Marks and Spencer (M&S) is one of the UKs leading retailers and is no stranger to international
Question:
Marks and Spencer (M&S) is one of the UK’s leading retailers and is no stranger to international marketing success. Founded in England in 1884 by Michael Marks and Thomas Spencer, the company has steadily grown to become a major power in the UK and in several other international markets. M&S sells products in international stores across Europe, the Middle East and Asia and it continues to grow its international presence through a multi-channel approach.
M&S is committed to delivering sustainable value for its customers and making every moment special through the high-quality, branded food, clothing, and home products, and financial services available in M&S stores and online. M&S products are available through more than 900 UK and more than 450 international stores—in diverse locations across high streets and out of town retail centers. International revenue totalled £1.2bn in 2016 constituting 10% of the total company revenue.
Internationally, the retailer operates through three different business models—
owned, franchise, and joint venture—to bring Clothing & Home collections and Food ranges to its international customers. M&S also has a growing international online business delivered through localized owned and franchise websites and through partnerships with leading marketplaces.25 The M&S website launched in February 2014 and acts as a window to its products and stores and an online store. As shopping habits change, the retailer combines the best of the web and store to extend its reach and drive more spend from customers. In addition to shopping online via the localized websites, international customers can order through the UK site as M&S delivers to countries including Hong Kong, Italy, Israel, Portugal, Albania, Brunei, Japan, and Finland.
Questions
1. M&S has been successful in several foreign markets but failed in others.
Analyze the possible causes of M&S international market failure and propose solutions.
2. If M&S chooses to return to some of the unsuccessful foreign locations, what factors should they consider before reentering them?
3. Is franchising the right market entry mode for this retailer?
4. How can M&S build brand awareness in international markets and drive traffic to its international and UK online stores?
Step by Step Answer:
International Marketing
ISBN: 9781506389219
2nd Edition
Authors: Daniel W. Baack, Barbara Czarnecka, Donald E. Baack