Analysis of Grades and Spencers Marketing Combine Executive Summary

Marks & Spencer is one of the very most renowned and oldest retailers of Britain. It had been within 1894 through the partnership of Michael Markings and Thomas Spencer. The first store was exposed in Manchester and the business was based on primary values emphasizing on high quality, affordability, service, invention, and trust.

Due to these corollaries, the organization experienced a great success which resulted in countrywide and global expansions. Today, it is one of the greatest clothing suppliers with 895 stores in more than 40 countries surrounding the world. It's also outlined on the London stock market and FTSE 100 index.

The company's current main products include clothing range, home ware and foods with a supply chain greater than 2000 suppliers globally.

Nevertheless, the company started facing problems because of the various reasons such as outdated fashion products which were not on par with the style trends. This was primarily due to the fact it lost give attention to their central business by bringing out an array of products which were not compatible with their main competencies. This led competitors to steal the market share.

In order to take on these issues M&S made a decision to transfer to the Chinese language market where they saw better and wider opportunities.

Why Chinese market?

China is the world's third major economy (behind the united states and Japan in US$ terms) and the country has the greatest population of just one 1. 3 billion (in 2008) making it one of the quickest growing economies.

When the recession struck the world's overall economy and the best retail marketplaces like US and European countries the companies were looking for opportunities to broaden and diversify the risk. China was one of the markets which were not affected by the monetary downturn. In '09 2009 its retail sales struck 12. 5 trillion ($1. 8 trillion), an increase of 15. 5% from the previous year. This was due to the continuous go up in the same yr of the per capita disposable income which amounted to 17, 175 ($2, 515). http://chinabusinessreview. net/public/1005/lu. html

In 2008, M&S opened up its flagship store in Nanjing Road, Shanghai. However, the results of this endeavor had not been as successful needlessly to say due to many problems ranging from product incompatibilities to superstitious values.

The first section of the paper highlights the current financial performance of the business. This is followed by an exploration of the difficult marketing mix that added to the inability of the organization in China. And, recommendations will be provided for M&S to use as a change strategy.


Financial shows:

The financial and trading performance is the way of measuring of the results of an firm's guidelines and businesses in monetary conditions. These results are mirrored in the firm's profits on return, debt to collateral ratio and a great many other ratios (Dictionary, 2010). A ratio is one value divided by another. The effect is representative of the worthiness of one amount in term of another (Ross, Westerfield, & Jordan, 2006). During this section the light will be placed on the financial aspect of Grades and Spencer's business to evaluate whether its finances is adequate or when there is any loopholes that the business might have to consider in the foreseeable future. For a subject of better understanding, the financial key performance indications will be in comparison to TESCO's ratios.


From these information, it could be seen that Grades and Spencer has be gradually increasing its net income. However, even if they increased, its net gain and cash flow per share reduced. This can be explained by the ventures that have been carried out by the business to understand its internationalization strategy. Not all of these ventures have prevailed as some did not be successful like in France for example where in fact the company made a decision to close all its stores and exit the market. Indeed, they left behind their possibility to extend in France however the cost to are present was relatively expensive mainly as a result of labor force safeguard by the French Federal government (Global Oneness, 2010).

Revenue by region:

Stock performance:


In short term solvency, it can be said that the company is controlling normally its activities within an inefficient way. Indeed, if it was to pay its short term debt immediately, the business would just be in a position to cover around 80% of these. If Tesco is taken as an example, its current percentage is 345% (Yahoo Money, 2010) which means that Tesco is better financially than Marks and Spencer. Thus, buyers would be prepared to get more in Tesco. This example also multiply bad image for the business in its financial group which can have the result of lowering the investing electric power of the company.

Regarding the permanent situation, the amount of Asset-to-equity and Debt-to-equity ratios show that the business have a sizable part of its resources financed by Arrears. Consequently, it illustrates a high level of financial leverage, around 64%; which is reinforced more by your debt ratio.

