Marks and Spencer plc, a UK-based company, is primarily known as a retailer with over 622 stores in the UK selling clothing, food, and household goods. Its core retailing business focuses on women’s clothing. The three different product ranges cater to different market segments, with the assumption that the Perfect and Classic ranges serve the same segment. Marks and Spencer (M) is not only the largest clothing retailer in the United Kingdom but also the 43rd largest retailer globally, attracting over 21 million weekly store visitors.
British culture is often associated with iconic elements such as the Beatles and Fish & Chips. In the past, M was renowned for their high-quality and enduring clothing options. However, in today’s fashion-conscious society, M has struggled to keep up, especially in the women’s department. Modern women with a keen sense of fashion now prefer unique and rare designs that set them apart from others. They no longer desire clothing that is instantly recognizable as M. As a result, M has been losing market share, particularly among younger generations who view the brand as outdated and suitable only for older individuals.
The main target audience for the Classic and Perfect clothing is women of all ages who are either new or returning customers of M. These ranges primarily consist of simple and basic pieces, such as plain shirts, sweaters, t-shirts, and jeans, available in sizes UK8 – UK 24. The Classic and Perfect ranges cater to customers with busy lifestyles who seek quality clothing at reasonable prices. These garments are designed to be machine washable, tumble-dry friendly, and require minimal ironing. Additionally, the Classic and Perfect ranges are considered timeless essentials that can be worn throughout all four seasons.
The Autograph range is designed to offer women, mainly aged 35 and above, affordable top designer style. The range showcases elegant and timeless pieces made from luxurious fabrics like silk and cashmere. Each item in this collection is expertly tailored to suit women of all lifestyles. With sizes ranging from UK 8 to UK 22, there is a suitable piece for every woman. The Autograph range caters to women willing to invest in high-quality products that look sophisticated and have longevity.
The Autograph collection mainly consists of formal styles and a variety of colors. On September 28, 2001, M introduced a new clothing line called Per Una, which is Italian for “For One (Woman)”. Per Una caters to women aged 25-35, ranging from UK8 – UK 18 in size, as this demographic has significant buying power and a strong interest in fashion. The translation of Per Una as “For One” signifies M’s intention to provide this new target group with unique and detailed styles. Customers within this range seek stylish garments that offer value for their money, along with reasonable quality that meets basic standards such as colorfastness and resistance to shrinking after washing.
Per Una is aimed at fashionable and confident women who are not afraid to incorporate vibrant colors into their wardrobe. Unlike the Autograph or Classic range, Per Una offers a wider selection of colors. The order winners and qualifiers for these ranges refer to factors that directly and significantly contribute to winning business. These factors are perceived by customers as crucial reasons for purchasing the product or service. Enhancing performance in an order-winning factor will either lead to increased business or improve the likelihood of obtaining more business.
These criteria distinguish a product or service from the competition by offering superior features. In the case of M, the three clothing lines each have their own order winners that have kept them in business. The order winners for the Perfect and Classic ranges are the size availability. These two ranges are the only ones in M that offer clothing sizes up to UK. As a result, women in this size category choose to buy clothing from these ranges because most other brands in the market only offer sizes up to UK.
The M Autograph range is highly regarded for its superior quality and extensive product selection. This range is known for using only the finest and most reliable fabrics available. Customers who purchase from this range consistently express satisfaction with their purchases, believing that they are getting their money’s worth. Those specifically interested in cashmere clothing often turn to the Autograph range, as it is the only range that offers such items. For example, a single cashmere cardigan from this range can cost up to $59.
Lastly, the Per Una range stands out as it possesses unique product characteristics, making it a winner in terms of orders. As mentioned previously, the Per Una range is known for its vibrant and diverse collection, making it particularly attractive to the younger market. The range offers a variety of styles, including spaghetti strap dresses and bold colorful prints (see Appendix 6). In addition to order winners, order qualifier factors play a significant role in influencing customers’ purchasing decisions. While they may not be the main competitive determinants of success, they hold their own importance.
