Marks and Spencer: Past and Present Market Strategies
Analyse the turbulent background and market failings of the company in the 1990s in comparison with today’s current successful marketing strategies, tactics and new direction of ‘Marks & Spencer’
In the mid 1880’s Michael Marks established a small penny bazaar, this was to be the beginning of a highly anticipated British success story, however in the midst of there success was an unfortunate decline. Tom Spencer formed a partnership with Marks to create the company Marks and Spencer. The first store was opened in 1904 in Cross Arcade in Leeds.
1990’s
In the late 1990’s Marks and Spencer ultimately hit maturity as a company in the boom of 1998 where they reached a pre-tax profit of over £1 billion, it was the first British retailer to do this. During this period, Richard Greenbury was Chief Executive and Chairman of the company. The success was based upon a few ideas that meant M&S offered high quality garments for a good price. However this meant it was never the cheapest in their market sector. They adopted the idea of buying directly from the manufacturer instead of going through a wholesaler. This led to it entering into long-term partnerships with British manufacturers, which required them to commit themselves to solely producing M&S products. You could not get clothes like M&S anywhere else because of this. This gave a direct approach and feel to the customer. (palgarve) * Number of UK stores: 1985 (before appointment) - 283; 1998 - 300 * Sales: 1985 - £3,213,000,000; 1998 - £8,343,300,000 * Pre-tax profits: 1985 - £303,400,000, 1998 - £1,168,000,000 (wikipedia)
These statistics show the completed financial years 1988-1998 on Greenbury’s tenure as Chief Executive.
However, the following year in 1999 their profit more than halved, showing a dramatic decrease in turnover and profit. M&S failed to adapt to
In the mid 1880’s Michael Marks established a small penny bazaar, this was to be the beginning of a highly anticipated British success story, however in the midst of there success was an unfortunate decline. Tom Spencer formed a partnership with Marks to create the company Marks and Spencer. The first store was opened in 1904 in Cross Arcade in Leeds.
1990’s
In the late 1990’s Marks and Spencer ultimately hit maturity as a company in the boom of 1998 where they reached a pre-tax profit of over £1 billion, it was the first British retailer to do this. During this period, Richard Greenbury was Chief Executive and Chairman of the company. The success was based upon a few ideas that meant M&S offered high quality garments for a good price. However this meant it was never the cheapest in their market sector. They adopted the idea of buying directly from the manufacturer instead of going through a wholesaler. This led to it entering into long-term partnerships with British manufacturers, which required them to commit themselves to solely producing M&S products. You could not get clothes like M&S anywhere else because of this. This gave a direct approach and feel to the customer. (palgarve) * Number of UK stores: 1985 (before appointment) - 283; 1998 - 300 * Sales: 1985 - £3,213,000,000; 1998 - £8,343,300,000 * Pre-tax profits: 1985 - £303,400,000, 1998 - £1,168,000,000 (wikipedia)
These statistics show the completed financial years 1988-1998 on Greenbury’s tenure as Chief Executive.
However, the following year in 1999 their profit more than halved, showing a dramatic decrease in turnover and profit. M&S failed to adapt to