him his own clothing range. Their marketing focus is on their clothing range which is probably the right idea due to competitors such as Tesco introducing their own clothing range. To incorporate their own style and image is something their competitors cannot comprehend to, so this is a huge step in the right direction for Marks and Spencers. ConclusionTo conclude, Marks and Spencers obviously suffered from the period of decline. The fall in profits proved this and they were made to count the costs. In fairness though, they have bounced back and are pushing towards the market position they were always proud to hold, at the very top in their sector. This is evident with the new clothing range they have released and the capture of a household name such as David Beckham, they are heading for the top again. The SWOT analysis outlined the problems they faced and the opportunities they had to come back, but as you have read, they have outlined a major focus on their clothing range since 1998, and the profits are starting to come in again. With the Zip, Blue Harbour and Classics range of clothing, they have a vast array of clothing lines to offer new and existing customers. Things can only go up for Marks and Spencer after the disarray of 1998, and if current evidence is anything to go by, they are certainly heading in the right direction. This audit has given a clear view of the problems that were faced and how they have overcome these problems and what the future has in store for Marks and Spencer in terms of marketing. Total Word Count (Excluding SWOT Analysis, Diagrams, Quotes and References) : 2498 wordsReferencesOwww.marksandspencer.co.ukOwww.mintel.comODavidson, H 1997, 1st Ed, Even More Offensive Marketing, Penguin Books, St IvesOFill, C, 2002 Marketing Communications Contents, Concepts and Strategies, Prentice HallODrummond and Ensor, Strategic Marketing Management, p. 149, Butterworth HeinemannOJoisce, Ted Lecture Notes for Marketing Planning and Marketing CommunicationsOMeek, H ; Ensor, J, p. 150, Strategic Marketing Management: Planning and Control, 2001, Butterworth Heinemann, OxfordOPiercy, N 1997, 2nd Ed. Market-Led Strategic Change Transforming the Process of going to Market, p. 27, Butterworth Heinemann, Oxford)OWelsh, CEO of General Electric adapted from Relationship Marketing Lecture Notes, 21/10/2002