According to N Slack, S Chambers and R Johnston in their book “Operation Management” (p. 72), competitiveness in a business requires meeting a minimum level of performance in order to be considered by customers. Falling below this qualifying level may result in being disqualified by many customers. In the case of M stores, the availability of stocks may vary depending on the location and store. For instance, certain M stores do not carry the Autograph range, which is considered a high street brand. However, customers can find the Classic and Perfect ranges in any M store.
The Classic and Perfect range is the main line of M, making it an order qualifier for customers who can purchase it at any M store. The Autograph range, on the other hand, qualifies by its fast turnover in style and design. Customers expect to see new and fresh offerings each time they visit the store, posing a significant challenge for retailers. M has tackled this challenge by implementing a phased approach to introducing new stock. Every five to six weeks, 25% of their women’s wear will be refreshed. Additionally, for the Autograph range specifically, M receives its products from a supplier in Turkey eight weeks in advance.
Finally, the Per Una range, which is currently enjoying its seventh year of success, has proven to be highly popular and successful among its target group of women. With its unique style and design, Per Una also comes with a reasonable price tag, making affordability its distinguishing factor. In today’s market, women not only desire stylish clothing but also seek options that fit within their budget, especially during the economic downturn when customers are more cautious with their purchases. Figure 3.6 illustrates the difference between order-winning, qualifying, and less important factors in terms of their importance and contribution to the organization’s competitiveness.
The graphs depict the level of competitiveness or appeal to customers in relation to the operation’s performance for various factors. Order winning factors exhibit a consistent and substantial increase in their contribution to competitiveness as the operation improves in providing them. Qualifying factors are considered prerequisites, and if the operation cannot exceed the expected level of performance, it can greatly harm its competitive position. Objectives with lesser importance have minimal influence on customers, regardless of the operation’s proficiency in them.
(N Slack, S Chambers and R Johnston, Operation Management, p. 73-74)
The Autograph range is rated as the highest among the three ranges, mainly due to its high cost. This range is known for its superior quality and durability compared to the other two. As a result, the cost of the Autograph range is significantly higher. The Per Una range is rated as the second highest in terms of cost, as it falls slightly below the quality standard of the Autograph range. It offers a medium range of quality. The Classic and Perfect range is rated third, with a focus on value and comfortable styles. Lastly, we consider the dependability factor, which rates the ranges based on the proportions of goods that are out of stock. A low rating is given a score of 0, while a high rating is given a score of 5.
Both the Autograph and Per Una ranges are rated at 5 because the design of these two ranges changes each season to accommodate the UK’s four-season weather. When a particular style or design sells out for the season, there will be no replacement stock available. However, the Perfect and Classic range is rated at 0.1 because the styles are more basic and suitable for every season. M only needs to add more range or request additional stock from its supplier for these ranges. The flexibility rating indicates the extent of product offerings for the three ranges, ranging from 0 for low range to 5 for high range. Once again, the Autograph and Per Una ranges have a flexibility rating of 5.
This is because Autograph and Per Una offer a wide variety of products to suit different occasions and budgets. Customers are sure to find something they need. The Perfect and Classic range is rated at point 3, indicating that it offers moderate flexibility. These two lines also offer basic goods such as women’s wear, slippers, and nightwear. The quality here refers to the quality of the products offered. When customers pay a higher price, they expect the fabrics and product lifespan to be of higher quality and longer-lasting.
The Autograph range will be at the forefront of quality, featuring luxurious fabrics like cashmere and silk. Following close behind will be the Per Una range, followed by the Perfect and Classic ranges. While these two ranges may not offer luxury fabrics, they still provide quality fabrics that align with M’s core values of ‘Quality, Value, Service, Innovation, and Trust’. At the bottom of the polar diagram, speed is represented by a rating of 0, indicating long waiting times for stock arrival. On the other hand, a rating of 5 represents immediate availability of stocks.
Autograph is rated as the responsible group for this range with a rating of 4. They have implemented a new supplier term, which involves ordering the stocks from the supplier 8 weeks in advance. This new system ensures efficient collaboration between the team and the supplier, eliminating any potential stock shortage issues. Additionally, for the Per Una, Classic, and Perfect ranges, a quarter of women’s wear will be updated every 5-6 weeks or on a 3-week cycle.
