There was no catwalk presentation, there were no Instagram shots of front row celebrity patrons, and no models. Instead, there were just a half-dozen mannequins dressed in some pleasantly tasteful layered neutrals. The idea of a high street retailer taking on the language of big luxury houses such as Burberry or Tom Ford seemed a trifle daft at first.
Outstanding communications, including iconic advertising, were an important part of its strategy. In what have been troubled times for the UK high street, the retailer took what appeared to many in the media to be two foolhardy decisions. First, it was determined to maintain its price premium when competitors were slashing their prices to the bone to survive.
Secondly, it decided to continue to invest in brand-building advertising to justify that premium. This, in turn, boosted the share price. As the dark clouds of recession loomed, things got tough on the high street.
It was, without doubt, the worst recession in living memory. As a consequence, consumer confidence plummeted by an unprecedented forty percentage points.
Some of the biggest names in retail crashed out of business. Only four or five years ago, for example, it would have been hard to imagine the high street without Woolworths. Perhaps unsurprisingly, more or less the whole of the industry went into a discounting frenzy.
But every cloud has a silver lining: But everyone else was hurting. This was despite the fact that keeping a steady nerve when all around were panicking was hard and, at times, painful.
The negative press coverage was creating a vicious circle. Investors who, acting on the strength of media reports, had been expecting a continued downward spiral, were taken by surprise. One of the strongest influencing factors driving this strong brand momentum was consistent advertising.
This enabled it to assert its stability and heritage in a time when big names were disappearing from the high street. The retailer was able to show how the brand had been there for people through the decades.
Stories included Fairtrade cotton, sustainable fishing suppliers and traceable meat Figures 18 and The quality message was also reinforced in promotional activity: Despite being a promotional mechanic, this actually raised quality perceptions and positioned the food as worth paying more for, not only among core customers but crucially among occasional food customers too, helping drive footfall and basket size.
But the longer-term achievements of consistent, long-term brand-building in both good times and bad are even more important. Econometric modelling has shown that the long-term payback of consistent brand investment are, on average, four times greater than the short-term profit boost generated by cutting it.
It took time for this strategy to begin to pay off, and it took nerve. The result was a gradual growth in share price over Marks & Spencer plc. is one of the most recognizable clothing retailers in the UK.
The company's stores also sell food and homeware and provide financial services. M&S has enjoyed a consistent record of success and profitability since its origins, with a worldwide reputation for its innovative, high quality products and competitive prices.
A number of histories have been written about Marks and Spencer [Rees, ; Sieff, ; Briggs, ; Sieff, that record the early development of the company.
Marks and Spencers has had a consistent record of success and profitability until recently when they were suddenly hit by falling sales. Marks and Spencers were totally unprepared for this and while they were developing new stores and expanding the bus /5(25).
Critical success factors: Marks and Spencer. Print Reference this.
Disclaimer: Another contributing factor to their success, was their proactive approach to human resources as in the UK, since many employees belongs to Marks and Spencer. expansion of market place, and provision of profitability by the customers would all work towards.
A team comprised of Marks & Spencer and Webtrends digital professionals established a new operating model that embraced a more agile strategy of continuous short-term testing with fully empowered business owners, rather than a .
How Marks & Spencer walked the fine line between success and failure all doom and gloom for Marks & Spencer. This cornerstone of .