The Role of Internet and Interactive Media in the Strategy of Marks and Spencer - Essay Example

?Internet and Interactive Media – Marks and Spencer (M&S) Introduction Internet and interactive media are constantly playing crucial role in the success of organizations all over the world. With the rise of awareness of customers towards the internet, most organizations have transformed their businesses in order to attract quantity of customers towards the organization. One of such organizations is Marks and Spencer. The aim of this assignment would be to evaluate the infamous organization, Marks and Spencer; a UK leading retailer that has quite high customer traffic i.e. 21 million customers in a week. The assignment would start with defining and evaluating the type of company M&S is. This would help to evaluate the organization as well as the area of focus of the company in such competitive environment. Secondly, the creation and development of the brand image would be taken under consideration. This indicates that the sources that the company constantly uses would be assessed and evaluated in order to find the factors that have helped the organization to survive and grow in such cut-throat retail environment. Content would also be taken under consideration after this. In content, the area of focus would be to evaluate the organization’s marketing mix that has helped the organization to attract the customers over long period of time. This would also help to evaluate that how does the company constantly update its marketing mix in order to remain fresh in the eyes of the customers. Creativity and design are often the most important factor in success. This creativity and design would be evaluated to identify the modes or tools of advertisement used by the organization to create awareness and gain customer’s attraction in the market. In addition, the reduction of clutter in the world of advertisement would also be evaluated under the same heading. E-commerce has gradually entered the corporate world which makes the evaluation of e-commerce of M&S quite crucial. The evaluation of E-commerce would help to indicate that whether e-commerce is just a primary objective or secondary objective. In addition, the use of mobile strategy is at its peak due to which this factor would also be taken under consideration during the evaluation of e-commerce. Next, the assignment would aim to evaluate and identify the ways through which the organization develops relationship with the customers in the market. Furthermore, the type of buzz marketing used by the organization would also be evaluated which would help to identify the reasons which led the organization to survive and grow over such long period of time. In addition, the presence of organization on social media would also be included and evaluated under this particular heading. Next, the data mining outside of purchases of the organization would become the spotlight of this assignment. It would help to evaluate all the sources used by the organization to accumulate the data gathered through sales promotion, personal sales, direct mails and programs introduced by the organization. This would be followed by evaluation of public relations. This would help in the evaluation of the organization’s ability to provide the customers with relevant information regarding the company along with the products and services offered to the customers. In addition, it would also help to evaluate the ways in which the organization communicates with its target audience in the market via its website. Lastly, this assignment would evaluate the use of other IMC elements used by the organization i.e. traditional media to create awareness regarding the company’s website. This would also help to identify the reasons for the use of traditional media while other more effective sources are available in the corporate world. Marks and Spencer Overview Marks and Spencer is one of the leading retail organizations in UK. The prestige and reputation of the company can be evaluated through 21 million customers visiting the retail outlets each week. The company not only provides the customers with quality products but offer them with experience in the retail store than cannot be created or provided by any other rival in the retail industry. The company is known for its stylish and high quality brand offered to the customers along with clothing and home products that are of high values in the world of retail business. In addition, the company also offers its customers with wide variety of quality foods that is sourced from all around the world from 2,000 reliable and trusted suppliers. The company employs over 78,000 people in the UK along with the rest of the world. The company currently has 700 stores in UK, with an outstanding expanding business in the international market (Marks and Spencer plc). Type of Company Marks and Spencer could be regarded as an organization that is constantly trying to establish its presence in the international market along with the local market. To do so, the organization has focused on using internet as well as retail stores to create awareness regarding the products and services offered by the organization. This means that the organization is not a pure internet based organization but focuses on a combination of both internet and retail stores (i.e. brick and mortar). To create awareness regarding the organization’s presence in local and international market is one of the priorities of the organization since 2010. To do so, the organization is constantly focusing on the use of brick and mortar strategy. This means that the organization at one hand is constantly trying to provide the customers with shopping experience through its retail stores and at the other hand, is using internet as a source to provide information along with all the products and services offered by the company which is eventually aimed to provide convenience to the customers. The use of such strategy has provided the organization with an ability to