Chapter-1

Introduction to the brand

Year of establishment 1958

Ownership details

Robinnson group

Marc Bolland (CEO)

Robert Swannell (Chairman)

Sir Michael Marks (Founder)

Thomas Spencer (Founder)

HeadquarterBritish retailer headquartered in the City of

Westminster, London

Unique Selling Proposition Offering high quality products to the customers.

Global presence(countries/no of stores)

1,064 stores in more than 40 countries

Indian partner detailsMarks and Spencer Reliance India Pvt Ltd is a joint venture between Marks and Spencer plc (UK) and Reliance Retail.

No of stores in the country26 stores in India located in- Amritsar, Bangalore, Chennai, Delhi, Gurgaon, Noida, Hyderabad, Kolkata, Mumbai and Pune.

No of stores in the Delhi/NCR region

8 stores in Delhi region1 Stores in Noida2 Stores in Gurgaon

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Chapter-2

Retail Format Analysis

Marks & Spencer lies in department store as well as Chain store format.

A department store is a retail establishment with a building open to the public which offers a wide range of consumer goods such as clothing, housewares, furniture and appliances. It typically offers a choice of multiple merchandise lines, at variable price points, in different product categories(Also known as "departments" hence the name). Department stores usually sell products including clothing, furniture, home appliances, toys, cosmetics, gardening, toiletries, sporting goods, paint and hardware and additionally select other lines of products such as food, books, jewelry, electronics, stationery, photographic equipment and baby and pet needs. It provides customers, maximum shopping convenience and therefore, also called as 'Universal Providers' or 'One spot shopping'.

Characteristics / Features of Departmental Store ↓

Following are the main features or characteristics of a Departmental Store :-

1. Departmental Store offers a wide variety of goodsA departmental store not only offers a wide variety of goods and but also provides a huge range of designs, colours and styles that suit individual demands of consumers.

2. Departmental Store means shopping under one roofThe main idea behind a departmental store is to supply all basic requirements under one roof. It acts as a supplier of a large variety of quality goods and services. Thus, departmental store provides maximum shopping convenience to its customers.

3. Departmental Store offers quality goods and servicesThe motto of every departmental store is to provide high quality goods and render professional services to their customers. It always keeps a huge stock of fresh goods which highlight latest fashions and trends followed by different manufacturers.

4. Departmental Store has a single managementVarious sections of the departmental store operate independently. However, they all are under direct control of a single management. Buying, supervision, accounting, advertising and external communications are handled directly by the central management of a departmental store.

5. Departmental Store always attracts customers

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Departmental stores have attractive interior decoration and window display. They spend heavily on sales promotion. This is done through the advertising, discounts, special seasonal offers, gift schemes, festival offer, etc.

6. Departmental Store fulfill needs of most familiesDepartmental store mainly satisfies needs of the rich and higher middle class group of the society. More attention is given to quality, choice, convenience and service rendered to the customer.

7. Departmental Store renders good customer serviceDepartmental stores offer efficient customer services such as inspection of goods, actual demonstration of goods, convenient packages, provision for refreshment, reading rooms, home delivery, parking facility, etc.

8. Departmental Store has a high operational costDepartmental stores have to incur high expenses by way of rent, advertising, provisions of conveniences and facilities to its customers. Thus, costs of operation are high.

9. Departmental Store diffuses the risk of loss

The losses made by one department of a departmental store can be compensated by profits earned by other departments.

Thus, the risk of loss is diffused and hence reduced.

Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices.  It must have more than 10 units under the same brand and have a central headquarters, otherwise it offers franchise contracts or is publicly traded.

In retail, dining and many service categories, chain businesses have come to dominate the market in many parts of the world. Chain stores are a form of franchising.

The world's largest retail chain, Wal-Mart, became the world's largest corporation based on gross sales.

Marks & Spencer has all these features of department stores which are mentioned above as they have various departments for each product category. They offer wide variety of goods under one roof so it can be considered as a department store. On the other hand, Marks & Spencer is a brand and share a central management and have standardized business methods and practices. They have many stores under the same brand name and have a central headquarter so they can even be considered as a Chain Store.

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Chapter-3

Marketing Mix

3.1 Product categories

M&S Products

Women’s wear Kids wear Mens wear

Formals Casuals Formals Casuals

Shirts Trousers Skirts Shirts Trousers Suits Ties

Shorts Jeggings Tops Jeans Polo T-shirts Shorts

Quarter Sleeves half sleeves Tunics Kurtis

Note- There was no kids section available in the store which I visited in the westgate mall, Rajouri Garden.