Problematic areas of Business:


Marketing blend - Porduct:


It is vital in fashion industry to get the merchandise right. Before decade, M&S possessed downturns of business and brand image related to its garments getting 'old fashioned'. Although analysts say they have recovered, they appear repeating product flaws in Chinese market as well. Experts in fashion, have discovered key issues that may lead a fashion product to fail. Relating to Jackson and Shaw (2009), here will be the common explanations why fashion products are unsuccessful

poor or outdated design;

poor sizing or fit;

unfashionable or irrelevant styles/designs/colours;

poor setting or in-store display;

poor value or uncompetitive price;

poor or non-existent consumer knowing of the product and/or it's availableness;

hyper strong competitive offers in other places.

Researches and analyses on the M&S enlargement to Chinese market indicate that all above items were relevant to their products.

4. 1. 2 Sizing

Each clothing retail brand has its basic pattern stop that probably has been made after learning target groups measurements and taking the common from that.

Marks & Spencer's typical attire customer is a woman after 40s who prefers comfortable fit and quality. It has influenced M&S fashion and sizing as well. Customers complain M&S clothes and underwear are much larger compared to the same sized item from another shops.

In mass development of several thousands of pieces of clothing, shrinking the way of measuring in to unnoticeable 1 cm may make noticeable decrease in cost. Therefore fashion is created corresponding to feasibility, cost efficiency of the designs which is influencing just how clothes fit and the sizing as well. The reason why M&S clothes appear greater in comparison to cheaper rivals is really can be explained by the school of thought of not reducing on quality.

Average size in Chinese language garments industry is smaller than Western size atlanta divorce attorneys dimensions. It really is shorter; sleeves are 2 inches shorter, sizes up to 16-18. In European countries it is up to 26. When a fashion retailer gets into a fresh market, it's important to research consumers' sizes, body structure, and culture. Because these things effect people's fashion likes and clothing culture.

Style and Fashion:

In the Chinese language market, M&S offering large size clothes that thrilled expatriates who struggle to find their size in outlets, which concentrate on average Chinese women. However, Chinese customers showed very low interest, as the clothes are 'too big and too simple'.

M&S is a office store that will try to meet up with the needs of most age groups with different needs. Where as competitors attempt to focus on one section and one fashion strategy and therefore perform effectively. The brands inability of attracting young Chinese people's attention could be scheduled the failing of 'Everything for all' setting generally. Fast fashion requires the merchant to concentrate on certain, preferable well-specified segment (like Zaras, sophisticated stylish over 20's). Could be it is time for M&S to give in-house brands self-reliance and expose quantity of different brands, keeping M&S simply a store name.

Diversified products bring about bigger and slower source chain. Because opponents are adopting effective and quick product turnover, smaller and faster batches, M&S clothes, when showed up to stores cannot stand your competition. Costumers find them out of fashion.

Brand value is a key for success in fashion industry. Fast moving, better-positioned and good deal competition are jeopardizing brand value of once famous clothing shop with heritage. Celebrating it's 125 birthday, M&S resembles more aged technology fashion and waiting for you brands and young celebrities used as brand ambassadors not assisting to attract 20-25 calendar year olds although they are assisting to sustain more customers who'd switch to competitors in any other case.

According to analyze by Datamonitor, more than 75% of customers in the meals halls of M&S, are over 45. In the fashion department the situation is worse: 65% of its main clothing buyers were aged over 55, as were those who accounted for 48% of shelling out for M&S clothing this past year. (http://www. guardian. co. uk/business/2009/nov/22/bolland-marks-spencer-problems )



Limited range and Extended life foods:

Marks and Spencer has been criticized by its Chinese language customers that the food products in shelves were produced in the past from the time of purchase. So there is only a small part of fresh products as well as the range and variety is bound. Most products are getting close towards expiry time frame. The food items contain preservatives that impact flavor of products.

Further research shows that a sizable amount of products were destroyed due to expiry, spoilage and bad conditions.

Almost all products are created in UK so this contributes to customer's understanding of Markings & Spencer as a English store.

Research shows that the main reason for previously listed problems is the fact that Markings and Spencer imports its products from UK. It takes a significant time in shipment of goods from UK to China due to enlarged source chain cycle involved. A portion of products is deteriorated scheduled to inefficiencies in handling, storing and transport procedures.

