Marks Spenser in Turkey
For years, M&S’ marketing strategy was simple: produce high quality products under a famous brand name at affordable prices, and advertise the products in classical ways. However, in recent years this strategy collapsed and the company started to lose its competitiveness. M&S had to find solution to this problem to survive in both domestic and overseas marketing environment. It is known that franchising is one of the most important factors of future development of any company. Consequently it is essential for M&S to have a reliable franchisee as Fiba Holding to become successful in such a big marketing area as Turkey.
First of all, franchising allows the company to achieve success in Turkey with minimal economic and political risks. Since opening of own outlet in Turkey requires an agreement with the government and careful research on local market conditions, it is to the advantage of M&S to have a local partner working under company’s brand name. And about 700 outlets in 34 countries is the best show of efficiency of franchising.
In Turkey, the Fiba Holding is planning to increase the number of M&S outlets by
the end of the 2002. The profit made in recent years encouraged the Fiba Holdng to expand as a M&S franchisee. In addition, a “M&S credit card” financial service is occured to be very attractive for their potential customers.
Another factor making M&S brand name so popular are the cut prices and many types of promotions done by the company periodically. Since M&S has concentrated on middle class customers, the cut price and promotion strategy plays a significant role in increasing the local demand. Furthermore, M&S company tries to behave in such a way that inflation of Turkish currency has a very tiny effect on the prices changing.
Relying on our strong company legacy that is been in place since 1968, I believe that we can use that strategically to improve our overall marketing strategy and help achieve our overall goal of continued franchise expansion throughout the country. One of the most effective ways to capitalize on our company legacy and reputation is through product placement and advertising. I predict that our overall marketing strategy for developing products will be small at first. Any initial product placement will be on things like napkins, aprons and other apparel. You also investigate creating our own unique company logo. This will help to increase our brand recognition. Also, we can create our own website and have an interactive menu that allows our customers to order our products online and have them be ready for pickup at the restaurant location. After some initial trial and error, we can consider expanding our product line of items that have more prosper
M&S are one of the UK's leading retailers of clothes, food, home products and financial services. Some 10 million people shop with us each week in over 375 stores. In addition M&S have 155 stores managed under franchise in 28 territories mostly in Europe, the Middle East, Asia and the Far East, stores in the Republic of Ireland, nine wholly owned stores in Hong Kong and M&S own the US supermarket group, Kings Super Markets. The main objectives of marks and Spencer's are as follows:
Place: They opened discount factory outlet stores in rural areas and retail stores in urban shopping center. By selling different kind of product in different places help them to meet the different need of the customers. On the other hand, they also sell their product online, where customer can purchase their product at anywhere and anytime. All this make them be able to maximize their gain.
Lovisa has proven it is capable of successfully operating profitably in international territories, having established its initial portfolio of company owned stores in Australia, New Zealand, Singapore, Malaysia and South Africa and supporting franchised stores in Kuwait, the United Arab Emirates, and Saudi Arabia. Lovisa currently has a portfolio of 93 international stores (including 13 franchised stores). When ranked by store contribution, 11 of Lovisa’s top 20 stores during the year were located outside of Australia, with all of Lovisa’s international territories operating profitably. The Group plans to remain nimble and opportunistic in expanding and moving into new markets, such that if opportunities arise, the Group may accelerate its plans to enter a new market or continue to grow an existing market.
Also the threat of substitute products and competitors should be considered, because customer will choose products with lower price, also people today are pay more attention to environmental protection. ( This is NOT the conclusion its recommendations) Recommendation: 1. Marshalls should do research before extend its market to new countries, in order to fully understand the local competitive market situation. 2. There should find lower cost raw material to confront the exiting competitors, because their competitor can offer lower price with same products to a certain extent.
Mom and pop shops are the traditional back bone of the retail industry employing a significant amount of the populace. They are located conveniently near residential areas and have fewer operational costs. There are fewer aspersions nonetheless that the shops have been facing survival threats from large conglomerate such as wall mart. Several researches that have been conducted agree that the introduction of large wall mart stores have had predominantly negative effect on mom and pop shops.
Depending on the quality and packaging of the product, the company may target the younger generation. The same will dictate that the product is packaged into a diverse range of shapes and sizes, so that the consumers may be in a position to afford the same regardless of their financial constraints. The price strategy therefore opens up the target market since the wide range carters for a bulk of the society. Pricing of products has a place in the perception of the goods created on the minds of the customers and prospective customers.
The goods and services provided by each seller are differentiated by cuisine, skill, ingredients used and more. Each seller sets their prices according to their production costs with little regard for other competitors. There is high access to information, such as prices, menus and reviews, but limited by the fact that the value can only be determined after the experience.
This particular case is about the implementation of the popular fast-food chain, Burger King, into the Japanese market. Despite its’ strong market position in other countries, Burger King has some difficulties to face within the Japanese market. In this report, my team and I will analyze Burger King’s current situation and problems and suggest alternatives.
Understanding the basic agreements and variable in the franchising process of a McDonald’s restaurant helps to shed light onto how the company has become such a global power in the food ser...
...egment, that are retail, franchise and wholesale. For recommendation Nova must have its own store in all atate in Malaysia. Nova also can open a franchise, so it can segment it’s consist in domestic and international franchise operation and can generate revenue from franchise through product sale, royalties from franchise retail sale and franchise fees.
... conclusion, to compete with the intense competition in today’s fast-food market, KFC China differentiates the company by being innovative. Three significant innovative strategies are localizing the menu, understanding the Chinese culture, and hiring local management. KFC demonstrates that one size fits all approach in the global market does not always work. Many typical Western approach to foreign expansion is to deliver the same products or services as their original establishment. For instance, Domino’s Pizza, an American restaurant chain, nearly failed in Australia due to the underestimation of the need to adapt their offerings to the local tastes. KFC China offers important lessons for global firms. It is essential to know that to what extend the company should keep the existing business model in emerging markets and to what extend it should be thrown away.
The first step in any business is to think of or create a business idea. Without an idea, one cannot launch their business off the ground. A right direction is needed to create a business with a unique idea. However, other options include franchising or buying an existing business (1). Franchising allows an individual to run stores such as Burger King or McDonalds under the corporate name. It involves taking training classes and a heap of money in order to start a franchise. A Franchisee will have to buy products and services from the corporate entity they are franchising from, which is often required. Buying a franchise is like taking a piece of the pie from the company that is franchising and sharing that pie with everybody else. In addition having a franchise allows one to communicate and in essence become a big part of an added business opportunity (4). Franchising is far from easy to start and maintain for that matter. Starting a franchise involves a l...
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...
The 3 Mr Price brands are fully omni-channel retailers. Mr Price increased its contribution of high LSM (8-10) shoppers over the last year. Mr Price ranks in the top 10 in South Africa for number of Facebook fans and has the highest number of Instagram followers amongst its local competitors. This shows how in touch with its customers Mr Price is and how social media helps strengthen the brand.