Whilst it still holds a respectable 11% of the market share there are concerns that this percentage ill continue to shrink as competition increases from other clothes and lifestyle retailers. M&S’s challenge Is to regain Its growth It was once renowned for. M growth strategies through market penetration Market penetration Is where an organization Increases Its market share of an excellent product or service. Store refurbishment. Aware that their brand had become tired, in 2011 M spent Been on store refurbishments to give their customers a better shopping experience.
This included providing more space for the customer and more changing rooms. Recruitment of new staff for flagship branches and provision f quality training for maximum customer satisfaction and a more personal service than it has ever provided in the past. Opening of 150 more M food only stores nationwide in the next three years to compete in the small supermarket’s industry. M&S growth strategies through product development Product development Is where a company brings a new product or service to market or improves an existing product or service.
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M&S were originally known for clothing products; however they now have a wide range of products and services to satisfy their customer needs. Introduction of new exotic and diverse prepared food, for example introduction of haggis to all food stores. Provision of quality cafe facilities in its main stores so customers were inclined to spend more time and money in the stores. Introduction of new product ranges such as birthday cards and in-house designer ranges. Launch of the new M&S. mom as direct competition to Next online, bringing a new method of shopping for Its existing customers. M&S growth strategies through market development Market development Is where an organization promotes Its existing products or arrives in a new market. E. G. Overseas, for example. With potential for over 250 new their product ranges reach a wider customer base. Expansion of their franchise business in Western Europe. Launch of M&S. com will provide a global reach for customers for maximum market development.
M&S growth strategies through diversification Diversification is where an organization produces products or services which are very different to its core activities, so that new products/services are being introduced to new markets. M&S have introduced their own bank and have attracted a number of customers interested in an alternative to the main high street banks. The company has launched its own mail order service alongside new gifts, hamper and flowers online business. Introduction of pet/car/home/travel insurance to compete in the insurance market.
Customers can now manage their household energy provision through meanderer’s. Com as the company rivals other brand utility companies. M survival strategies A survival strategy is where an organization reduces costs or cuts back to either simply survive as a whole business or recover in parts of their operations. M’s cent market share decline has caused senior management to review their supply chain efficiencies to improve margins wherever possible. The company is constantly looking to reduce costs wherever they can.
Outsourcing of delivery services. The company is striving to seek quality fabrics at lower prices with its suppliers. M&S branding strategies Branding is where a company has a consistent theme which is easily recognized by its customers. M&S has built its reputation on quality and trust reinforced by its “Only M&S” campaign ” Leading actors and personalities have been recruited to revive familiar yet aspirations qualities to promote the brand through a series of television, magazine and billboard advertisements.
M&S prides itself on its refund service and has built a reputation of always providing customers either refunds or store vouchers regardless of how old the item they return is. Their recent 130 year birthday played a large part in their brand promotion, building on nostalgia and trust from its valued customers. M&S relationship marketing strategies Relationship marketing is where an organization focuses on the long-term allegations it has with a customer by identifying their needs and providing products and services which satisfy those needs.