P1 Describe marketing techniques used in a business
Marks & Spencer
Marketing Strategy Factsheet
Company overview
Marks and Spencer (M&S) is one of the UK’s largest and longest surviving brands and High Street retailers in the private sector. From humble beginnings in 1884 as a small bazaar, the store saw itself grow into the UK’s market leader in quality clothes retailing up until mid 1990s, however more recently, the company has suffered consecutive falls in clothes and food sales over the last twelve quarters. Whilst it still holds a respectable 11% of the market share there are concerns that this percentage will 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&S growth strategies through market penetration
Market penetration is where an organisation increases its market share of an existing product or service.
Store refurbishment. Aware that their brand had become tired, in 2011 M&S spent £2bn 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 of quality training for maximum customer satisfaction and a more personal service than it has ever provided in the past.
Opening of 150 more M&S 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. 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 café facilities in its main stores so customers were inclined to spend more time and money
Marketing Strategy Factsheet
Company overview
Marks and Spencer (M&S) is one of the UK’s largest and longest surviving brands and High Street retailers in the private sector. From humble beginnings in 1884 as a small bazaar, the store saw itself grow into the UK’s market leader in quality clothes retailing up until mid 1990s, however more recently, the company has suffered consecutive falls in clothes and food sales over the last twelve quarters. Whilst it still holds a respectable 11% of the market share there are concerns that this percentage will 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&S growth strategies through market penetration
Market penetration is where an organisation increases its market share of an existing product or service.
Store refurbishment. Aware that their brand had become tired, in 2011 M&S spent £2bn 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 of quality training for maximum customer satisfaction and a more personal service than it has ever provided in the past.
Opening of 150 more M&S 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. 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 café facilities in its main stores so customers were inclined to spend more time and money