enhance its online traffic share with an average of 3.4 million customers within a week which is 11 percent higher as compared to previous year. To further enhance the shopping experience as well as convenience of the customers, Marks and Spencer have invested heavily to improve and update its corporate website through which the customers can gain relevant information regarding the products and services offered by the company. In addition, the organization has added extra convenience by providing the customers with an opportunity through next day delivery options. Furthermore, it has been observed that the organization’s website not only provides information but also provided the customers with an ability to view products through zoom and video. Furthermore, the launch of Outlets online the customers are provided with an opportunity to gain more discounts on clothing range of products. This outlets online i.e. website, received over 1.1 million customers within the first six week of its introduction (Marks and Spencer plc). Establishing Brand Image Marks and Spencer is undoubtedly the most famous retail stores in the eyes of customers in terms of fixtures. The organization that was constantly failing to establish a unique brand image in 2001 was able to enhance its reputation and sales by establishing ubiquitous brand image in 2004 by making fixtures that were a barrier to organization’s success and its brand image. The reinvention of core values was one of the fixtures that the organization made in order to establish its brand image. When the company realized the importance of advertisement and its role in the development of brand image, the company launched its campaign in which the top British models were skipping through the London. This campaign was not just only an award winning campaign but was also a great fixture that helped the organization to appeal across the age ranges. On the other hand, to establish a unique brand image in such competitive environment in the 21st century Marks and Spencer have used one of the most known celebrity i.e. Joanna Lumley for their shopping campaign (The Stories Team). The use of such celebrity would help the customers in the world realize the importance of clothes in people’s daily lives. In addition, the campaign would gradually help to create awareness regarding the recycling and its importance to protect the environment to promote sustainable living. The company has variety of products offered to the customers due to which the company appeals to different target audience all the time (Baker). The CEO of Marks and Spencer, Marc Bolland, in the company’s marketing plan indicated that the company is constantly focusing on fulfilling the needs of its target audience. In order to do so, the organization would continue to feature diverse models in advertisement representing different sizes, shapes and ages in its TV commercials. Such advertisement would help the customers to understand that which type of Marks and Spencer’s product would fit and suit their body type. The company has relied upon the use of such advertisement in earlier years which have helped the organization to establish a unique brand image due to which the organization plans to continue the use of celebrities and top models in future advertisements. In order to establish a unique brand image, it was observed that the organization abandoned one of its hallmarks i.e. the way in which the organization operates in the corporate world (Smarta). Marks and Spencer started selling branded products for the first time in its history which eventually was positively accepted by the customers as it was helping the customers to ease their daily live shopping. This indicates that the organization changed the way it had been doing business in the corporate world as the ways were getting old and had no intrinsic value for the customers. Marks and Spencer operates in a highly competitive market due to which the company faces stiff competition from variety of organizations. One of the markets that Marks and Spencer operates in is Food market in which the company faces stiff competition from some prominent supermarkets such as Tesco, ASDA, Safeway and Sainsburry. Such competitors not only provide the customers with high quality products but also products that offer them high value which eventually helps such organizations to build and enhance customer’s loyalty. On the other hand, the company also operates in clothing market in which the organization faces stiff and cut-throat competition from GAP, Next, Topshop and some other highly established organizations that offer the customers with fashionable brands (Hoovers). On the other hand, in luxurious market the company faces stiff competition from Selfridges and Harrods that offers the customers with high shopping and lavish experience. In addition, the luxurious goods offered by such organizations ranges in price from moderate to high due to which the customers in the market prefer such competitors over Marks and Spencer in the luxurious market (Hennessey). The uniqueness of Marks and Spencer lies in its style of advertisement which is quite different from the major and dominant rivals like GAP, Tommy Hilfiger and American Color of Benton and A&F in the industry. Being an international brand, the company has positioned itself along with its brand in a variable manner. The company’s positioning is based on the country as well as the culture. This indicates that the promotion of the company varies from country to country it operates in. The Marks and Spencer’s clothing is positioned in such a way that the products offered by the organization are associated with relaxation and high quality. Content Being an international brand that is constantly associated with quality and relaxation cannot afford to be associated with swanky store for middle class due to which the organization constantly update their marketing mix to provide the customers with variety of products and services to fulfill their needs and desires