IntroductionMarks & Spencer (M&S) was originated in Englandand marched to Hong Kong in 1988. M&S department store in Hong Kong iswholly-owned by M&S Head Office in England till 30 December 2017.Startingfrom 30 December 2017, Al-Futtaim owned theM&S HK and Macau franchise, based on their agreement, more stores will be opened in HongKong and Macau.
There are around 29 stores in Hong Kong(16 Core shops, 13 food shops). M&S provides larger size clothing, Britishfood and beverage, snacks. The products are known for their high quality andfair trade. Facing the strong competitors, the sales of M&S the foodbusiness is increasing while the clothing business is dropping. In thissituation, M&S is expanding their food and beverage business in Hong Kong.More M&S food store is opened while numbers of core shops will be decrease.
DynamicEnvironmentM&Sis struggling to compete in the market for clothing, selling fresh food andfood products with many strong competitors. The rapidly changing consumer trends, consumption pattern and consumerperceptions of the market have been changed. M&S needs to find new fashionstyles that suitable for Hong Kong customers andwhat they prefer.Nowadays,customers highly price sensitive; lead to more a competitive environment.M&S clothing products are out of swim and expensive; the current clothingrange is not suitable for Hong Kong customers.
Also, people in Hong Kong arenot so familiar with the Britishfood and beverage, snacks, people are more willing to try the Japanese food andKorean food more. M&S lacks the ability to understand the changes in socialtrends in Hong Kong. ExternalFactors & Internal Factors Sociocultural: Global warming is a hot topic in the world. People are more conscious to theirhealth and environmental protection. They will concern what a company doesto combat climate change, reduce waste, recycle and support fair trade.
Itleads M&S concern more in its productions. M&S launch Plan A which is anenvironmental-friendly project globally.M&S is selling products and determining how these products are consumed anddisposed of by consumers. M&S will useless packaging and lessbags to save the environment and natural resources.
Also, recyclingis one of the mostimportant parts inPlan A. Technological:The advanced technologies to introduce products are more widely in the marketfor online shopping and fast delivery. New technology can be used to identifythe new fashion and trend change in different parts of the world. M&S HKonly run the website but without any products’ information, not even provide amobile app. Although conducting surveys on the website is a good idea tocollect customers’ feedback and understanding their demands, but still far notenough in today competition. Operating Cost and Human Resources: The operating cost in Hong Kong is getting higher and higher.
The rising labourcost and rental which accounts for the largest portion. This means that theincreased cost in resulting less profits. Also the manpower is a real challengein Hong Kong.
Apart from shortage, people in Hong Kong always looking for anopportunity to have a career change, seeking for a better payoff and workingenvironment. It leads to a high turnover rate. Short-termPlanSocialMedia ContestsIn order to increased brand awareness and boost the salesin a short period of time, we will launch a Facebook contests.
It should beeye-catching, make people pay attention to and try to understand our contests.We will create different social media fans page/ accounts; invite popularYouTubers and different online media like “100 most” and “WHIZOO” to takevideos for us to promote the campaign. The video willshow how YouTuber or KOL doshopping in M&S and create their own recipes as an example. The contestswill also promote on other social media like Instagram and Twitter, attractsdifferent social media users. The contest will be hold on Facebook. Thiscontest will be in two-part.
It will begin with a recipe contest; by customerssubmit their best recipes by using M&S food and beverage or snacks. Theother part is voting the recipes. We will ask “Fans” to generate the content,their own recipes with M&S products and post on our Facebook page.With this addition voting element, it can furtherincrease the brand awareness by suggesting the voters try on each of therecipes, which will buy and use M&S products.
The important part is thatthey will share the votes with their friends. The winners can enjoy cash andprize.Long-termPlanAs we understand M&S HK is weak in technological, for long-term business development,foster communication with the target markets and build a stronger relationshipbetween the M&S and customers in Hong Kong. M&S HK will invest more inthe technological area. It is a must to develop the website, online service andthe social media accounts to interact with the public.
Furthermore, developmobile apps, we understand people now using mobile phone shopping are morefrequent than using computers. As mentioned, the consumption pattern andconsumer perceptions of the markethave been changed. People usually go online to do the information search, check the products’ details and compare differentproducts before they dothe actual purchase. Even more, they will choose online shopping rather go to the retail store in-person. Many strong competitors of M HK provide details product catalog on website, provide onlineshopping and delivery services. If M provide the same or better service,it can increase its competing power in HK market. Social media accounts are notonly can be used to interact with target customers, it can also be a tool tocollect consumers’ data, feedback and shopping preference.
After gathering andanalysis all data, it can help in long-term business development and futurestrategic planning.ConclusionTherapidly changing consumertrends, consumption pattern and consumerperceptions of the market have been changed. M&S need to change. Themarkets and customers will never stay and wait. Startingon re-building the brand awareness, M&S may get back on track. “The timefor action is now. It’s never too late to do something.” (Antoine deSaint-Exupery)