3.2 Prices

They are premium brand offering medium price range to its target customers. Supporting its ambitious positioning, Marks & Spencer orders a premium pricing strategy. The prices at which the customers are expected to pay a best price for the products which fulfil their expectation of quality and modernization. From the very first day of inauguration when Marks & Spencer started its business, they had followed a value price strategy." Since Marks & Spencer has concentrated on middle class customers, they have continued value pricing strategy. In the beginning, most of their supplier have been from Britain, but know they also have suppliers form the under developing countries. Through its economies of scale in buying, Marks & Spencer has been able to require manufacturers to stay to strict quality standards and to bargain lower prices for its customers.

M&S Products

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Women’s wear Kids wear Mens wear

Formals Casuals Formals Casuals

Shirts Trousers Skirts Shirts Trousers Suits Ties

Rs.1995 Rs.2050 Rs.1500 Rs.1999 Rs.1899 Rs.5999 Rs.499

Shorts Jeggings Tops Jeans Polo T-shirts T-shirts Shorts

Rs.1299 Rs. 1995 Rs. 1499 Rs.899 Rs. 1295 Rs.1499

Quarter Sleeves Half Sleeves Tunics Kurtis

Rs.1499 Rs. 1499 Rs.1999 Rs. 1195

3.3 PlaceThe store which has been visited for this project is Marks & Spencer of Rajouri Garden,Delhi.

There are 26 stores in India which are located in - Amritsar, Banglore, Chennai, Delhi, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida, Pune.

There are 11 stores which are located in Delhi/Ncr region: Rohini, Saket, Vasan kunj, Moments Mall, Connaught Place, South Extention, Indira Gandhi Airport, Rajouri Garden, Ambience Mall- Gurgaon, DLF Gallaria- Gurgaon, Great India Place- Noida.

Place represents the location where a product can be purchased. M&S tries to locate its stores on the Main streets of major cities particularly in Malls, claiming that it seeks to build critical mass around capital cities or across important conurbation.

3.4 Promotion

Marks and Spencer promotes within the store through offering various discount coupons, like there was a scheme going on in the store like 20% off for formal bottoms, Rs.100 or less on all sale merchandise after final clearance, 2 for rs.999 on polo t-shirts etc.

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They even promote through interior displays, window displays which was promotional in their case as they used props for their window display. They also promote through point of purchase by placing beauty products, Sun Shades and toiletries at the cashier desk.

The sources through which they promote outside the store in order to attract the customers is: Promotion

Advertising Direct Selling Public Relation Sales Promotion - Catalogue - Articles - Offer discounts

Outdoor Mobile Print - Online Selling - Blogs - Voucher Codes Media Media - Free delivery Codes- Bill Magazines Newspapers

Boards -Your M&S - TOI - Virgin - Hindustan Times - Health & Beauty - Zoom Zoom

3.5 People/Personnel People are the most important element of any service or experience. This can develop by giving training, personal selling and customer services. M&S is a good employer, committed to making all their people feel valued and providing them with career opportunities and quality training. They introduced new career paths for store section managers and for the marketing team. They have people in the stores who act as coaches to train and support their less experienced staffs.

Coming to store which has been visited, it was observed that customers were happy and very free to move in the stores. There was no sale person on the head of the customer like some of them irritate the customer a lot. The staff was highly qualified but less in number. They were sophisticatedly dressed up in their formal uniforms. They were around the customers only so that they can help them out if they need. They were easy to find as they were in the reach of customers.

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Also the cashier was highly qualified and a very interactive person. He was advising his customers for various products by which customers felt satisfied. He was able to convince them.

3.6 Process/Presentation- Commenting on the visual merchandising of the store, the following information has been gathered:

Store Front

Marquee

Very simply written with Dark green background and text written with bold light green in order to highlight the brand name.

Entrance

Push-Pull for full service

Window Display

Promotional as they only place mannequins

Store Layout

Selling Space 55,000 square feet

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Merchandising Space 40,000 square feet

Trial room space 4 trial rooms each of 30 sq. feet

Store Interiors

Color Cream tiles and White walls

Lighting

White CFL’s only

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Sensory Outputs Slow Hollywood songs

Fixtures

T-stands, Shelves used

Interior DisplaysOpen display located in each department from entrance, point of purchase near cashier, uses

functional Props

Chapter-4

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