M&S; Success, failure, success

Towards the end of the 1990s, the well known brand Marks and Spencer suffered; profits fell dramatically and share prices plummeted. Consumers viewed their clothing unfashionable and their food range suffered as the public shopped with other brands and major UK supermarket chains for quality food. In May 2000, a new Chairman was appointed to help M&S regain its, once loyal, customers. Change wasn’t achieved as quickly as he’d hoped and in 2001, many of its overseas stores were closed. Given another 12 months to bring M&S back to life, it was announced in May 2002 that the company had experience a soar in profits and share prices; on the way to recovery.

Many suggest that M&S suffered due to the inability to manage change, keeping updated and satisfying customers’ needs and expectations in the changing marketing environment resulting in a “scatter-gun approach to innovation and change” by the public limited company (Bilton, C. 2007:122). Consumers preferred to shop at other High Street brands and “M&S responded to the decline in its existing business by attempting to innovate its way out of trouble” (Bilton, C. 2007:123). This was achieved by the introduction of new franchises such as Per Una as well as the creation of new products and services (such as financial solutions). However, such radical changes clashed with existing customers and the company’s established identity.

M&S has clearly learnt, albeit the hard way, and is now retaining its loyal customers and increase their engagement. Continuous marketing campaigns including celebrities such as Mylene Class help to reinforce the brand image and keep its customers shopping with them.

This has clearly demonstrated how such a successful company can lose its way when focus is taken away from its customers and not engaging fully with the market leading to a lack of understanding of needs and wants. In today’s economy, many businesses are finding it hard to uphold their innovative ways as budgets are squeezed and priorities lie with basic survival against rivals. However, innovation is still important and can significantly affect customers’ perceptions of the company and its products if competitors are always seen to be one step ahead of the game.

Innovations can make or break a business. In the case of M&S, innovations such as the introduction of the Per Una range conflicted with its established identity, however, it could be argued that this was a necessary and crucial radical innovation to make. The public are usually very cautious of radical changes such as these, but they can be convinced and persuaded, in due course, that radical innovations aren’t always negative. In such a fragile state, many may say that M&S needed to rebrand itself in order to catch people’s attention and attract its existing and potential customers back to the store.

Marks and Spencer are well known for their concentration on delivering quality to the best possible standard and either meeting or even exceeding customer expectations at an affordable price. The public limited company are continuing to improve their ranges of food and clothing my upholding its image of high quality to establish and retain its market position as a high quality, but innovative, retailer.

References

Bilton, C. (2007) Management and Creativity; From Creative Industries To Creative Management, Oxford: Blackwell Publishing Ltd.