Reail Theory and Practice

Attached on files Ralph Lauren

RETAIL THEORY AND PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................3
INTRODUCTION TO MARKS AND SPENCERS.......................................................................3
MACRO FACTORS THAT AFFCTING FASHION INDUSTRY................................................4
MICRO ENVIRONMENTAL ASPECTS ......................................................................................7
DIFFERENT STRATEGIES AND TACTICS USED IN RETAIL SECTORS:............................8
RECOMMENDATION.................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The basic concept of retail in market is dealing in buying or selling of goods or services.
As they involves the direct connection with the customer and than accordingly the strategies are
made in respect of fulfilling their needs and wants in better way. The structure of retail sectors is
to buy goods from the manufactures and than sell it to consumer, through the aspects of
increasing sales in business (Ko, Phau and Aiello, 2016). In respect of determining the matter
related to retail industry in context of fashion, it is undertaken on the bases of buying or
designing the clothes from the manufacture and than selling it to customer by fulfilling their
needs and wants in better way. Fashion retain sectors use various procedure to build the large
customer base such as organising fashion shows, any charity function to attract customer interest
or also promoting business through using reusable products to deign innovative and attractive
clothing.
INTRODUCTION TO MARKS AND SPENCERS
In respect of undertaking the matter related to fashion retail sectors, Marks and Spencers
carry the renowned brand name in the global market,. As people are attracted towards the
services which is provided by them in respect of designing such products which attract their
interest towards such services for longer time period. The concept of M&S are founded by
Michael marks and Thomas Spencer in 1884. the main business or headquarters is located in
London and they carry the operation work in many places (Baker and Saren, eds., 2016). They
are engaged with around 80,787 employees carrying the business at global level and also
reaching to customer towards building the strong base with them. M&S are located in around
1463 places and also currently it is examined that in UK they engaged their business in around
959 stores including 615 stores which is mainly based on food related products. In respect of
clothing division they deal in around 11% market share in UK. The mission which is carried by
M&S is relating to building strong base among customer in respect of maintaining values,
quality services or innovation in existing products or bringing new products in market.
In context of determining the position of M&S in market, they mainly carry the premium
pricing methods in which they carry the pricing high by providing the quality products to their
customer (Rocamora, 2017). This help them in building the sustain position in market by
reaching to large customer through promoting the products in market.

MACRO FACTORS THAT AFFCTING FASHION INDUSTRY
Macro factors are such factors which affecting the working of the industry by
undertaking the external aspects such as:
Factors Aspects Fashion industry Marks and Spencers
company
Political Government taxes In this the impact
arises in respect of
motivating people to
prefer the fabrics from
own country in respect
of charging or
imposing higher taxes
in respect of import of
goods.
In respect of positive
impact which arises
from taxes is related to
undertaking free trade
procedure in respect of
expanding the business
or dealing in various
countries globally
(Marks and Spencer
SWOT and PESTLE
analysis, 2019).
In context of negative
aspects, it resulting in
facing issue at the time
of Brexit. As there is
loss of free trade
polices which resulting
in increasing the cost
of production with less
demands in market.
Economic Fluctuation in interest
rate
In context of fashion
industry, the
fluctuation arises in
respect of changes in
global economy in
In this aspects, the
economic factors
which is relating to
undertaking the
premium pricing

respect of expanding
the business. This
results in bringing
recession in country
and also their is low
rates of employment in
respect of working in
company (Kim, and
Kim, 2017).
strategy affects the
customer interest in
respect of getting low
pricing products from
the competitors. Thus,
through this aspects, it
results in facing issue
in respect of retaining
customer towards the
services for longer
way.
Social Changes in demand
and culture of the
customer
In fashion industry, the
social factors which
affecting the industry
is relevant to facing
the different demand
of the customer. As
due to changes in time,
the demand of the
customer are also
changing, thus it
affecting the industry
in respect of reaching
to large customer base.
In M&S, the factors
are affecting are in
respect of not adapting
the trendy procedure
in business. As
customer demands
trendy clothing which
can suits their
personality but in UK
they not deal in any
such new name in
market (Pan, 2016).
Technological Digital Platform As every person prefer
to shops through
online instead of
visiting to shops or
waiting for their
numbers. Thus, in
As M&S carry the
strong presence in
respect of promoting
the business through e-
commerce and
fulfilling the customer

