Fashion Marketing and Advertising. Marks & Spencer - Essay Example

Introduction Base on company website, Michael Marks and Tim Spencer established Marks & Spencer (M&S)—the largest clothing retailer in UK since 1884. The joint venture of M&S had gained its name for over 125 years founded by the 5 key principles of: quality, value, service, innovation and trust. “To make aspirational quality accessible to all” is the mission of M&S. Last 2004, Stuart Rose was appointed as the new Chief Executive of M&S. According to Stuart Rose, M&S is now in its move to reach the ambitious goal of the company – to become the world’s most sustainable major retailer by 2015. M&S continues to create new product design to cope up with the different issues and threats in the economic environment. Limited Collection brand is the fashion-forward brand of M&S created last 2004. The new face of Limited Collection is aimed to attract the young generation of women below -35. According to M&S, “it is the latest contemporary cut straight from the catwalk and brings a whole new attitude to style.” Though M&S had established its name over years, Limited Collection brand being new to the industry will be open to possibilities of threats from the simplest to the most complicated one that should not be overlooked. Generally, M&S makes the use of certain management strategies to anticipate threats like competition in the current retail environment. Thus, the purpose of this paper is to systematically gathered data, record and analysis of information concerning Limited Collection brand in the external marketing environment. Without this marketing research it would be impossible to deal with the competitors by making use of different marketing strategies. A marketing and advertising plan about the Limited Collection brand will be given focus as well as the analysis on how M&S manage to undertake the competition in the current retail environment that would make the brand successful. Marks & Spencer: Analysis of Consumers The success of the business lies entirely to the customers. Once the companies have them, customer should be satisfied by meeting their needs and demands. M&S is doing the same way, to prioritize its 21 million weekly customers. Being the largest own-brand retailer in Britain, M&S has globally expanded its target market and range of product to cater different customers with different preferences and behavior. Providing the needs of the customers is the top priority of the M&S management. The slogan “Every Woman, Every Time” had remained a great impact to the customers for womenswear and lingerie product of M&S. Even if there is a marked down of market shares for women (-0.6%) and menswear (-0.4%) this year compared to last year’s performance, M&S still remains the number one brand on the high street (M&S Annual Report, 2009). This shows that M&S consumers are still patronizing and remain satisfied in the product in the market. Figure 1: Satisfaction Levels with Marks & Spencer Analysis from the illustration above shows that Marks & Spencer customers are satisfied with the product offered by M&S. M&S search for potential opportunities, formulate new product line with high quality and of great value. The Limited Collection brand at M&S is the new product design that will give customer satisfaction so that sales and revenue will be attained. M&S has over 600 domestic stores in United Kingdom trading its core product (clothing and food) but as the business expands with almost 295 international stores, M&S now offers variety of food, home and beauty products. M&S in Britain first initialize the innovation and exploration of textile which the company improves its relationship from the working to the middle class clientele. Although the management is highly concerned in improving relationships with its valued customers throughout the world, unexpected problems are unstoppable. According to Stuart Rose, customer criticism is helpful for the company, to know what to improve and how to do it. Limited Collection: Marketing Mix M&S is still the largest retailing industry for 125 years of its existence; its brand has been patronized by many consumers for the quality guaranteed product at great value they offer. According to customer’s feedback, M&S clothes are not fashionable and very traditional; because of this, it did not catch the attention of modern market. Thus, Limited Collection at M&S is highly intended to attract the young audience. The design is highly fashionable for all occasions and seasons. To make the brand more attractive to the young generation (below 35 years old), the concept of Limited Collection is redefine to be in line with the latest fashion and trend among the young age group. The pricing of this quality product is base on premium pricing. People would still purchase the product even at a high price for they think that the product is of high quality and a sign of self worth. To encourage customers to purchase Limited Collection, its entry level price is highly competitive among other high street retailer. In premium pricing charging, M&S uses differentiation strategy, to make the customers