to look beautiful and healthy. With the help of marketing, the organization has provided itself with an opportunity to strengthen the brand image of Marks and Spencer (Crux). The introduction of e-commerce and Outlets online, the organization has gained access to information related to customers and the way they make their buying decisions. Based on such data provided through online transactions, the organization constantly provides the customers with discounts which eventually influence the customers to shop again at Marks and Spencer’s website. On the other hand, it was also observed and indicated in an article that the organization updates its marketing mix based on seasons. This indicates that the organization’s marketing mix is directly or indirectly influenced by the changes in the season. The company continually works towards providing the customers with price discounts. In addition, Marks and Spencer is aiming to revamp and reinvigorate its clothing sales particularly in women swear to provide the customers with a reason to return to the retail outlets of the company to witness the eye-catching products offered by the company. Creativity/Design Marks and Spencer is a retail titan that could be regarded as an organization that is one step ahead of the competitors in the market. The company uses brick and mortar strategy which aims to attract and influence customers to visit the stores in the market by constantly investing in the store ambiance and environment. The recently launched organization’s web portal provides the customers with an opportunity to navigate the products and services offered by the organization with additional features of zooming in and out along with video support. In addition, it has also been indicated and witnessed that the company’s website provides the customers with all the necessary information regarding the company along with its long and everlasting history. Furthermore, the products and services offered by the company are organized in an acceptable manner which could gain customer’s attention in wink of an eye. The online retail stores have proved to be of great use for the organization as with the introduction of company’s website, it has been indicated that the organization was able to attract more than 2 million customers within a week. In addition, with such introduction of website the organization was able to enhance customer’s traffic along with its sales as compared to earlier years. The website is supported by video through which the customers can gain information related to their desired products along with the benefits that could be achieved with the use of the products offered by the company. Such communication of the product through the use of video has supported the organization to great extent as the company would not have to elaborate the customers regarding the products and information related to it. Pop-ups are used by the organization to provide the customers with information regarding the organization and the latest promotion offered by the company for its prestigious customers. This have played an essential role in minimizing the clutter in the world of advertisement which eventually provides the organization with upper hand in the clustered corporate world where each organization aims to attract and influence the customers to purchase at their retail store rather than any other store in the market. Use of E-Commerce E-commerce strategy have become one of the most essential strategy for Marks and Spencer as with this strategy the organization is provided with an opportunity to attract and influence mass customers to make purchases with the use of internet. E-commerce has played a fundamental role in the achievement of organization’s vision i.e. to become a leading international multi-channel retailer. With the use of e-commerce and advancing technology, the organization aims to provide the customers with seamless and high quality shopping experience that could not be gained or achieved anywhere else in the market. With an aim to become the leading international retailer, the company introduced and launched its first website in the year 2007 with the collaboration and partnership of Amazon. The primary objective with such e-commerce website was to provide the customers with an opportunity in the market to shop at M&S’s online stores. The e-commerce website was launched to increase the performance of the organization in the world of retailing. In addition, the corporate website would provide the organization with an ability to reach mass target audience all around the world via internet (Computing). On the other hand, the company also launched variety of locally-tailored websites to engage the customers to purchase products through the use of such websites. The websites were launched in such countries where the organization’s retail outlets were already established and were performing perfectly in the market (Computing). Similarly, it has also been indicated that the organization launched its website in French language with an aim to once again establish its roots in the country. Due to decline in sales and poor performance in such country, the organization had to pull out its retail stores from France in 2001. The launch of such website would allow the organization to once again set foot in the market (Chloe). Mobile strategy cannot be overlooked when discussing and evaluating the e-commerce of Marks and Spencer. It has been indicated and observed that the organization is one step ahead of competitors in the world of e-commerce and technology. In addition, to boost the in-store experience the organization is aiming to trial of mobile payment application from next month. This would further enhance the convenience of the customers (Hall). Developing Relationship with the Customers One of the key aspects of relationship management is to create strong sense of trust, commitment and respect between the organization and the customers. The retail titan could be taken as an example in researches