Marks & Spencer marketing strategies
Marks & Spencer has encouraged the local textile manufacturers to produce more leading to improved quality and flexibility in production and supply as compared to importing raw materials (Tse 2004). The rationale of the chosen topic is based on certain hypotheses. First hypothesis is M&S marketing strategies in London, UK and Istanbul, Turkey are the same and a null hypothesis is that M&S marketing strategies in London, UK and Istanbul, Turkey are not the same. It has been established that the M&S marketing strategies in London, UK and Istanbul, Turkey are the not same.
This is because London has many M&S stores are compared to Istanbul and the London is more interested in the clothing because of the weather changes in the area as compared to Istanbul. The trading currency used in London were weak in value forcing M&S to concentrate on overseas procurement of products and this is may be relatively expensive when it comes to production leading to higher prices of good to customer against M&S philosophy. In London, it was fashion that made the day and so clothing business did well as compared to Istanbul where foods were more profitable (Bowser 2008).
Second Hypothesis is M&S marketing strategies in London, UK and Istanbul, Turkey during crisis will be successful and the Null hypothesis is M&S marketing strategies in London, UK and Istanbul, Turkey during crisis will not be successful. The right answer is M&S marketing strategies in London, UK and Istanbul, Turkey during the crisis will be successful. This is because in London M&S has been faced with the lower value of the Britain pound that has forced them to procure products from overseas and they made strong relationship with the suppliers to ensure a constant supply with the raw materials for production.
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Declination of sales in London was resolved by reduction or sliming of the company where some of the stores were closed down to reduce expenses. This is the best decision to make because the company then had enough time to concentrate on the most profitable products leading to stabilization of their economy (BBC News 2009). Moreover, the top management was ready to for go their bonuses to increase the M&S investments or initiatives aimed at stabilizing their economy.
The aim of this research is to evaluate the critical current marketing activities in retail industry during crisis as a case study of the Marks & Spencer to be sustainable in the dynamically changing market or business environment. The following are the objectives of the study: To carry out a rapid literature review on Marks & Spencer marketing strategies during normal market situations. To study Marks & Spencer marketing strategies during crisis. To critically evaluate the marketing strategies in M&S in London, UK and Istanbul, Turkey during normal market conditions.
To identify the similarities and differences in M&S marketing strategies during crisis in London, UK and Istanbul, Turkey. M&S has been prosperous in its markets and by 1994, it had acquired a market share of about 19% in the UK retail markets with around 34% on women undergarment and over 20%on men suit leading to a total of over 40% of the country’s underwear and around 15% on the clothing markets. The figures translate to double digits making M&S more reputable in the UK’s retail markets (Alon 2000).
The jubilant never lasted and in the 1998 M&S experienced losses amounting to about 34%, later another 50% loss registered in the following year in both local and international markets due to lack of awareness of M&S new brands in the markets. Profit declination in M&S from 1998-1999 was due to unexpected reduced sales, declination in overseas markets and increased importation of raw materials (Rachael 1999). There has been intensified competition locally and internationally from both mega merchandisers and specialty retailers.
M&S managers were blamed for poor management in terms of merchandising, inventory controls and poor response strategies to competitions in the markets. The competitors such as Oasis, Jigsaw and Kookai amongst others have criticized the quality and pleasance of M&S products in terms of color, shape and size depending with the climate, price and personal services (Chapman 2000). M&S has therefore been challenged on all business segments and has been caught unaware with the business spectators and investors. The following four Ps marketing theories were used in Marks & Spencer (Kotler 2003).