Marketing Strategies / Strategic Marketing Case Study

Marks & Spencer: Revival Strategies

OR

Abstract:

In 2007, Marks & Spencer (M&S), one of the largest retailers in UK was undergoing a revival. It was established in 1894 and remained as the topnotch retailer in UK till 1990s. Starting from late 1990s it faced a period of decline and in 1999 the pre-tax profits of M&S reached £655.7million as compared to £1114.8million in 1998. Not keeping itself abreast with changing consumer preferences and fashion trends were considered the main reasons for the decline of M&S.

Starting from 1999, M&S initiated on its recovery plan and restructured itself which yielded some benefits in 2000. In 2004, there was a change in top management at M&S and the new CEO Stuart Rose took up the task of M&S recovery.

The case discusses the revival strategies of M&S which mainly focused on keeping in line with customer requirements and changing fashion trends. As a part of the recovery plan, M&S launched a new and effective marketing communication strategy. The recovery plan showed gradual progress and M&S return to profit was considered to be an advertisement led recovery. The case aims to initiate a debate whether the revival strategies of M&S will continue to pay-off and help in regaining its supremacy.

Pedagogical Objectives:

• To understand the dynamics of UK retail industry
• To understand the corporate restructuring
• To understand revival strategies and M&S
• To understand various promotional strategies and its importance in retail industry.

Keywords : Marks & Spencer, UK, Challenges in retail industry, revival strategy, downfall, decline stage, Marketing Strategies Case Study, restructuring, leadership, advertising led recovery, promotional campaigns, advertising, marketing communication strategy, market trends, competition, new entrants, clothing, food, International, home, Stuart Rose, new product introduction