such case online is the
biggest impact which
is faced by fashion
industry in respect of
reaching to large
customer. Thus,
through innovative
aspects in respect of
promoting the business
online increasing more
number of customer
towards their products.
needs through
providing the accurate
services. The impact
arises in respect of
promoting the business
through unique and
innovative
advertisement. This
helps them in
attracting customer for
longer time period.
Legal Tax rates, export
restrictions and data
protection
As fashion industry
mainly carries their
business at larger sale
and thus also deal in
mainly companies
(Fildes, Ma and
Kolassa, 2018). The
issue raises in respect
of boycotting the
fashion brand in
respect of imposing
high charges in
exporting the brand to
different countries.
In respect of M&S, the
impact which arises in
respect for working of
the business is relating
to lack of data
protection security of
customers. Customer
complained that they
are facing lack of
security in respect of
protecting their
personal information.
Environmental Climatic changes,
harmful ingredients
used in products
In the context of
fashion industry, the
impact arises in
respect of harmful
The impact arises in
respect of demanding
the eco friendly
products in market

ingredients used in
products which affects
the environment. It
also resulting in
affecting the interest
of the customer in
respect of charging
extra prices in context
of shipping cost.
which results in
producing or reusing
the waste products.
Through this aspects,
they sustain the
business in market for
longer time period.
MICRO ENVIRONMENTAL ASPECTS
Porters five forces is the model which generally used to identify the five forces of the
external environment which used to shape the industry and help the organization in finding out
the strength and weakness of organization.
(High) Competition in Industry: Marks and Spencer used to operate in a very competitive retail
industry of the UK. As there are many clothing company who used to operate in this sector. This
eventually has a impact on the price of the company product as company has to keep the profit
margin low to sustain the company image in the market. The biggest competitor of the
organization, specifically in the clothing sector are a Swedish multinational clothing retail
company and Next Plc, British multinational clothing store (Zhao And et.al., 2016).
(High) Threat of New Entrants: This force used to affect the Mark and Spencer very badly in
their functioning as new organization used to bring the innovation in the industry which
sometime attract the eye of the customer. This eventually brings the extra pressure on Mark and
Spencer to use the different strategy to sustain the customer.
(Medium) Bargaining power of Supplier: As in the clothing sector of the retail industry all the
organization used to buy the product from the numerous supplier, supplier are in the dominant
position to decrease the margin of the company. This force does not used to affect the Marks and
Spencer that much as M&S had build good and efficient supply chain with the multiple suppliers
in the market (Carraher, 2018).
(High) Bargaining power of Buyer: As buyer are the one who used to be on the demanding
position of the new and innovative product to satisfy there need in the market at the as low price

as possible. Mark and Spencer has to lower down there profit margin to satisfy the customer
base. As number of the loyal customer are high of M&S. Company has to offer the discount to
maintain the same.
(High) Threat of substitute product: This force also used to affect the Marks and Spencer in
the long run of the business as there are many company which used to offer the product of the
Marks and Spencer at the lower rate but with degrading quality. This eventually affects the brand
of the company and also used to have the impact on the sales of the company in the long run of
the business (Mathooko and Ogutu, 2015).
DIFFERENT STRATEGIES AND TACTICS USED IN RETAIL SECTORS:
In context of applying the retail theories in respect of determining the long term strategies
is relevant to undertaking the technological factors which affects the working of the retail sectors
externally. As marks and Spencers mainly adapt the traditional way in respect of dealing the
business through online presence. The taste of customer are related to attracting the quality of the
products and also try that products before buying that products (Petersen, Mackinney-Valentin
and Melchior, 2016). Thus, in such manner the issue arises in respect of reaching to customer
through online platform. They can build the strong relationship with them buy attracting the
customer towards the products through providing offers or discount on particular products or
services. Thus, this retail life cycle theory is applied in the technological factors is relating to the
Introducing the products in market through using the promotional tool such as
advertisement to reach large customer base. As advertisement is one of the most important
aspects in respect of interacting with customer and understanding their needs in better way. It
also helps in introducing the company in market and also reaching to customer through attracting
them the company products or designing.
Growth: If the M&S planning to sustain in market for longer time period, they are using
the platform of technology in respect of retaining the customer interest towards the services for
longer way. The growth can be examined in respect of disclosing the products at low ratio, in
respect of determining the needs of the customer towards the products (Ashby, Smith and Shand,
2017). As this helps M&S to gather information regarding the customer satisfaction after
attaining the particular products or services.
Maturity is examined through using the innovative ideas to build the strong base with
customer. This can be attained through adapting the procedure of the advanced technology in

