Marks and Spencer Overview

An overview of Marks & deoxyadenosine monophosphate Spencer plc Marks & international adenineere Spencer (M& antiophthalmic factorS) is a leading British retail merchant, with over 895 stores in over 41 countries around the world. As of 2009, 600 stores currently set(p) throughout the United Kingdom along with 295 stores planted internation bothy (M& adenosine monophosphateS 2009). According to Deloitte (2009) M& international ampereS is the wallopingst apparel retailer in the United Kingdom, as well as be an easy lay food retailer and as of 2009, the 43rd largest retailer in the world.The large majority of its domestic stores sell both garb and food, and since the turn of the degree Celsius it has started expanding into other ranges such as homewares, furniture and technology. Figure 1 illustrates M&Ss overall sales in millions from the age 2005 2009. The graph trend shows a gradual increase in disorder every year. By the end of 2009 M&S tax income reaches 9,062 . 1 million compared to 2005 revenue of 7,490. 5 million. A difference of ? 1571. 6 selective information taken from M&S 2009. Figure 1 M&S Sales (2005-2009) Figure 2 represents the in operation(p) profit of M&S.There is a steady rise in the growth of sales from 2005 to 2008. However in the year 2009 there is a decline in the growth of sales. This is fairly due to the economic street corner resulting in less economical activity. M&S prices would contract risen resulting in a decline in need for their products and services. Data taken from M&S 2009. Figure 2 M&S Sales growth (2005-2009) Figure 3 displays the deuce primary categories of business for M&S. Food as a whole and all other products falling under house engage products. Both areas of business are equally important as they survive a near perfect hare of the business. Data taken from M&S 2009. 51% 49% Figure 3 M&S main business areas Business strengths and weaknesses M&S has grown over the 2 1st and it is arguable that the company has move from strength to strength. M&S are strong in many an(prenominal) dynamics ranging from a politically, economically and superiorly strategic company. unity major strength of M&S is its emerging pick up of an active environmentally friendly company. On 15 January 2007, M&S launched an initiative, known as Plan A (M&S, 2009) to dramatically increase the environmental sustainability of the business within 5 years.In 2006 the Look bum the Label marketing campaign was introduced. The aim of this campaign was to highlight to customers, the non-homogeneous ethical and environmentally friendly aspects, of the production and sourcing methods engaged in by M&S including bewitchingtrade products and sustainable fishing. As indicated by A. Fletcher (2006) all coffee and tea interchange in M&S stores is now Fairtrade. According to the BBC (2006) the company offers clothing lines made from Fairtrade Cotton in selected depa rtments.This aspect of M&S emphasises the equality and fairness to the customary and helps promote its products to certain groups in the market who would not previously get their products for this specified reason. Although M&S is a highly recognise and established company it has fallen under heavy criticism in the past. War on Want (2007) criticised M&S, in its evolution Pains report for using its influence to force overseas suppliers to forever diminish their costs while boosting their own profits. Political issues scram likewise arisen, the company has been criticised for its support for the State of Israel during wars and conflict.According to J. Smith (2004) activists lease campaigned against the company and most stores have had their signage altered and their goods re-labelled. As a result boycotts have taken place with little effect on M&S sales and profits yet this has led to a disruption in social cohesion of society demonstrate through protests. Develo pment of pertly products and services Most (M&S, 2009) stores originally sold both clothing and food, and since the turn of the century it has started expanding into other ranges such as homewares, furniture and technology, beauty and energy.The Indigo collection (M&S, 2009) is a new range of clothing aimed at the core, 35-45, feminine businesswoman type. The shoes, trousers and jeans will be UK-sourced and the T-shirts will involve Fair trade cotton from Senegal, India and Pakistan. Beachwear may be added to the list if the success continues. Per Una, too a relatively new product for younger females clothing sold at MampS stores. The product was launched on kinsfolk 28, 2001 as a joint venture between MampS and Next. All per Una items include the three hearts logo.The BBC (2005) states Per Una has been a major success for the company. In 2006 (MampS, 2009) launched a range of domestic technology products. Thirty-six stores now offer this range. Additional services offered include tv installation and technical help. Competitors MampS does not have any one store that is a complete competitor in terms of products and services. Supermarkets such as Tesco, Asda and Sainsburys compete with MampS to a certain extent, primarily in the food industry. Marks amp Spencer is predominantly a clothing store which obtains most of the companys profit.Yet due to the significant product differentiation, MampS competes with many companies for example Cotton Traders are a competitor in their clothes, rump Lewis competes in their home accessories whereas Waitrose competes in food. As a result MampS have to constantly innovate and outsource to ride out competitive in the market and dominate. Marketing Strategies By training and maturation its staff well, MampS is in a correct to develop a competitive advantage over its competitors Firstly, developing value-for-money products that customers want.Training and maturation brings new skills which help to add value to its products and services, for example by smashing costs. This enables the company to keep prices lower to benefit the customer and increase consumer demand leading to profit in the long run. MampS provides good customer service through communication skills, this can have a positive impact on customer service. Training and culture equips individuals with the skills they need to achieve their targeted role in the business.When Steve Sharp joined as marketing director in 2004, he introduced a new promotional brand under the Your MampS banner, with a correspondent logo. This has now become the companys main brand in its advertisements. The use of high profile television campaigns has been influential in the companys recent success, particularly with the achievements of a new clothing campaign featuring high profile models, and the new TV ad campaign for its food range. These adverts have the tagline This is not just food, this is MampS food.Furthermore the use of camera special do and footage along with music and a pleasant voiceover leads to a very smooth-tongued advertisement. A new store format designed by urban Salon Architects has won much praise and is in the process of organism rolled out across all stores, with a majority of stores being completed by the end of 2008. The full new look makeover is a reworking of store design, including the gutting of old stores. An increase in display and product walls, window display styles, larger fitting rooms, glass walls, till points, and general get along updating of decals, equipment, and lighting.