Individual Analysis of Marks & Spencers Operations.

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  • Topic: Marketing, Marks & Spencer, Market segmentation
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INDIVIDUAL ANALYSIS OF MARKS AND SPENCER

Executive Summary

Marks and spencer is a group of companies with various ventures that include financial services, clothings, housewares and food. Like several other retailing outfits, M&S needs to provide great competition in this red ocean to claim considerable market share. M&S decided to deepen the innovative inclusions into their products line by focussing strategies after observing a huge decrease in turnover and profit from 1999 with further down trodding in 2000 as shown in the table below. M&S hence, started to pick up in the early 2001 to obtain considerable profit over the time with increasing shareholders returns. Table of financial performances of M&S in 13 years . Year ended

Turnover (£ M)
Profit before tax (£ M)
Net profit (£ M)
Basic(eps)
31 March2008
9,022.0
1,129.1
821
49.2
31 March 2007
8,588.1
936.7
659.9
39.1
30 April 2006
7,797.7
745.7
520.6
36.4
30 April 2005
7,490.5
505.1
355.0
29.1
30 April 2004
8,301.5
781.6
452.3
24.2
30 April 2003
8,019.1
677.5
480.5
20.7
31March 2002
8,135.4
335.9
153
5.4
31 March 2001
8,075.7
145.5
2.8
0.0
1 April 2000
8,195.5
417.5
258.7
9.0
31 March 1999
8,224.0
546.1
372.1
13.0
30 March 1998
8,243.3
1,155.0
815.9
28.6
31 March 1997
7,841.9
1,129.1
746.6
26.7
31 March 1996
7,233.7
965.8
652.6
455.8

Source: Marks and Spencers Financial Performance, Wikipedia.

Mark and Spencer was able to identify their core business in clothing and food. Although, the group include financial services and homewares, over the years M&S have suffered tremendeous setback in their expected market shares while focusing on womenswears of ages 35-55. Note that all companies including M&S can only apply any or all of the three generic strategies,that is, cost leadership, differentiation, and focus(Nonaka et al, 1997). Considering one of M&S’s core products (clothing), it implements a focus strategy, concentrating on a narrow segment (a particular buyer group (executives), market segment (high-end), product feature (uniqueness) and further differentiate the segments as perfect and classic, autograph and per una. Kotler et al defined market segmentation as ways of dividing a market into distinct groups of buyers on the basis of needs, characteristics or behaviour who might require separate products or marketing mixes. It is a step that leads to successful business positioning as it helps the operation procedure of the company. Types of market segmentation are: Demographic

Psychographic
Geographic
Behavioural
Market segmentation allows M&S to treat similar customers in similar ways, whilst distinguishing between otherwise customer groups. M&S uses demographic and psychographic segmentations to select its target markets for its products (focus strategy). M&S targets its customers by age, income, social class, and occupation. M&S targets the 30 plus age group with high income and executive occupation. M&S also bases its market segmentation through value. Many products in M&S’s clothing range have premium-priced, high quality segment , a mid-priced segment and a low-price segment. In such a market, fashion and quality differences can outweigh price variations. M&S segmentation was geared towards creation of a Niche, claiming huge market shares as market leader and pioneering by innovation. They provided three successful range of Womenswears in the Autumn and springs of 2001. The performances objectives of M&S acquires quality, speed, dependability, flexibility, cost, uniqueness, and perfections in all their ranges. The operations management understood the order winners and qualifiers as they listened to customers’ comments.

M&S Clothings’ Ranges and Their Market Segments.
Per una
per una is a range of female clothing sold at M&S stores, launched  as a joint venture between M&S and...
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