marks and spencer presentation (2)
TRANSCRIPT
T
E
A
M
Sam Englman, Zittong Zhang, Sijia Liao, and Rachel Wittreich
To be uniquely inspirational 21st century
retail organization in the regions we
choose to operate
To be the standard
against which others are measured
(benchmarking)
Quality
Service
Innovation
Trust
Mission :
To provide a retail experience which exceeds our
customers' expectations in terms of customer
service, product range, quality and value. To
adequately reward our staff, generate a
satisfactory return for our shareholders, and to
make inspirational quality accessible to others.
Environmental Sustainability
“Look Behind the Label”
- Ethical & Environmental friendly aspects of their clothes:
- Fairtrade products
- Sustainable fishing
- Environmental friendly textile dyes.
Charity Work:
-Breakthrough Breast Cancer
- Oxfams clothes recycling intuitive
- Donation to hospitals
Plan A
Increase environmental suitability of the business.
Key social and environmental challenges M&S face:
-Climate change
- Waste
- Sustainable raw materials
- Fair partnership and health
International (1973)First international expansion into Canada. The France, then the Philippians, Netherlands, etc.
Beginning (1894)Michael Marks and Tom Spencer enter into a partnership to create Marks & Spencer.
7
M&S Bank (1985)Assists in banking, credit and insurance
products, and internet banking.
Online Presence (mid-2000)Online shopping and delivery
M&S Simply Food (2001)Sell primarily food but also carry small
selection of general merchandise.
Plan A (2007)An initiative to become an even more sustainable and environmentally friendly corporation.
Outlet Stores(2011)50 outlet stores and growth expansion plans for the future.
Continues to GoInternational
• Vast Network of stores and locations.
• Well known products
• Known Brand Name
• Managing relationships with banks.
• Strong M&S Brand
• Strong retail and finance
• Strong quality and trust
• High quality management team.
Threat
- Rising labor costsOpportunity
- Increasing presence in fast
growing international
markers.
- Trends towards online
purchasing
Weakness- Bad publicity
- Significant reliance on UK
market
Strength
- Strong brand image
- Variety of Products
- Large number of stores,
outlets, and multichannel
approach. .
This segmentation has to do with the:- Lifestyle- Personality
Psychographic
Segmentation
This segment has to do with the:
- Demographic- Socio-Economic
Variable
Profile Segmentation
This segment has to do with the:
- Benefit Sought- Purchasing Occasion
- Usage- Perception and Belief
Behavioral
Segmentation
RivalsHigh
- Food: Tesco, Asda and
Sainsbury’s
- Apparel: Topshop, Next, and
Zara
Substitutes
High
Food: Waitrose Apparel: Peter
Johns and John Lewis
Threats of New Entries
Low- Takes enormous capital
investments to set up M&S
has strong brand names
and high customer loyalty
Supplier Power
Low- Many suppliers want to join
M&S
- M&S sells own branded
products
Buyer Power
High- Low switching costs
Retail Industry
Change in industry (long term growth
rate)
Increase Globalization
Emerging Internet
capabilities & application
Changing societal
concerns, attitudes, &
lifestyles
Slide 14
• Innovation: Core value. Innovate sustainable technology
• Employee skills: Offer a comprehensive training and performance coaching program. And also support employees’ needs
• Customer satisfaction: increased by 18%
• Customer loyalty: M&S credit card, loans, gift card.
• Maximize profit: Underlying profit before increased 6.1%. Gross margin on General merchandize increased.
• Reduce cost: manage cost tightly with aim to keep profitability
Financial Perspective
Customer Perspective
Innovation and
Learning Perspective
Internal Business
Perspective
Decision convenience, access convenience,
transaction convenience, benefits convenience,post-benefit convenience
Customer Service
unique merchandise that appeal to targetcustomers
- Enough merchandise.
Merchandise
Since much of the shopping experience is rather mundane, those
retailers who can distinguish themselves with unusual and
exciting store atmospherics add value to the shopping experience.
- Design, ambience, music, color, scent
Shopping Experience
Rivals M&S
Market:
• M&S existing customers plus Stella McCartney’s customer
• Focused on a broader global market.
Seeking to differentiate the company’s
product offering from rivals’ with superior
attributes that will appeal to a broad
spectrum of buyers
High
Broad
Low
Narrow Geographic Market Scope
Price/
Perc
eiv
ed
Qualit
y a
nd
Image
M&S
Tesco
PLC
Next
PLC
ASDA
Marks & Spencer
Tesco PLC
Next PLC
ASDA Group
Stella McCartneyDesigner
- Has established 17 freestanding stores
- Her collection is distributed in 50 different countries and 600 wholesale accounts including specialty stores and department stores.
Stella McCartney
- 330 stores worldwide - Brick and Mortar stores in
59 territories- Ecommerce (7 million
registered users)
Marks & Spencer
Products Products
Environmental &
Sustainable
Business
Practice.
- Plane A
- Behind the Label.
CultureEnvironmental &
Sustainable Fashion:
- Green Designer of the Year (2008)
- Organic Style Women of the Year (2005)
Culture
- Clothing
- Perfume
- Lingerie
- Skin Care
- Athletic wear
- Kids clothing
- Clothing
- Lingerie
- Skin Care
- Kids
Clothing
- Food
- Furniture
- Accessories
PROJECT 01
Examine,
Define,
Forecast, &
Decide
Define whether the
company synergizes
with our company.
Define the intended
target group.
Forecast next years
fashion.
Choose which designs
you want to sell from
McCartney’s line.
02Negotiate
Determine and agree
on the terms of the
licensing agreement.
(Royalty Rate)
03Create the for P’s
Product: How will you familiarize customers
with the new product and its qualities.
Price: Determine price of products,
taking into account royalties and other
rates.
Promotion: Social Media, Websites, etc.
Place: Create displays in stores.
04 05
Introduce, Implement, &
Track
Introduce and educate employees with new
products.(eco-friendly, innovative, quality,
etc.)
Implement new designs into a select of
high traffic stores.
Track the success of the product
(financially, customer loyalty, etc.)
Launch
Depending on the success of brand
and product, expand into more
stores.
Development of exclusive lines
New Marketing Campaign
Indication of good strategic fit
5-9% Sales growth
Launch in UK then
internationally
Adding more designers to provide
exclusive designs.
Step 1
Improve brand image
Step 2
Add value to customers.
Step 3
Expand Stella McCartney line to additional retail departments.
Step 4
• Loss of initial costs and inventory losses.Partnership
Failure
• Risk of added cost to continue partnership in the event of success.
Partnership Success
• Luxury goods are highly market sensitive
• Watch market trends closely to diminish negative effect.
Large macro-economic risk
-2.5% retail revue growth
Gross Margin 6.79%
Net income margin 4.66%
Debt to Equity 1.56x
Return on Assets 5.87%
Quick Ratio 0.31x