distinguish the better product they offered compared to its competitors. “Exclusive for Everyone,” is the tagline used by M&S in its high-profile marketing strategy for women. M&S had made several successful campaigns in catching customer’s insight. Although the management had reduced its marketing expenditure from £139.4m (2008) to £127.4m (2009), “M&S will delivere campaigns that our customers could relate to in a downturn, while reaffirming our quality credentials,” says Steven Sharp, Executive Director of Marketing. Another promotional strategy of M&S brand is through its “community-focused activity” (Brand Republic, 2005). To make this strategy visible to the market, M&S is highly concerned in its distribution channel. M&S now is not only using the traditional type of advertising through television, national newspapers and magazines. Like many other business industry, M&S is now using the digital marketing activity—the use of internet through the website as one of their distribution channel. Recently, M&S is now using the new promotional brand (Martinson, 2006), Your M&S which was introduced by Steven Sharp (M&S Executive Director, Marketing). Through the company website, the customer will get attracted by the on-line selling and in-store merchandising that will bring convenience to the customers. The plummeting of profits experienced by M&S was caused by the fewer customers need awareness that is why the management is focusing and giving high attention to its promotional strategies to get consumers’ interest. Even if Limited Collection brand at M&S offered the best products, it would still be useless without promotion because people will not know what the brand offers. Lily Cole is one of the celebrities who are being used by M&S to advertise the new Limited Collection brand along with other celebrity line-up for summer this year. Limited Collection: Segmentation, Targeting and Positioning Being the number one high-street retailer in Britain, M&S has a lot of competitors. Through market segmentation, M&S can easily identify the needs and demands of group of customers among its competitors. The Limited Collection target consumers are the young generation of “fast-fashion.” M&S wants to have narrow segment so that it can easily determine the preference of that certain segment. Focus strategy (one of the generic strategies of Michael Porter) is adopted by M&S by using demographic segmentation to select its target customers. Through demographic segmentation, M&S can easily obtain the information like age, gender, etc. of its target market for they are much available in the market. This is a strategy in which the Limited Collection will focus only to the narrow segment (young market) to give better service and to capture customers’ loyalty. M&S as global retailing industry and a shop keeping leader in Britain, segments its market through the present and possible needs of its customers. To be the leading and successful retailing industry not only in United Kingdom but also in international market, M&S creates a new product design and introduce it to new market segment. The launching of Limited Collection brand as a new product design of M&S will give a company’s better image and impact to its customers. It attracts the target market of age group which says that the brand is highly fashionable and has excellent quality. Individual customers have different needs, preferences and behavior (Rudra, n.d.). Target marketing is the next step after M&S has segmented its market; it is now time to concentrate on one or few key segments. According to the company website, the M&S is penetrating on the older market which is the 30 plus age cluster, high wage earner and executive cluster in society. After M&S had introduced the new product design Limited Collection, the brand successfully positions a distinct place in the minds of the modern market. Limited Collection: SWOT Analysis Strength, weaknesses, opportunities and threats (SWOT) of Limited Collection at M&S should be revisited to clearly understand its position in the industry. According to customer’s feedback, M&S offers traditional and non-fashionable clothes. Apparently the young audience did not bother to shop at M&S for the clothes are not in line with the trend. Strengths – Limited Collection brand at M&S has specific target market -- young generation. It has established trust among its customers for it provides high quality product with great value. The profitability despite of recession, based on 2009 Annual Report released by M&S, has successfully maintained the strength of its balance sheet and cash flow position. Limited Collection at M&S also has a strong brand image being the largest retailing industry. Like its competitors, it allows online shopping, through its company website. It uses variety of campaign and advertising strategies that successfully attract the target customers. Weaknesses – The geographical concentration of Limited Collection brand in UK market makes it weak to the market conditions. Customers are dissatisfied because the clothes are not usually fit and trendy. Although the customers will know more about Limited