MARKS &

SPENCERS
INTERNATIONAL
RETAILING
INTRODUCTION
The ground of marks and Spencer were laid back in 1884 by lord Marks who
started selling in small town markets of Northern England
Marks & Spencer is the British largest retailer with four main divisions

The target market of Marks & Spencer is middle to high class consumers in
major cities.
From 1914 onwards the company made a lot of technological advancements
and because of its high quality and medium prices Marks & Spencer soon
associated with quality and value able by its customers.
FACTORS WHICH LED
M&S TO
INTERNATIONALIZE
Internationalization of the company was mostly due to the domestic factors.
Internally:
Company started to feel that it has saturated to domestic market and that
expansion will have to come from overseas.
Externally:
Labor Party members were suggesting nationalizing the leading domestic
retailers.
Internationalization was seen as a tool of diversification
Strategic Opportunity

Ne Retail format
w
Retail Format
Diversification
development
Existing

Market
penetration
Market
expansion
Existing New
Target Market
PESTEL ANALYSIS
Political Economic Social
Liberalization in east Rising Incomes Changes in consumer
Europe tastes and lifestyle
Free trade agreements

Technological Environmental Legal

Internet has become a Waste management Regulations for standard
powerful selling channel M&S has developed a packaging, eco-friendly
Mobile phone shopping is program called Plan A in material and processes
just taking of this regard of manufacturing
 SEQUENCE OF
INTERNATIONALIZATION
1. Canada in 1973
2. European market in 1975
Internationalization was
started with Canada and
France
then with European
Belgium
countries
Spain
People living in these
Germany countries were having
3. USA in 1988 high incomes
4. Far East Good infrastructure
Japan Use of English language
Hong-Kong
M&S BUSINESS MODEL IN
CANADA
M&S entered in Canada through acquisition of
Canadian peoples Department stores (budget retailer),
DiAllairds (older womens store)
Walkers store (modeled after British M&S format)

M&S perceived cultural distance

The business formula was almost unchanged from the UK to Canada
In Canada, they customized the products according to the needs of the
people
M&S BUSINESS MODEL IN
USA
They entered through similar strategy they used in Canada, acquisition.
M&S bought Brook Brothers a department store, to market their clothes.
But they did not change the name of the US chain because of their loyal
customer base.
M&S invested in a new warehouse management system to increase service
efficiency.
M&S BUSINESS MODEL IN
FRANCE
M&S entered their in 1975 and they decided to adopt the store to French
life styles.
The French stores ofered snugger fit clothing, a wide selection of French
wines, and less British imports.
BCG MATRIX

OPPORTUNITIES
Internationalization Global Presence
Increase in online shopping
Growth areas home/food/beauty
Desire for labels/ branded goods
Consumers more prepared to purchase
a wider variety of products from one
source
THREATS
Increased Competition in all MARKS &
SPENCER business areas
Prior inability to adapt to changing
customer needs
STRENGTHS
High recognition of brand
WEAKNESS
Large number of outlets and high
street presence
Popular designer labels
Ageing customer base
Niche market success for food
Bad publicity as it is being
Wide variety of products
considered as old-fashioned store.
Geographically based divisions
Manual working increasing the
Backward integration Integration with
costs.
the suppliers
Adequate information processing
SO Strategies
Increase in specialist stores/outlets
WO Strategies
using the recognition of the MARKS &
SPENCER brand
Use of designer labels both internal
Use recent popular MARKS &
and external to attract younger
SPENCER labels to develop sub-
audience
brands under MARKS & SPENCER
brand umbrella.
Working more on e-commerce in
Possibility of use of celebrity
order to curtail costs and increase
endorsement.
online shopping.
Increasing global presence to capture
large target market world wide.
ST Strategies
Increase diversity of product range in WT Strategies
order to stand out in the cut-throat Refurbish Children's wear in
competition. reaction to increased competition
Using the information system to be It will generate long term profits in
pro-active in adapting to the this growth market
customers need.
HOST COUNTRY FACTORS
M&S valued the factors of
France as they adopt the store
to French life styles.
The French stores ofered They dont valued the factors
snugger fit clothing, a wide of Canada because
selection of French wines, and M&S thought that the economy
less British imports. and infrastructure of Canada is
somewhat like UK
They quickly found out that
M&S valued the factors of US even Canada also rewuired
Even after buying Brooks some modifications
Brothers they did not change
the name of the US chain,
probably because of their loyal
customer base.
Competitive Positioning
Market
Leader Market
Hig Challenger
h
Products

Market
Low

Niche Player
Follower

Early Lat
e
Market Entry
 M&S RESPONSE TO CRISIS
1. Job cuts
Cut 15% of its 1900 managers jobs
Senior management numbers were cut by 25%
The board has been reduced from 22 to 7

2. Price cuts
Clothing lines are discounted by as much as 15%
The prices of a third of all merchandise have been cut by 2%-3%

3. Reorganization
M&S was reorganized into three profit centers: UK retailing, Overseas retailing and Financial services

4. New marketing department was set up to help create improved Competitive analysis,
Information gathering, Proactive communication, Advertising clarity and Customer
targeting
5. The company will attempt to develop a more balanced sourcing policy to its domestic
and international outlets and will review global logistics to streamline distribution and
lower costs.
POSSIBLE FUTURE
STRATEGY FOR M&S
M&S should acquire top management personnel from the host country.
In this way M&S will have better knowledge about that countries scenario.

M&S should increase advertisements

It will help them to be recognized by the people of a country.

Decentralization of authority to the employees.

M&S should buy their clothes from the domestic manufacturer
Now the cost of the product will lower down.
New innovations and ideas took place.
THANK
YOU !!!