Branding issue

Marks and Spencer brands all its products under its trade name M&S. this brand appear bizarre to Chinese language people and they have translated it into a Chinese language term. Also this brand has no immediate linkage with products.

This is due to company coverage towards branding and trends in UK market as a lot of vendors such as Tesco brands their products under their trade name.

4. 2. 3 Packaging issue:

Marks & Spencer customers are finding product packs complicated and misleading. Research reveals a customer complains that he bought a packet presuming it to be biscuits but when he exposed it were snacks.

The above problem is a result of standardized strategy towards presentation and labeling. The labeling lacks Chinese language description and also abundant with word and without product images.


Marketing Mixture - Price:

When setting the price of a product, the company must understand flawlessly its cost and the customer value belief for the product (Armstrong, Harker, Kotler, & Brennan, 2009).

Marks and Spencer did surely understand these points when functioning in UK and in other successful countries but not when it arrived to China as the company failed to establish the price appropriately. Normally, the price the company charges will land somewhere between the one that is too much to create any demand and one that is too low to generate any revenue (Armstrong, Harker, Kotler, & Brennan, 2009). These are the extremes and Grades and Spencer leaned much too much to the high price end. As a result, the business found it very difficult to market its product and generate profit for a viable business in China.

One example is the cashmere scarves that Markings and Spencer was reselling or pretending to market, as no person bought them, at 50 where it was possible to get them for far less at close by stores (Moore, 2009).

However, in some cases the prices of products were convenient but the customers still did not buy them. The reason is primarily that Grades and Spencer performed come later. Indeed, Wal-Mart and Carrefour have there been before and acquired more than enough time for you to impose their individual brands and enjoy the lion's part (Crabbe, 2010).

Marketing Mix - Place:

When entering a fresh market, one of the key decision a company has to make is deciding on the best location to start in. indeed, the location is one of the main element factors to a small business success firstly scheduled to to be the least flexible of the proper retailing issues and second, because the location set the physical restrictions of the trading area from which the store pulls its customers (William & Ferrell, 2010). Because of this, in the following paragraph will discuss the issues related to the Marks and Spencer stores in China.

Marks and Spencer has exposed since 2008 two stores in China, one in Huaihai Road in Shanghai, the same as London's Oxford Neighborhood (City Concentrate, 2010). Along with the other one is in Yuyuan Garden, Shanghai major fascination and commercial hub (City in pulse, 2010). These stored, especially the first one, has experienced poor trading within the last months. This is due to many factors but the discussion is only going to give attention to location related issues.

The first concern concerning the location was the first store opened. Markings and Spencer acquired chosen one of the most popular streets in Shanghai since it wanted to show its brand reputation and enhanced stores. But at the same time, the company wanted to extend quickly and therefore the store had not been ready to welcome the new Chinese language customers. Indeed the walls were scuffed and the coloring job was poor (Moore, 2009). As the old adage confirm, the first impression is the previous impression and by failing to make a good one in the Grand opening of its first store, Marks and Spencer condemned itself of having a negative image in China.

The second concern was that the business underestimated the differences in operating in China and Hong Kong, therefore using the same strategy to find the store location in China. Indeed, Sir Stuart Rose accepted to the Financial Times during his stop by at the Shanghai store that Marks and Spencer does misunderstood the Chinese mainland market, let's assume that its experience in Hong Kong could be straight transferred to the forex market (Information, 2009).


Marketing Combine - Advertising:

Brand understanding:

One of the major problems with Marks and Spencer's (M&S) project into China is the fact that many residents were not aware of the brand. In fact, one of the articles regarding M&S in China talks about local men declaring "we've never heard of the corporation". Many female shoppers also claimed to be unfamiliar with the brand. Although it is a well-known British company numerous outlets abroad, it is fairly unknown between China's local open public. This means that there's a insufficient brand understanding and advertising as the local people do not have much knowledge of its history. Because of this, many customers would not be instantly drawn to it as they don't recognize it. Lack of familiarity discourages visitors to enter in the stores which will inherently affect sales.

