Wednesday, December 4, 2019
Individual Analysis of Marks Spencers Operations. free essay sample
Note that all companies including MS can only apply any or all of the three generic strategies,that is, cost leadership, differentiation, and focus(Nonaka et al, 1997). Considering one of MSÃ¢â¬â¢s core products (clothing), it implements a focus strategy, concentrating on a narrow segment (a particular buyer group (executives), market segment (high-end), product feature (uniqueness) and further differentiate the segments as perfect and classic, autograph and per una. Kotler et al defined market segmentation as ways of dividing a market into distinct groups of buyers on the basis of needs, characteristics or behaviour who might require separate products or marketing mixes. It is a step that leads to successful business positioning as it helps the operation procedure of the company. Types of market segmentation are: Demographic Psychographic Geographic Behavioural Market segmentation allows MS to treat similar customers in similar ways, whilst distinguishing between otherwise customer groups. We will write a custom essay sample on Individual Analysis of Marks Spencers Operations. or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page MS uses demographic and psychographic segmentations to select its target markets for its products (focus strategy). MS targets its customers by age, income, social class, and occupation. MS targets the 30 plus age group with high income and executive occupation. MS also bases its market segmentation through value. Many products in MSÃ¢â¬â¢s clothing range have premium-priced, high quality segment , a mid-priced segment and a low-price segment. In such a market, fashion and quality differences can outweigh price variations. MS segmentation was geared towards creation of a Niche, claiming huge market shares as market leader and pioneering by innovation. They provided three successful range of Womenswears in the Autumn and springs of 2001. The performances objectives of MS acquires quality, speed, dependability, flexibility, cost, uniqueness, and perfections in all their ranges. The operations management understood the order winners and qualifiers as they listened to customersÃ¢â¬â¢ comments. MS ClothingsÃ¢â¬â¢ Ranges and Their Market Segments. Per una per unaÃ is a range of female clothing sold at MS stores, launched Ã as a joint venture between MS and George Davies. The brand name meansÃ for oneÃ (woman) in Italian. It has been a major success for the company,Ã and in October 2004, Marks Spencer bought the brand in a ? 125 million, two-year service contract with George Davies. This range is a demographic and psychographic segmentations, focusing on ; -gender (female) -age (25-35years) personalty (fashion-conscious) -Income (high earner) Logo of per una Demographic segement of per una serves women of 25-35ages, who attach much interest to fashion. This also complimented the psychographic segments as women who earn high to create personalty. Autograph. Autograph range of clothings is synonymous to Ã¢â¬Å" hands of the real personsÃ¢â¬ , the use of original design from the known names of world reckoned designers within the Industry. MS employed these best hands to help present products for their Psychographic segmented customers. Although it was supplied to few shops, it however catered for social, lifestyle and personality variables in this segment. The social aspect of this segment was also pronounced during the lunching of Philip TreacyÃ¢â¬â¢s hat collection in March, 2001 for women and men of various lifestyle (achievers, strivers and strugglers). Perfect and Classic Collections This range of clothings from MS is providing flexibility of time and style to their customers. The demographic and psychographic segmentations of perfect and classics can be highlighted as: -gender (both sexes); -lifestyle (achiever,strivers or strugglers); -family life cycle; -personality (matured as in classic). In the demographic segment, MS focused on both male and female and any form of family cycle, that is, single or married. Maturity creates a perfect intrusion for the psychographic segment of this range of MS range. Order Winners and Qualifiers The order winners and qualifiers provide background for distinguishing between the different competitive factors that operations may choose to emphasize. The basis of the classification is that different competitive factors can play different roles in determining the competitive contribution of the operations function. Hill said order? winning competitive factors are held to be those on which better performance will result in more business, or an increased chance of gaining more business. Improving or increasing winners level often leads to more orders. Qualifying competitive factors or qualifiers are those for which performance has to be above a particular level in order for the product or service offered to be considered by the customer, otherwise do not appreciably affect the customers buying decision(Hayes et al, 2005). Hence there is less to appreciate in terms of profit if increased more than the qualifiers level. There is need to redirect competitve priorities and creating perfect strategic fit in order to attain order qualifiers from order winner. A useful way to examine a firms ability to be succesful in the market is to identify the order winners. An order winner is a criterion that customers use to differentiate the services or products of one firm from those of another. Order Winners and Qualifiers of Per una. Per una range will increase its customers when the operations management maintains and improves its exclusive designs and inclusion of large sizes within the range. Order Winners and Qualifiers of Autograph Cost of this range can attain lowest state to increase customer base numbers. Operation management hence needed to produce in larger volume to for good cost of productions and profits. Order Winners and Qualifiers of perfect and classic collections This range of collections increase in quality and introduction of other larger sizes stands a chance of providing the order winners. Diversification of the range may be a order qualifier. Performance Objectives The need for a well-defined set of objectives for specific task in any organization must rely wholly on operation management. (Flaherty, 1996). The competitive factors of several companies can be identified with their operation performance objectives. Marks and Spencer go a long way in adding uniqueness to clothings. This provide branding for the ranges of clothings as observed in the five basic performance objectives. Per una Performance Objectives In dealing with all customers of MS, the operations have adapted to provide far enough flexibility in the availability of the range to the satisfactions of the focussed segment. In providing the best of the erformance of this range, the operation management employed outsourcing companies and suppliers to provide awesome quality acceptable from Europe to Asia at the possible economies of scales. Autograph Performance Objectives Operaton management uses their basic quality coupled with uniqueness in this range of clothings. In the cost of production, the management moved to Portugal from UK to achieve lower economies of sclaes. The management noticed that dependability and flexibility are paramount, therefore, engaged several designers to have varieties in their best forms. MS suppy chain was re-designed to reduce the cumbersomeness and lengthy supplies of finished and un-finished materials. This provided customers with timely availabilities of this range in their scattered shops within designers boutique environment.