1. Management Summary
The retail market is changing rapidly from click to click (Price Waterhouse Cooper, 2008). and the “online market is developing at an astounding rate” (Internet Advertising Bureau, 2008).For example the online advertising has overtaken direct mail with a market share of 11.8% (Internet Advertising Bureau, 2008). Many retailers are using innovative ideas to help them be distinct from their competitors and to meet the needs of consumers. For example an extreme sports store in Florida has its own surfing stimulator inside its shopping mall (Springwise, 2008). The retail sector is a highly dynamic market offering customers more choice and retailers are consistently competing in a highly competitive environment.
M&S is market leader in the field of predominantly non-food middle market and a large company with more than 650 stores world wide. It is a challenge for M&S to meet the needs of customers as customers shopping habits are always changing. “Customers often switch retailers as they become increasingly familiar with and bored with a retail store” (Babson, 2007) and there is consistently a desire for constant newness (Mintel Report, 2007). The result is a melting product life cycle and a high pressure on the retailer. M&S have to scan both the internal and external business environment to identify long and short term trends and develop a strategy with both aims and objectives to remain a successful high street retailer.
This coursework is based on comprehensive primary and secondary market research which will allow the group to develop a greater understanding of the current market situation. The focus of this coursework is on the non-food clothes home market of Marks & Spencer, because, concerning Michael Porters’ Diamond Model “it suggests that the national home base of an organization plays an important role in shaping the extent to which it is likely to achieve advantage on a global scale” (Michael Porter, 1998).
The objectives of this coursework are as follows;
• To discuss the profile of the existing retailer
• To recommend an effective methodology approach which can be taken by M&S to identify if our idea is feasible.
• To demonstrate our new proposed idea is feasible for the retailer to undertake in terms of offering an additional and enjoyable service to consumers and to gain a competitive advantage.
Table of Contents
1. Management Summary
2. Profile of Marks and Spencer
2.1 Location
2.2 Type of retail business
2.3 Target segment
2.4 Product mix/variety
2.5 Layout of store
3. Results of the market research
4. The proposed new idea
5. Conclusion
7. Appendix
7.1 Further Ideas
New product/service
New layout
7.2 SWOT analysis of the new technology idea
New Location
New position and target Segment
7.3 Environment
Microenvironment
Markets
Competitors
Macroenvironment
Economic
Socio-Cultural
Figure 5.0 Mintel Report, 2007
Technological
7.4 Market research questionnaire analysis
7.5 Store Locations
Research Objectives and Core Themes
The primary objective of this coursework is to analyze the current corporate profile of Marks & Spencer, evaluate the prevailing market situation through primary and secondary research, and propose an innovative, feasible technology-driven service to enhance the shopping experience and gain a competitive advantage.
- Analysis of the Marks & Spencer retail profile and market positioning.
- Evaluation of consumer shopping habits and retail environment trends.
- Development of the "Surprise me M&S" interactive terminal concept.
- Integration of CRM and RFID technology to optimize customer relationships.
- Assessment of the proposed innovation using SWOT analysis and marketing theory.
Excerpt from the Publication
4.1. Description
The basic idea is a small computer display which is positioned near every shop entrance. It looks like a small ATM and consists of only a display and an inside printer. The second component part of this idea is a new Marks & Spencer loyalty card which has a RFID chip on top (RFID Journal LLC, 2002-08). Customers who have our new loyalty card will have the opportunity to get new and customized recommendations daily if they use the new computer terminal. The system is called “Surprise me M&S”.
This additional service is designed for all shoppers who are interested in shopping as a leisure and fun activity and for consumers who have a busy lifestyle and don’t have the time to think about their personal wants and needs. Both target groups belong to the social-economic group ABC1 and the age group 30 to 45. “Surprise me M&S” doesn’t replace the human sales person but will increase the communication time between customer and sales person as they can offer additional customer service when the customer is looking at their recommended products. Furthermore it is possible to give recommendations for product and service combination which are independent from each store department. For example a recommendation list could consist of a new dress, shoes, accessories and the perfect suit case as well.
Summary of Chapters
1. Management Summary: Provides an overview of the rapidly changing retail market and outlines the objectives of the coursework regarding Marks & Spencer.
2. Profile of Marks and Spencer: Examines the current operational structure, store locations, target demographics, and the strategic importance of store layout.
3. Results of the market research: Details the qualitative and quantitative methods used to identify consumer needs and shopping preferences in city center locations.
4. The proposed new idea: Introduces the "Surprise me M&S" concept, focusing on technology integration and the potential for enhanced customer relationship management.
5. Conclusion: Summarizes the findings and emphasizes the necessity for M&S to adapt to shifting macro and micro-environmental factors.
7. Appendix: Includes further development ideas such as in-store events, layout improvements, and comprehensive SWOT analysis and environmental scanning data.
Keywords
Marks & Spencer, Retail Marketing, CRM, RFID Technology, Customer Experience, Market Research, Consumer Behavior, Competitive Advantage, Retail Strategy, Loyalty Programs, Store Layout, Non-food Retail, Digital Innovation, Market Segmentation, Macroenvironment.
Frequently Asked Questions
What is the primary focus of this work?
This report analyzes the retail strategy of Marks & Spencer and explores how the company can improve its competitive position through technological innovations in the store environment.
What are the central themes addressed in this report?
The core themes include market research, customer relationship management (CRM), the role of technology in retail, store environment design, and consumer behavior analysis.
What is the main objective of the proposed innovation?
The objective is to utilize invisible customer behavior data to provide personalized shopping recommendations, thereby increasing customer engagement and corporate profits.
Which methodology was employed for this analysis?
The authors utilized a combination of qualitative interviews and quantitative questionnaires, supported by secondary data from market reports and academic literature.
What does the main body of the work cover?
It covers the company profile, results from market research, the description and IT integration of the "Surprise me M&S" terminal, and an analysis of its benefits.
Which keywords best characterize the research?
Key terms include Marks & Spencer, retail marketing, CRM, RFID, customer experience, and retail innovation.
How does the "Surprise me M&S" system function?
It uses an RFID-enabled loyalty card to identify customers at a terminal near the store entrance, providing them with customized product recommendations and a location map within the store.
Why was the age group 30-45 chosen for the new idea?
The authors identified this group as having busy lifestyles and an interest in shopping as a leisure activity, making them ideal targets for an efficiency-improving, personalized technology service.
- Quote paper
- Sven Hallbauer (Author), 2008, Retail marketing and new retail idea - Marks & Spencer, Munich, GRIN Verlag, https://www.grin.com/document/91167
