Marks & Spencer Company’s New Supply Chain Strategies

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In the M&S case, what market segments do the three different product ranges serve?

‘Classic’ ranges serve similar market segments. The market segments served by the three product ranges include women from across 3 different adult generations after their lifestyles and fashions. The strategy was to make the buying of clothes easier using clear displays, appropriate labeling with distinctive characteristics based on different pricing strategies addressing different market tastes and segments.

The segmentation addressed different generations with the “per unit” addressing the younger adults with the latest unique attribute of quality. On the other hand, the “Classics” range addresses the needs of the traditional woman, who is the old customer, aimed at appealing to old customers to come back. The “Perfect” and “Autograph” ranges provide items at accessible and high street prices respectively which covers customer needs of the 35 and 55 age brackets.

What are the market winners and qualifiers for these different ranges?

These are according to the categories of ‘Perfect’ and ‘Classic’ focused on timelessness, with quality and value correlated to “a reasonable price” succeeding St Michael, with low-cost sourcing to producers. However, “Autograph” extends M& S appeal with high costs focusing on availability and sourcing, based on material development. Here, “per una” draws on conformance to specifications without regard to pricing with good operational demand focused capabilities.

What are the different logistics performance objectives for the different product groups?

Perfect and Classic ranges Autograph
range
Per una range
Product range
Design changes Infrequent Broad, fashion Short lifecycle
Price Stable, reasonable Competitive None
Quality Value for money Cutting edge designs Fanatical attention to detail
Sales volume High Medium Low
Orders winners Quality and value Fashion range Set trend, quality, time to market
Orders qualifiers Price, availability Price, availability Price
Operations Priorities Reliability, costs Flexibility, speed Flexibility, very fast responses

References

Harrison, A., & Pavitt, J. (2003). Case 6 New Supply Chain Strategies at Old M&S. In R. Johnston (Ed.), Cases in Operations Management (3rd ed., pp. 24–28). Prentice Hall.

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