Collection in the company website, the limited online business operation is disgusting. The price charging of Limited Collection is premium priced; the price should be competitive among its competitors. The target consumers of Limited Collection are dominant in Britain, so the company should be more focus on advertising and campaign strategies. Opportunities – M&S has many stores located in different parts of the world. It is an advantage for M&S to expand the business internationally. The company has new acquisition, the Limited Collection brand that would certainly increase the revenue of the company. Limited Collection price charging is restructured to have competitive pricing among its competitors without modifying the quality of its product. M&S has an opportunity to widen the scope of its limited online transaction and improved the website with additional services that would introduce the Limited Collection products. The company also has the opportunity to broaden and maximize the use of available technology to have customer appeal in all age group. Threats – Limited Collection brand at M&S major threat is the extreme competition among UK’s top retailers such as: Tesco, Asda, Waitrose, Morrisons and Sainsburry. It is notable that these companies are really doing their best to compete in the market that would really threaten the stability of the brand. The uncertainty of the economic condition especially in UK would really test the strength and flexibility of M&S financially. 1 year (2010) Marketing proposal: SOSTAC format Just recently, Marks & Spencer Limited Collection brand is successfully introduced in the market because it maintains the number one brand for clothing. The success of the Womenswear Limited Collection brand introduced last 2004 was followed by the launching of Limited collection brand for men (press release, Feb. 2009). The success of the Limited Collection brand will be determined through this marketing proposal applying the SOSTAC Analysis. Situation Analysis Product and Organization M&S is the largest clothing retailer in Britain. It gains the loyalty of its customers through its high quality products with great value. M&S has a strong brand image which that it would like to maintain all throughout. But just recently, because of the unstable economic condition, tough competition in the high street and customer’s change of preferences, M&S clothing industry is not performing well. Based on the 2009 Annual Report of M&S, there is a decline of -0.6% market value share in its womenswear, from 11.1% (2008) to 10.5% (2009) and so with the menswear. Though, M&S is still the number one brand in UK, the downturn of its sales reflected shows that M&S is no longer unique and it needs to redefine its offer before it will be left behind. Sales figures of the company are not doing well and to address this big threat, M&S launches its new brand –the Limited Collection. M&S chief executive Roger Holmes has been quoted as saying: "By creating a clearly defined brand with its own identity and shop fit, Limited is an important step in our strategy of segmenting womenswear" (Marketing Week, 2004). Market and Competition The new Limited Collection brand offers clothing, accessories and footwear. This has been released to attract the young generation which is the largest sector in Britain. M&S have different competitors but it dominates the market in clothing industry with 43% market share, compared to Store House (14%), Sears PLC (11%), NEXT (6%) and Burton (26%). Customers Regaining the confidence and meeting customer taste and preferences are great challenges on the part of M&S Limited Collection brand. The company is quoted to have traditional and unfashionable clothes. That is why, apparently, M&S is having a hard time pleasing the modern market. UK current trend of clothing demand is fashionable, low priced and right fit clothes in which few of M&S competitors are taking advantage in it. Through customer’s feedback, M&S is working hard to deliver and to meet the changing needs of the young age. Without turning back to M&S traditional customers, the young audience is now the focus of M&S because of its great population. Objectives Marks & Spencer’s main objective is to attempt to change the people’s insight about its brand, which starts with the launching of the Limited Collection brand. For M&S customer’s perception is important for them to make Limited Collection bring its own identity apart from its. Limited Collection brand will make M&S grow its business and become the biggest brand for women. Like many other M&S brand (Per Una, Autograph, etc.), the management is expecting that this highly fashionable brand will create its own identity that would lead M&S in unstoppable success. Otherwise, if M&S sales would still not recover, that would surely put the company to a displacing situation. Through Limited Collection brand, a modernized environment will be created and will become attractive to the modern market. It is not impossible for M&S to change consumers’ perceived image of the powerful brand created by M&S long time ago. Strategy M&S Limited Collection brand uses