Enterprise Marketing Marks and Spencer

0 Comment

The founder of the company Mr. Michael Marks started it as a single market stall in Leeds in1884, with the main objective of tailor made products to be sold at moderate price. This was later joined by Thomas Spencer in 1894, and the company started acquiring more outlets and selling only British Made products under the brand name St. Michaels. This was one of the many reasons of its success in the UK, as the products were solely British made, and the business increased with many British manufacturers.
According to the Annual report, Mamp.S, over 21 million people visit Marks amp. Spencer’s each week for their shopping, because of its quality and value for money. From 1974, Mamp.S started its international expansion in Europe and Ireland as discussed by Pellegrini, L. (1994) and today it has a remarkable presence in 39 territories across the globe.
This iconic retailer pitched its success in the year 1998, when it crossed the 1 billion mark, which was highest ever that could be achieved by any retail chain in the UK. But this success story came to sudden downfall and after two years, this empire was in very difficult situation (Goodman 2000. Bevan 2001. Mellahi et al. 2002).
The many reasons behind this slump were increased competition by other retailers, who outsourced their products, the increased cost of production by the British manufacturers increased the cost of production and thus decrease the sale affecting the profit margin.

Another important factor contributing to a low sale was the policy of non acceptance of credit cards. The denial of this universal phenomenon lured the younger and mobile client base to shift to the competing retailers, for the sake of ease. Also its shift from high street fashion to low end products led to the image loss of its quality. The downhill continued for years and the profits dropped from a billion pounds to 145 million by 2001 (Mellahi 2002).
To reform the image loss and slack sales, there were some changes in strategies like:
The company started its online shopping and also the acceptance of credit cards by 2001.
According to Jess Cartner, fashion editor, The Guardian, with the introduction of the new range classical clothing for women: Women’s Institute Chic in the same year, Mamp.S regained its position of being the best loved store of Britain. It also re shifted its focus to the core clientele of fashion conscious and stylish women and did not compete with the retailers in low priced catwalk copies like the Top Shop amp. Hennes.
According to Steven Sharp, Executive Director Marketing, Mamp.S, the challenge for Mamp.S is how we stay ahead of the competition by responding to the things that matter