respect of determining the stability of innovation at particular time period. Declining the
procedure in respect of changes in time and taste of the customer. As in this the role of
competitors are examined in respect of approaching to customer through new innovation.
Thus, in respect of comparing the external factors with the micro environment
challengers are resulting to bargaining power of the buyers. As M&S mainly adapts the premium
pricing strategy in which they set the prices which is higher in comparison to other fashion
industries products. Thus, in such manner the challenges occurs in respect of distracting the mind
of the buyers in respect of providing offers or discount by other company regarding promoting
the clothing brands (Petermans and Kent, eds., 2016). As customer verify the products of
different companies and than choose the right brand with best quality products. Thus, in such
aspects it resulting in facing issue in retaining the customer interest towards the products for
longer time period.
In context of undertaking the planning relevant to tactics which is imposed in respect of
gaining advantages on short term bases is relevant to the environmental factors. In this the theory
is applied in respect of conflict theory which is mainly based on legal aspects in respect of
imposing taxes on importing or exporting goods and services. As in respect of environment
evolution theory, in which the changes occurs in respect of delivering the products or services on
timely bases (Carter and Yeo, 2016). As conflict arises in respect of changes in weather
conditions which restricts the transportation company to deliver goods within stipulated time. In
context of M&S the issue also arises in respect of using the harmful ingredient or smoky
elements in clothing which harms the environment at larger scale.
Thus, this elements can be compared with the micro environment aspects in which the
threats of new entrants is examined in respect of undertaking the company overall procedure. As
threats is examined in respect of innovating the products in market so that they can retain their
position in market and also provide such products which is eco friendly (Long and Morpeth, eds.,
2016). Through this aspects, they can retain their interest towards such services and also fulfil
their needs in respect of changes in time and climatic changes.
These are the major aspects which resulting in identifying the factors which affecting the
external environment in respect of comparing with the micro factors. Through this aspects it
related in examining such aspects in respect of undertaking such factors which resulting in
bringing changes in the procedure of the working (Fernie and Grant, 2019). They can also gather

the reviews from customer through adapting the innovate procedure through technology by
building the large base of customer in market.
RECOMMENDATION
From the above study, the following aspects are to be examined in respect of overcoming
from the challenges are resulting to:
 Appointing the skilled person to handle the queries of the customer as M&S is lacking in
reaching and building the strong base with the customer. Through this aspects, they can
handle the queries which is arises through online platform and they also resolve such
queries in better way.
 The another factors which is to be recommended to the M&S in respect of reusing the
waste products due to changes in demands. As customer are attracted if they find the
company dealing in any such activity which resulting in saving cost and also reusing the
waste products to produce new products in market. This can be done ion respect of
reaching to large customer regarding putting the waste clothes in particular areas and or
also conducting any such events in which the usage products will results to give new
identity by designings such products in market.
 High security coded are imposed in respect of dealing the business online. As lot of
complaint are raised from the customer regarding lack of security of their personal
information. Thus, in such manner their rights are protected in respect of using the high
security code system which is imposed in company websites to protected their rights in
better way.
CONCLUSION
From the above study, the report carries various aspects which is relating to determining
the concept of retail industry. As fashion industry mainly carries wider ranges of services in
which they had to use various aspects to retain the customer interest towards the services for
longer time period. In respect of examining the factors relating to M&S through which they
cause impact in respect of external factors or also they causes impact through internal working.
Thus, in such aspects by using the premium pricing strategy and also target the products in
appropriate market segment results in gaining higher products in company and they also
maintain the reputation in market to sustain the business for longer time period.

REFERENCES
Books and Journals
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Carraher, S.M., 2018. An examination of an instrument to measure Porter’s Five Forces Model.
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Fernie, J. and Grant, D.B., 2019. Fashion logistics: Insights into the fashion retail supply chain.
Kogan Page Publishers.
Fildes, R.A., Ma, S. and Kolassa, S., 2018. Retail forecasting: research and practice.
Kim, J.H. and Kim, M., 2017. Luxury fashion retailers and consumers’ perceptions of luxury
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Long, P. and Morpeth, N.D. eds., 2016. Tourism and the Creative Industries: Theories, policies
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Petermans, A. and Kent, A. eds., 2016. Retail design: theoretical perspectives. Taylor & Francis.
Petersen, T.B., Mackinney-Valentin, M. and Melchior, M.R., 2016. Fashion thinking.
Rocamora, A., 2017. Mediatization and digital media in the field of fashion. Fashion Theory.
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Zhao, Z. Y. And et.al., 2016. Competitiveness assessment of the biomass power generation
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Online:
Marks and Spencer SWOT and PESTLE analysis. 2019. Online. Available through:
<https://www.swotandpestle.com/marks-and-spencer/>.