M&S Economic Study

3165 words 13 pages
Economics: Assignment

Marks and Spencer's

Marks and Spencer's is a multinational chain of department stores, which sell a wide range women's, men's and children's clothing and footwear, gifts, home furnishings, beauty products, financial services and food, all exclusive to Marks and Spencer's. It is a successful company that has 375 stores in 29 countries worldwide and over 10million shoppers a week. As well as owning the US supermarket group "Kings Supermarkets" M&S website

The company has expanded both vertically and conglomerately. Looking at home ware, foods, flowers, (see appendix) cafés, gifts and cards. They have invested in many different styles of clothing ranges such as Per Una, Per Una Due and the Limited Collection.
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(See appendix)

The demand for their clothes fell rapidly shifting their demand curve to the left as sown in the diagram. M&S have used "non price" tactics for example offering 10% off all shopping when they open an new account card and have introduced the new &More credit card which allows customers to earn points and get money off. These are to encourage customers to stay loyal and give M&S the opportunity to directly mail customers. This type of competition in this Market is that of Game theory. This is where one company analysis its best strategy which will enable them to gain larger pay offs. This means that if the competition can see that this type of strategy is successful they in turn will follow. The firms try to anticipate the other competitors' moves. A situation in which an intelligent decision are necessarily interdependent players trying to maximise their pay offs (profits)

The business needed a complete overhaul, if M&S were to win back their market share. The man appointed to help M&S recover was Belgian retail boss Luc Vandevelde. The company realized that they were ignoring customer's needs and wants. They invested more into research and development in order to identify what consumers wanted and what areas they most needed to improve. They introduced new brands such as "Per Una" by George Davis who successfully built up clothing chain NEXT and the GEORGE range at ASDA. The aim of "Per Una" was to "banish mass market image" and appeal

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