regarding customer relationship management as the company is one of the most trusted organizations in Britain for the second year. Due to such high level of trust, the organization has provided itself with an opportunity to remain the first priority of customers when it comes to shopping (Josh). TV advertisements have played crucial role in organization’s success. With the help of such TV advertisement, the organization has broken down the ill-conceived reputation regarding its brand which eventually helped the organization to enhance its reputation along with a boost in trust. On the other hand, it has been reported that the organization uses social media as a marketing tool to provide the customers with information regarding the company along with updates regarding the products and services offered by the company. It has been indicated that the organization in the year 2010 had 160,000 fans on Facebook along with 14,000 followers on Twitter to create hype in the customers regarding the introduction of new products and services by the company (Computing). Data-Mining Outside of Purchases In order to gain data outside of purchases, the organization frequently uses sales promotion in which the customers are provided with discounts on the products. The seasonal discounts not only provide the company with an added advantage in terms of data but also provide the organization with an opportunity to attract potential customers along with loyal customers to make purchase. On the other hand, the quality of the products offered by the organization eventually influences the customers to tell their relatives and family members along with friends and peers to shop at Marks and Spencer’s retail store. The word-of-mouth advertisement has helped the organization to gather significant data regarding the customers and their purchase frequencies along with the type of products preferred by the customers. Public Relations The organization’s website covers all aspects essential about the organization and its operations. The company has a separate section within its corporate website that covers all the information related to the company as well as the press releases along with reports and publications to inform the customers and potential customers regarding the company’s operations. In addition, it has also been indicated that the organization is constantly trying to update the customers regarding the organization through the effect use of media sources. On the other hand, the organization has developed plans for sustainable living and environment due to which the organization is continually influencing the customers to take part in recycling plans initiated by the organization through which the customers can play an essential role in helping the organization to promote green and safer environment. With the help of such initiation, the company has gained a lot of popularity and increased in reputation in the following years. Other IMC elements It has been indicated that with the new appointed CEO, the organization took a new leap in the corporate world in terms of communication with the customers. The company was first a purely retail organization which had huge interest in improving the customer traffic in retail stores but with the passage of time, the organization initiated a plan to introduce e-commerce website with an aim to enhance its performance and sales. To drive the customers to visit the website of the company, the organization has high social media presence which promotes the organization’s e-commerce websites. In addition, the celebrities endorsed by the organization have also played an essential role in promoting the organization’s website which eventually led to the increase in customer’s traffic on the website. Conclusion To conclude, it could be said that the organization constantly uses the internet and interactive media to inform the customers regarding the newly introduced products and services. In addition, the celebrity endorsement is one of the strategies that have allowed the organization to revamp its sales and performance in such competitive market. Website has played a crucial role in attracting and influencing the customers to purchase from the organization as with the introduction of website, the organization was able to reach mass target audience within the target market more easily and accurately. Works Cited Baker, Rosie. M&S CEO outlines marketing plans to boost sales. 6 Nov. 2012. 3 May. 2013. http://www.marketingweek.co.uk/news/ms-ceo-outlines-marketing-plans-to-boost-sales/4004654.article Chloe. M&S launches new French website. 11 Oct. 2011. 3 May. 2013. http://internetretailing.net/2011/10/ms-launches-new-french-website/ Computing. M&S build and manage a new e-commerce platform. 9 Nov. 2010. 3 May. 2013. http://www.computing.co.uk/ctg/news/1895886/m-s-build-manage-commerce-platform Crux, James. Marks and Spencer smartens up. 11 Apr. 2013. 3 May. 2013. http://www.sharesmagazine.co.uk/news/marks-spencer-smartens-up#.UYn6MkpqRko Hall, Kathleen. Marks & Spencer trials mobile payment app in stores. Apr. 2013. 3 May 2013. http://www.computerweekly.com/news/2240180596/Marks-Spencer-trials-mobile-payments-app-in-stores Hennessey, Rachel. British retailer Marks & Spencer struggles to do it all. 1 Sep. 2013. 3 May 2013. http://www.forbes.com/sites/rachelhennessey/2013/01/11/retailer-marks-spencer-struggles-to-do-it-all/ Hoovers. Marks and Spencer Group plc Company. 3. May 2013. http://www.hoovers.com/company-information/cs/competition.Marks_and_Spencer_Group_plc.57cd81b1250f9d56.html Josh. Marks and Spencer – Customer Relationship Marketing. 23 Jul. 2010. 3 May. 2013. http://manifestedmarketing.com/2010/07/23/marks-and-spencers-customer-relationship-marketing/ Marks and Spencer plc. Company Overview. 2013. 8 May 2013. http://corporate.marksandspencer.com/aboutus/company_overview Smarta. Lessons in sales strategy from M&S. 3 May 2013. http://www.smarta.com/advice/sales-and-marketing/sales/lessons-in-sales-strategy-from-mands Read More