Marks and spencer coursework

Costs of manufacture are dropping down as manufacturing is progressively being moved to inexpensive places around the world. Substantial brands have high profiles and their goods are relaxed to copy by counterfeiters with slight changes by competitors.

Extract of sample

Large chains dominate the retail sector and the only way to gain share in this mature market is to success to win customers from competitors. Outmoded mail order collections are losing ground, as it is difficult to keep well-informed of fashion. Internet selling is unlikely to be significantly successful, as customers like to try on clothes and see the superiority of fabric and workmanship. Sales are periodic, with the greatest spending taking place in the run-up to Christmas, when more expensive coats and party wear are anticipated.

Clothes are also common gift choices. The state of the reduced can have an important impact on sales at the top end of the market, as well as on desire buying. Men still spend less on dresses than women and this segment of the market remains underexploited. The asset of brands such as Dorothy Perkins and the expertise of British retailers suggest there is probable for further growth abroad, mostly in the new EU member states.

Number of working women remains to growth, they will not only want more clothes for work but are also more probable to have the financial freedom to create clothes purchases. Clothing chains from overseas, mainly those from Europe, such as Zara, have positively occupied UK high streets. Conventionally popular retailers, like Marks and Spencer, will have to adapt or face the harm of more market share to aggressive groups such as Arcadia. Both manufacturing and retailing are labour concentrated and are affected by legislature concerning minimum wages and working hours.

The increasing participation of grocery multiples in clothing retailing is adding low-price volume to the market. A recession in the economy could cause men, in specific, to cut back on overall expenditure in this sector. By control the price constant this should help take back segments of the market missing to competitors. By introducing absolutely new and original products they can further strengthen their market segments.

Once they have recognized a position in other market segments they can begin to distinguish their merchandise within that market segment and additional strengthen their position. This can be assisted by founding a strategic alliance with other organisations not to violate on each others market for the time being. The upgrading on design and layout for the store will have been introduced in an attempt to gain customer demands on convenience and to increase more shopping attractive.

Dupont to pioneer the use of the material Lycra for the mass market case study. Performance depends directly on simple, mostly tangible, resources, but the growth of tangible resources is dependent on intangible factors. For example a significant number of theorists give reasons for why location is important. This hybrid and overall trend is to be recognised in many retail concepts, e. The clothing sector will continue to grow from Further trends are also an increase in service demand and offer as well as the further market differentiation in value providers and specialists.

Figures 1. The company do however recognise the need to broaden their customer appeal and target all age groups. S H Sven Hallbauer Author. Add to cart. Contents 1.

Marks And Spencer Organisational Structure

Management Summary 2. Stores should be restructured according to Chinese trends so people perceive it safe and comfortable. All superstitious beliefs should be taken into account while selecting and designing new stores. Promotions are set of tools that marketers use to create image of company and its products.

It should adopt and show a well CSR strategy so winning trust by helping people of china. Awareness campaigns could lead to high results,. It was found in through the partnership of Michael Marks and Thomas Spencer. Thanks to these corollaries, the organization experienced a great success which led to national and global expansions. Nevertheless, the company started facing problems due to the various reasons such as outdated fashion products that were not on par with the fashion trends. This was primarily due to the fact that they lost focus on their central business by introducing a wide range of products that were not compatible with their core competencies.

This led rivals to steal the market share. China was one of these markets that were not affected by the economic downturn. However, the outcome of this venture was not as successful as expected due to several problems ranging from product incompatibilities to superstitious beliefs.


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The first section of the paper highlights the current financial performance of the company. This is followed by an exploration of the problematic marketing mix that contributed to the failure of the firm in China.

Retail marketing and new retail idea - Marks & Spencer

From these figures, it can be seen that Marks and Spencer has been gradually increasing its net revenues. However, even if they increased, its net income and earnings per share decreased. This can be explained by the investments that have been carried out by the company to realize its internationalization strategy. Not all of these investments have been successful as some did not succeed like in France for instance where the company decided to close all its stores and exit the market.

Indeed, they abandoned their opportunity to expand in France but the cost to exist was relatively expensive mainly because of the labor force protection by the French Government Global Oneness, In short term solvency, it can be said that the company is managing normally its activities in an inefficient way. Thus, investors would be willing to invest more in Tesco.

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This situation also spread bad image for the company in its financial circle which can have the effect of reducing the investing power of the company. Regarding the long term situation, the level of Asset-to-equity and Debt-to-equity ratios show that the company have a large part of its assets financed by Debt. It is crucial in fashion industry to get the product right. Although analysts say they have recovered, they seem to be repeating product mistakes in Chinese market as well. Experts in fashion, have identified key issues that may lead a fashion product to fail.

Each clothing retail brand has its basic pattern block that probably has been made after studying target groups measurements and taking the average from that.

Marks & Spencer PESTLE Analysis Essay Example | Graduateway

In mass production of several thousands of pieces of garments, shrinking the measurement in to unnoticeable 1 cm may make noticeable reduction in cost. Therefore fashion is created according to feasibility, cost effectiveness of the designs and it is influencing the way clothes fit and the sizing as well. Average size in Chinese apparel industry is smaller than European size in every dimensions. It is shorter; sleeves are 2 inches shorter, sizes up to In Europe it is up to Two customer base target group : European expatriates and typical Chinese consumer, also created merchandising issues.

Whereas competitors try to focus on one segment and one fashion concept and therefore perform effectively. Diversified products result in bigger and slower supply chain. Costumers find them out of fashion. Brand value is a key for success in fashion industry. Fast moving, better-positioned and low price competitors are jeopardizing brand value of once famous clothing retailer with heritage.

Marks and Spencer has been criticized by its Chinese customers that the food products in shelves were produced a long time ago from the date of purchase. So there is only a small portion of fresh products and also the range and variety is limited. Majority of products are approaching towards expiry date. The food items contain preservatives that effect taste of products.

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Further research shows that a large amount of products were destroyed due to expiry, spoilage and bad conditions. Research shows that the main reason for above mentioned problems is that Marks and Spencer imports its products from UK. It takes a significant time in shipment of goods from UK to China due to enlarged supply chain cycle involved.


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  • A portion of products is deteriorated due to inefficiencies in handling, storing and transportation procedures. Also this brand name has no direct linkage with products. This is due to company policy towards branding and trends in UK market as much of retailers such as Tesco brands their products under their trade name.

    Research reveals a customer complains that he bought a packet assuming it to be biscuits but when he opened it were snacks. The above problem is a result of standardized strategy towards packaging and labeling. The labeling lacks Chinese description and also rich in text and without product images.

    Marks and Spencer did surely understand these points when operating in UK and in other successful countries but not when it came to China as the company failed to set the price correctly. These are the extremes and Marks and Spencer leaned far too much to the high price end. As a result, the company found it very hard to sell its product and generate profit for a viable business in China.

    The Growth Of Marks And Spencers Essay

    However, in some cases the prices of products were convenient but the customers still did not buy them. The reason is primarily that Marks and Spencer did come late. When entering a new market, one of the crucial decision that a company has to make is choosing the right location to open in. As a result, in the following paragraph will discuss the problems related to the Marks and Spencer stores in China. And the other one is in Yuyuan Garden, Shanghai major attraction and commercial hub City in Pulse, These stores, especially the first one, have suffered poor trading in the last months.