Other issues:


Supply chain:

Global supply string management is an important area for M&S in its expansion to China. Global source chain management includes the company's worldwide pursuits. In China's expansion it is noticeable that the resource chain related issues derive from the next areas.


Proper timing in getting close to a market gives advantages for a business. For instance first movers in market will have advantages in increasing profits.

China's retail industry has grown rapidly during the recent background. The move of M&S to China was taken during the downturn.

Even though China was less affected by recession because of its closed economic climate, the worldwide demand for Chinese exports were lowering. It was a period when cash strapped consumers were leaving expensive ready cooked properly meals and thinking about purchasing the cheaper substitutes rather than the expensive.

Luxury ready prepared meal this is the mainstay of Grades and Spencer's offering.

Marks and Spencer don't have enough versatility to move their offerings during Moving to China. The result is lack of customers to competitors and it will become difficult to recover them when economical times get better.

Institutional Factors

Product controls, authorities regulations, tariffs impacts supply chains.

When M&S at first started the business enterprise in China the company had plenty of difficulties in getting products into the country. Chinese custom officials blocked M&S goods. This example created empty cabinets in the food team of the store. (http://www. jddchina. com, 2010)

Corruption and federal government bureaucracy remain a significant concern in China. Business activities and financial related activities may take far more time than comparing with UK and the administration costs continue to be extremely high.

The higher amount of control throughout the market by the government creates policy uncertainty. This uncertainty exists as a major obstacle for businesses operating in China.


According to the knowledge of successful international businesses in China such as Sara, H&M and Tesco, it's important to have a long view in China. Existing products shouldn't be transplanted into Chinese market segments without making them localized.

In the localization process it is necessary to truly have a proper integration with the local skills that can create better customer links.


Superstitious beliefs:

Although China is one of the big and a great country in all the aspects of the world but still they have tons of superstitious beliefs. Grades and Spencer in china has experienced from these kinds of values.

China has a main impact of Feng Shui. Feng Shui is widely used to orient structures.

According to the retail competition of Marks & Spencer the primary store is at a cursed location of the city. This superstitious gossip was because just at the four days of beginning of the China's main M&S store there was a death of 1 of the man named Harshit Shah. He acquired killed accidently while leaning over the medial side of escalator (The Telegraph, 2010).

As M&S is China we can not neglect these exact things that could have been one of the reason why of the failure for Marks & Spencer in China.

Most of the Chinese people have some common values about the figures. They consider no. 4 is associated with the death so almost all of the times they don't really even buy products that price starting or concluding by #4 4. They consider no. 8 8 for prosperity and all the best. They also skip the 4th floor in lots of the buildings. Different styles & forms of the Feng Shui are often used to block or decrease the negative energies that occur.

According to some believers of the Feng Shui the framework of the Marks & Spencer's store was wrong and that led think of superstitions among the problems for M&S in China.



Marketing Combination - Product:


Researches show Chinese language consumers are not familiar with M&S brand. Thus giving a chance of positioning the brand in a different way than it is put in home country.

The structure of store image, comprising both tangible and intangible measurements, materials problems of moving into international marketplaces - as consumers in the coordinator environment are less acquainted with the intangible dimensions of image, which have been built up over time with exposure to the retail company. Retail companies therefore need to fully understand the importance of image in competitive placement and the components of store image before trying to reproduce this image and placing overseas.

Repositioning the brand can give an opportunity to reach the required customer, 25-35 time old Chinese consumer with higher disposable income. With current strategy M&S can't be as successful in china as in the UK. Because older technology in China do not have high throw-away income unlike their European peers. BCG researches indicated that Chinese consumer is very young.