marketing communications to reposition its brand into a quality brand in terms of fashion. There are various strategies that M&S would do just to regain its customer’s choice. M&S like many other industries today, uses the digital marketing activity, the online selling and merchandising. With the use of the internet through website, customers will just browse the company website and have all the information needed about the product. From the latest style, best selling and new offers of Limited Collection it would be much accessible to the customers. Aside from the online shopping, M&S now also uses the mobile phones and mobile devices to increase the awareness of its customers. Limited Collection brand at M&S is also using the celebrities in its campaigns. Tactics By using the new website introduced by M&S consumers will be encouraged to just browse the internet and do online shopping. With this help, Limited Collection brand will be easily introduced in the market. According to The Nielsen global online survey which was conducted last November 2007, “over 85% of the world’s online population has used the internet to make an online purchase,” the highest percentage of 93% comes from Europe. Customers of M&S through the use of their mobile phones and mobile devices can now browse and shop on the website. Action Last 2004, the company introduced Your M&S. Through this new offer of M&S, its customers would have an easy access to the different products of the new Limited Collection brand that customers want to see and learn about the product. M&S is constantly listening to the changing preferences and taste of its customers specially the young generation. Recently, M&S launches its new mobile phones and mobile devices designed to further serve its clientele needs. It is highly competitive among its competitors because this new development is the first in UK. Control Your M&S is successful and has proven its success. M&S customers are encouraged to browse the company website and see exciting product of M&S Limited Collection Brand. In other way around, the customers through the use of their mobile phones and devices, they can now browse the M&S site. The management is expecting that the 21 million customers would grab the new offered mobile retailing. M&S will not stop to cater the needs of its valued customers. They will do more market research, strengthen its marketing campaigns and use customer’s insight in enhancing product line. Limited Collection would not only be limited to the modern market but also the traditional. The use of internet as channel distribution will really help M&S to regain its position being number one. Conclusion M&S launches the new Limited Collection brand to address the changing preferences of its customers, who are the young market. “Fast-fashion” is the trend that M&S wants to remodel its product in the clothing market. Despite of extensive market research base on its customer’s insights and feedback, M&S is not exempted in the unforeseen problems in the market which greatly affect its sales figures. The rapid competition in the market was among the major threat that M&S had to surpass. Downturn of its market share is the result of this intense competition. M&S conducts operations using variety of campaign, redefining its company website to offer more information, and the uses of mobile devices to access the site are good strategies. In this way, Limited Collection brand of M&S would surely make its own identity and become the best brand in high street. Personal Reflection Gathering information and analyzing its data is what market research all about. While doing the marketing proposal about Marks & Spencer I felt the intent need to know more about the company. Knowing its products, services, people, marketing strategies adopted and so on is not that quite easy. I realize that market research is important before wasting money on advertising that doesn’t give a good result and developing product which is not the preference of the customer. The limited information about the product is one reason to make the research easier said than done. There are different points of views from different authors that should be taken considerations that I should look into so that I can give the right interpretation. Being with the team in doing the marketing proposal was such a great aid. Brainstorming about the different views and ideas about the topic were being gathered and carefully analyzed to make the proposal effective. Reference Lists Barth, K. Karch N.J. Maclaughlin K. & Shi, C.S., 1996. Global retailing: tempting trouble. The McKinsey Quarterly, (1), pp.117+. Benjamin, K., 2009. Battle of the brands: John Lewis vs Marks & Spencer. BrandRepublic, [internet] 09 Jan. Available at: http://www.brandrepublic.com/InDepth/Features/889701/Battle-brands-John-Lewis-vs-Marks---Spencer/?DCMP=ILC-SEARCH [Accessed 17 May 2010]. Bizcovering, 2008. A case study on Marks and Spencer. [Online] 24 July. Available at: http://bizcovering.com/major-companies/a-case-study-on-marks-and-spencer/ [Accessed 18 May 2010]. BrandRepublic, 2005. 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