* Product life cycle
Product life cycles (PLC) are the stages that a product goes through during its life cycle in the market. Product life cycle is used in order to show current stage of the product or the company at present which including four stages, Introduction, Growth, Maturity and Decline. PLC is useful for determining the current market position and it is significant for the company to adapt their product or brands marketing strategy to the changing condition of the market environment.
Introduction is first introduced. It offers something new in terms of its design or performance, with few competitors offering the same product. Growth as volume grows, competitors may enter the growing market. Keeping up with demand could prove to be the main operations.. Maturity Demand starts to level off. Operations will be expected to get the costs down in order to maintain profits or to allow price cutting. Decline After time, sales will decline with more competitors dropping out of the market. Eg. M&S is in a high fashion industry and its product offering is the latest trends and designs with a life of maximum 2 weeks so its product life cycle cure becomes like the above diagram.
* Boston Group Matrix
Uses market share and market growth criteria for determining the attractiveness and balance of a business portfolio.
Star is a business unit within a portfolio, which has a high market share in a growing market. It is well- established and fantastic opportunities. Question mark is a business unit within a portfolio that is in a growing market, but does not yet have high market share. Cash cow is a business unit within a portfolio that has a high market share in mature market. Dogs are business units within a portfolio that have low share in static or declining markets.
M&S in terms of BCG matrix is either dogs (cash in balance) or question marks (cash cow). The portfolio of M&Ss products is good in clothing having star position and in food M&S has occupied the position of question mark relative market shares is low with low industry growth and in financial services industry growth is high but M&Ss market share is low and will require substantial capital investment to turn them into stars.
* McKinsey Matrix
Highlights the importance of fit between strategy, structure, sytems, staff, style, skills and superordinate goals. Three aspects of organizing. First, organizing involves a lot more than just getting the organizational structure right; there are many other elements to attend to. Second, the 7-s framework emphasizes fit between all these elements everything from structure to skills needs to be connected together. Third, if managers change one element of the 7-s, the concept of fit suggests they are likely to have to change all the other elements as well in order to keep them all appropriately aligned to each other.
Strategy are plans an organization formulates to reach identified goals, and a set of decisions and actions aimed at gaining a sustainable advantage over the competition Structure is the key ingredient of organizing for success. But structure can only work if they are supported by formal and informal organizational system System can be subdivided in two ways. First, systems tend to emphasis either control over inputs or control over output. The second is between direct and indirect control.
Style refers to the leadership style of top managers in an organization and how key managers behave to achieving the organization goals. Staff is about the kinds of people in the organization and how they are developed. Skills relates to staff. It raises not only staff skills but also issues to do with how these skills are embedded in and captured by the organization as a whole. Superordinate goals refers to the overarching goals or purpose of the organization as a whole. Superordinate goals are placed at the center of the 7-s framework: all other elements should support these.
M&S are fully exercising the 7s model and coordinating at all levels to generate maximum output. Structure is well defined since it is old player in this industry so they have learnt a lot from their experience curve and now have developed an outstanding structure. In the initial phase M&S got experience through hit and trial method and now have developed good strategies and system. M&S also has got excellent skills and is full getting benefit of these skills. They are well known figures in clothing industry and have gained professional and productive staff. M&S have shared values which are widely spread in its all 7s and are reflected by their strategic moves
* Ansoffs Matrix
Is a very useful tool and can be used in nearly every scenario. It neatly summarizes many of the strategic options facing organizations.
Market penetration existing markets and products
This is a strategy by which a company seeks to increase the sales of its present products in its existing markets.
Product development existing markets and new product
This strategy has the aim of increasing sales by developing products for a companys existing market.
Market development existing products and new markets
This strategy has the aim of increasing sales by repositioning present products to new markets
Diversification develop new products in new markets
This could be related to what we do at the moment.
Diversification is a high risk strategy as the business is unfamiliar with the product and the target market.
We can see from the Ansoffs Matrix, M&Ss lunch of Financial services products will have involved a diversification strategy. As M&S did not already sells financial products, so new market and new product. Both capability and market consideration has driven M&S into development of new markets and products.
* Price The price of a product or service is the important influencers in the decision on whether to buy. Eg. Marks and Spencer vary in price. However most of the products seem to be fairly cheap affordable prices. This is good because the clothes are of good quality; however the pricing isnt too expensive. * Promotion represents all of the methods of communication that a marketer may use to provide information to different parties about the product. The promotion mix consists of four elements: advertising, sales promotion, public relations and personal selling. Eg. Marks and Spencer tend to promote ladies fashion mainly on Television and on their website. They also advertise on billboards etc.
* Place refers to providing the product at a place, which is convenient for consumers to access.eg. For M&S all ladies fashion is placed on a certain floor in the store, so it is easily found and is easy to locate, and find particular product. * Product Product covers both the usefulness and demand for an item in general and also any specific features and benefits. In general, when buying the fast fashion clothes, style and quality are the key requirements for customer. If it is to stand out from rivals products. It can be done by changing this brand name, quality, and packaging. Eg. M&S offers many different clothing concepts for man, woman and children, and also sell accessary and cosmetic