Although fashion is becoming global already, it still needs localization when stepping into a new market. Jessica Lo, of the China GENERAL MARKET TRENDS Group warns that western brands shouldn't bank on Chinese consumers straight paralleling European and American purchasers as it pertains to flavour and aesthetic appetites. "Many european companies neglect to localise both their styles as well as advertising. They use stars and images that work in the united kingdom and European countries, but that don't resonate with Chinese language consumers. It is critical that companies have the right product selection and style and advertising image. " (http://www. nzherald. co. nz/lifestyle/news/article. cfm?c_id=6&objectid=10650170 )

Marks & Spencer can increase its Petite range products and take it to Chinese market with different, localized brand. When petite sizes are average, its easier to replace the name, because it may sound offensive rather than simply size attribute. It is recommended that M&S researches fashion preferences, consumer behavior of Chinese people and then create an in-house brand personalized for Chinese market. Similar brand should be created for menswear as well.



Limited range and extended life products:

Chinese people are extremely mindful about their food selection because they link it right to their good health and long life. So we recommend the following actions to be taken and executed.

Marks and Spencer should develop local production facilities so that products are produced and prepared in china than importing from UK. So as a result people will get fresh products at best tastes. This will likely also change its image from a English retailer to a local manufacturer.

Develop methods and improve conditions therefore the preservatives aren't added in the products. This is achieved by bettering packaging, safe-keeping conditions and effective supply string and product replacement cycle.

Re-engineer the import process therefore the inefficiencies in handling, product packaging, storing and transportation are removed to ensure minimum amount wastage.

The freshness and pureness (no chemical preservatives) features will be used for advertising of products as it is an effective practice now days used by visible food manufacturers. The company executives can perceive local creation as a costly operation in comparison with demand but it'll increase demand in long term by bettering product image. We are able to also export our made in china products to other close to locations like India and other marketplaces. It will also lower the price and will drive prices in a competitive range.


The presentation is a center area of concern as it operates in a multiple way by communicating product information and brand persona. It's the first point of contact of product with customer so that it should be attractive in terms of design and color. The Chinese website link longness to long life so program should be designed in long forms and the color are also important. Because they will be attracted towards red packages which is a symbol of prosperity and steer clear of using black shade as it is for bad luck. ( http://chinasearch. co. uk/buy/marks-and-spencer/)

Package should be functional and clear so that it shows the real picture and dynamics of product. It ought to be convenient for Chinese people to open as they avoid cutting things with scissors and knives.

Package should be well labeled about product, brand and all relevant information. Grades and spencer should label products by using a bilingual methodology. Using both Oriental and English so that it will be helpful for customers to read all information they want. The label can be made more attractive and functional by adding Chinese meals.


Marketing Combine - Price:

To make the prices of products more affordable and competitive, one solution would be that Grades and Spencer boosts its supply string to lessen cost

First, by exploiting the technology in its stores by presenting handheld communicators to trail clothes from the syndication to the sales floor which really helps to know precisely what is in the stores. The effect will be a more efficient and cost effective delivery system

Second, by producing a technology that includes counting the number of items sold by kind automatically when the exchange is taken care of; For clothes especially to really know what items are better sold and what are the ones that contain to be removed.

Another suggestion is always to carry out a consumer shopping experience research to really know what kind of design Chinese prefer, and what products should go together to be able to be rid of unwanted products and therefore reducing the price of unsold goods

The last but not least is to make space between clothes and food so that the stores looks more attractive thus minimizing the matter about price.

Marketing Combination - Place:

As it was said at the start, the positioning is the less flexible asset. Subsequently the suggested solution will concentrate more on forthcoming stores. The perfect location for these future stores would be places that individuals can access more easily, also MS should think about starting to start small stores to get also the reduced volume buyers as this kind of prospects are prepared to become devoted clients but are not going to waste time in a supermarket just to buy few items. For future stores, Markings and Spencer should measure the relative efficiency if movement to and from the website, including factors such as pedestrian and vehicular traffic, auto parking and transportation (William & Ferrell, 2010). The business should also measure the characteristics if the website itself: types of stores in the area and the visibility of the great deal under consideration (William & Ferrell, 2010). One very last thing to do is to consider compatibility with neighboring stores basically because stores that complement one another sketch more customers for everyone (William & Ferrell, 2010).


