Marks & Spencer: an Analysis of the Demand for a M&S Simply Food Convenience Store in Complexe Desjardins

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INTRODUCTION
In this report we assess whether an M&S Simply Food convenience store would be profitable when located in Complex Desjardins, Montreal. In the U.K. Simply Food possess a strong brand image and wide-variety of products that emphasize quality. Although considered more expensive than competing stores To see if the chain will have the same level of success in Montreal, we first analyzed the fundamentals and competitive landscape of the industry. Once a gap in the market was identified, we used quantitative research practices to examine each of the marketing mix factors involved in establishing the store. Our findings will indicate whether the location and consumer pool under consideration will RESEARCH OBJECTIVES

* Identify the M&S Simply Food products and services, and the factors that drive the chain’s success in the U.K. * Analyze the market fundamentals of the convenience store sector in Montreal, and identify whether a market gap for quality, high-end stores such as M&S Simply food exists * Assess whether M&S Simply Food will be profitable in Complex Desjardins based on the following factor: (i) Location

(ii) Consumer Demographic
(iii) Consumer Preferences
(iv) Competition & Pricing
* Propose key operating and marketing strategies to ensure the success of M&S Simply food in Complex Desjardins. METHODOLOGY
Industry Knowledge
Exploratory research was employed to gain understanding of the U.K. convenience market and lean how the M&S Simply Food chain is positioned. This involved a review of studies and data made available by leading international research institutions, as well as informal discussions with consumers who previously lived in London and are familiar with the brand. We applied the same methodologies when conducting a similar analysis of the Montreal convenience market. In this stage of our research we were able to apply more formal approaches, such as conducting in-depth interviews with store managers. After all the necessary information was acquired, a qualitative comparison of the industries was made to determine whether opportunities existed for M&S Simply Food in Montreal and whether a repositioning of products would be needed.

Target Market
From our previous analysis we establish a target market: consumers at the Complex Desjardins. This location is one of the main attractions in Montreal, at a vast 4 million square feet. Roughly 30,000 people come to the complex and its surroundings daily to work, shop, eat and/or enjoy the activities surrounding the Central Square. The Central Square inside the building has a surface of 15,000 square feet and is surrounded by a commercial gallery of 100 stores and restaurants. Thus, this location was chosen because of its notoriety and large exposure to residents and tourists. Survey and Sample Size

To determine whether consumers at Complex Desjardins would be willing to purchase M&S Simple Food products we conducted an anonymous survey on food services within the complex. The survey was a questionnaire made up variety of formats designed to draw out information about the location, demographic, consumer preferences, surrounding competition, pricing comparisons and consumers’ willingness to pay. Interviews were conducted at the Complex Desjardins, as well as within a 500m radius of its surroundings which comprised of Complexe Guy-Favreau, Bleury Street, Place Des Arts and Boulevard Saint-Laurent. We classified qualified respondents as consumers that came through the complex at least 3 times a week. In total, we interviewed 96 people, considering a variability of 50% and a 10% acceptable sampling error at 95% level of confidence. Assuming the total population under observation here is 30,000, it is evident that a 5% confidence interval is well above 96. Thus, no more readjustments are needed due to small sampling size. FINDINGS

Convenience Market
(1) U.K....
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