Past market failure and present development of Marks and Spencer in Essay

Past market failure and present development of Marks and Spencer in internationalization - Essay Example The promotional strategies in UK were not successful as the company was implementing strategies which were old fashioned and outdated. Instead, the company decided on using celebrity endorsement strategies using big celebrities such as Elizabeth Jagger, Twiggy, Danii Minogue, Laura Bailey etc, to target UK customers (Hackley, 2009). Looking at the present promotional strategies, the company thought that celebrity endorsement will be the best strategy for creating positive brand equity. Since most of the products of the retail chain are perceived to be of high quality and sourced in an ethical manner, the pricing strategy for grocery products has been placed above average (Alon, 2006). The target management strategy which M&S has been following is to be in line with luxury brands such as John Lewis, Bhs, Debenhams and Next. However, apparel pricing is lower than rest of the brands as the retail chain wants its products to be affordable (Kotabe and Helsen, 2001). Distribution strategie s are planned so that products are able to reach target customers through the most efficient channel. Most of the distribution channels are backed by wholesalers, retailers, online sales, forwarding and customs clearing agent, sales executives from the company etc (Zhao, Niu and Castillo, 2010). The objective is to increase the overall customer reach. Therefore location has been the key priority for M&S while establishing its base in any foreign country. In most of the foreign countries, M&S have chosen those geographical locations which are near to the major trading areas as well as attract local customers from the surroundings (Fernie, 1992). Most of the company stores are located... Even though Marks and Spencer has been able to retain its position as a pioneer in retail products, it is no surprise that the company needs new strategies, media channels and distribution plans in order to establish itself as the most preferred one-stop retail store. New formats of the model retail will have to be developed in order to revive its positioning in the international market. Marks and Spencer has always been known for its knowledge of exact customer demands. They have always been a customer friendly organisation. Thus the first step for the retail chain will be to retain this place. In order to do this the company will have to arrange a comprehensive data base of customers in the country where the company has established its base. This can be achieved through a number of sources such as national geo-demographics, panels specialising in industry details such as fashion and national lifestyle lists. The company can also use details from its active accounts which are more t han 4 million in number as of now. Once the company gets sufficient information from the database, the next target will be to attract these customers. In order to do this customer can be divided into specific target segments according to age, demographics, gender and lifestyle etc. For example, to target women the company can hire local product designers who will be responsible for designing popular and largely accepted clothing range. The company can also cross-merchandise various ranges and spread offers across various relevant channels. Point of sale displays and advertisements can also be created in order to attract this specific segment. Customer feedback is another strategy which can be very helpful in making effective marketing and management strategies