Marketing Combine - Campaign:

Re-branding and Commercial Public Responsibility (CSR):

Due to the fact that the company has been battling with bad press and negative public views due to many reasons such as offering products that do not serve the needs of the market, lack of products, providing wrong sizes and superstitions because of the occurrence of an death through the opening week, M&S needs to re-brand itself to be able to move from the negative connotations, erase days gone by image and begin afresh. This is done by changing the store look and layout. It should have colours and products that exude vibrancy and freshness. The M&S logo design should be re-designed in order to bring a sense of novelty. The focal signboard beyond your store should grab attention and be vibrant. It could be designed with neon lamps and an alternative shade of renewable, together with black to make it look apparent. The window displays also needs to be creatively designed with mannequins decked out in vibrant colors and innovative designs. The set up should grab your hands on the passerbys interest, especially the female youth- which will be M&Ss new target market. Although this is an advertising technique, it primarily falls under re-branding the store and presenting the brand a fresh image. All these efforts should be focused towards recreating a store that does not remind the customers of the old store or their views of it- it will feel new to the customers and help develop positive impressions.

Another way of erasing bad thoughts and building a positive image in the imagination of the public is by engaging in CSR (commercial social responsibilities) activities. M&S should consider taking up a project that can be beneficial for Shanghai and its people. One such way is by participating in charitable causes that help raise funds to help you a few of Shanghais poor inhabitants. Such activities should have proper information coverage in order to disseminate the meaning amongst the people about M&Ss good, unselfish deed. This can help change the heads of at least some of the people and help develop an optimistic view of the brand.

Increasing brand consciousness:

Due to the fact that many individuals were unfamiliar with the brand, M&S should take part in heavy advertising. It could include various mediums, some ideas for M&S are the following

· Tv: This is actually the most successful way of attaining mass-market, especially in China where it's very popular. M&S should think about buying slot machine times during programs which have the highest viewership. For instance, the China Central Television set (CCTV) claims to get 600 million visitors for its daily evening media- which makes it the most watched media program in the globe. Adverts may also be shown during the working of popular programs like the Springtime Festival Gala (one of the best scored show in China), Fashion China (on Gungxi Television set, which ultimately shows the highlight from fashion shows round the world- also one of the top-rated shows) or during famous soap operas like Wo Ju. M&S should create eye-catching advertising with catchy music and cool images and also use famous local stars like Yao Ming, Zhang Ziyi and Jay Chou to determine a reference to the neighborhood people. Famous international superstars, like David Beckham or vocalist Rihanna, may also be used for Tv set ads to catch the attention of the expats, and these advertisements will still have the ability to obtain the attention of the Chinese people who also like and recognise them (superstar branding).

· Print out advertising: Papers are also Chinas most popular advertising medium. Documents like Jiefang Ribao (Liberation Daily) and Jingji Ribao (Financial Daily) have high readership rates- nevertheless, these are mainly read by the working class people. In order to reach out to the junior market, M&S can advertise in the favorite Chinese Youth Mag known as Zhongguo Qing Nian Bao.

Popular female periodicals like Elle China or Harpers Bazaar China can also feature M&S adverts and it'll help get in touch with middle-upper class women considering fashion.

Also, television-based brochures also have high circulation rates. M&S can feature its advertising in the Shanghai Regular Radio Broadcasting and TV known as Meizhou Guangbo Dianshi, that includes a blood flow of 2. 8 million in Shanghai.

· Internet marketing: This is the usage of the World Wide Web to be able to find the meaning across and build interest for your brand. In China, 1/3 of the population is found online, this helps it be the second largest internet community in the world. Internet is an excellent way of calling young people, and this is important to notice as they will be M&Ss target market for the clothing office. In China, Facebook is not as popular as websites called QQ and 360 Quan (Chinas largest communal networking sites). Whereby companies today are creating facebook pages to reach away to the youth market (e. g. - Burberry), M&S should try to join these sites to create consciousness, inform the young ones about the brand and its products and encourage them to buy them. This is also a good way to connect with the youngsters, get to know their views on the prevailing products, what the upcoming tendencies are and the colours that are in during a particular time- this way, M&S will be able to get an information into its marketplaces and the needs, thus creating products to meet them.

· Billboards: These can be used to attain out to mass audience. Billboards should be interesting and also be able to grab attention. They should be put in areas with high number of passers-by such as the city centre, pedestrian bridges and sidewalk railways.


Since customers find all the products expensive, M&S should expose several sales deals in order to encourage purchases. Listed below are a few of the ideas

· Buy-One-Get-One-Free (BOGOF)- small products like biscuits and chocolates can be used for this kind of promotion whereby the customer gets two products for the price tag on one.

· Reduced prices- the products that the customers find exceedingly expensive as per their lifestyle and country standards should especially be sold off at discounted rates. Huge discounts and sales should be organized especially through the big Chinese get-togethers like the Chinese language New Time- which occurs around Later part of the January and Mid-February. Also, this is a period when many people do not have money to make expensive purchases (especially anticipated to Christmas holidays and the brand new Yr), which would make it the ideal time to provide discounts.

· Loyal Reward Program- here, customers can be given M&S loyalty cards where they can accumulate points for each and every purchase they make, and later, these details can be redeemed for rewards such as a free surprise or an exclusive discount on products.

· Free samples- this is especially useful when M&S would like to introduce something which may be a English norm but not used to the Chinese market. Samples can get out for tasting in order to find out the general populations reaction and determine whether to just do it with stocking the merchandise or mot. It also induces purchase as customers will buy the product if they like the sample.

· Vouchers and coupons- these can be included as part of the print advertising (magazine/ publication), whereby coupons can be provided that offer discount rates and freebies, thus indirectly persuading the people to go to the stores.


Supply Chain

China has a historical linkage with all of those other world. As the current economic climate is wide open for investments increasingly more businesses are growing themselves to Chinese language market.

China is considered as a regional hub allowing you to connect the neighbor countries. In order for M&S to adopt advantage of a highly effective supply chain at a lower cost, the company should look into the opportunities of off shoring its development activities.

Due to the political and social reasons, it's important for M&S to be obvious throughout the whole supply chain while building close romantic relationships with local businesses and the federal government. The company needs to sort out problems at the Chinese customs to ensure future stocks not held back again much longer than necessary. It's important to implement small control over resource string to avoid stock-outs.

At the multinational level, the Chinese federal government is coordinating with European union to create fare market agreements through the entire world Trade Firm.

M&S needs to identify the main element growth regions of China to reach the best locations and the best properties. In the future, the business should focus on starting new stores in more populated area as old town is more 'island like' and it is 'not a retail vacation spot'.


Taking culture into account

M&S should restructure their store in Shanghai & use some proper styles of feng shui in the store to avoid any impact of some negative energy's.

M&S may use these beliefs of numbers among the major competitive benefits in marketing the M&S against the rival vendors in the competition by enhancing the costing by some good numbers ending other than 4.

M&S should focus on some Corporate Social Responsibility practises to beat this issue. For the CSR they need to work with some local community's development procedure. And in response M&S could work on the some individual learning resource recruitments among all the neighborhood communities regarding to requirements of the employees. This assists them to create some good public relations to be able to achieve long term goals.

M&S can help in volunteering in a few events or celebrations as a sponsor that will assist in advertising of M&S and in CSR as well with good public relations.


Chinese retail market is definitely promising and producing huge turnover for most founded brands already. As the consumer market is shifting to raising countries, it's important for Grades and Spencer never to lose its place in another of the key emerging markets.

According to researches and analysis, bottom line can be produced that M&S underestimated uniqueness of Chinese market by attempting to apply Hong Kong model rather than choosing proper market admittance strategy. There's a simple formulae: The more barriers gets the market, the greater localization should be considered. Barriers (dissimilarities) were extensive: language, culture, lifestyle, social-classes, education, religion and many more.

M&S China model, shows how important is the global marketing. Strong brand with heritage and high-end quality products is faltering on the market, which is overtaking the US by luxury goods utilization soon. The main element answer for the all above issues could have been understanding of market uniqueness and localization, which would be completely different market accessibility strategy than the main one M&S had been pursuing so far.

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