M&S: Analyzing Knowledge Management and Customer Relationship Strategy

This report provides an in-depth analysis of Marks & Spencer's (M&S) knowledge management and customer relationship management (CRM) strategies. It begins with an overview of M&S's business position and utilizes the BCG matrix to assess its product portfolio. A PESTEL analysis is then presented, examining the political, economic, social, technological, legal, and environmental factors influencing M&S's operations. The core of the report focuses on M&S's CRM strategy, detailing its implementation of Siebel CRM, its advantages, and its disadvantages. The report emphasizes the importance of understanding customer needs and leveraging technology like e-CRM and social CRM. It also highlights the role of employee commitment and effective communication in successful CRM implementation. Finally, the report provides recommendations for improvements, including CRM training, integration with social media, and a focus on customer feedback to enhance customer satisfaction and business performance. The report concludes with a list of relevant references.

Knowledge management and information system
strategy

Marks and Spencer
M&S is a leading British multinational retailer which is headquartered in Westminster, London. The mission of
the company is to provide high quality cloths, home ware and food products at competitive and affordable
prices so that large market share can be captured by delivering good value for the money invested by the
customers.

Business position of M&S

Interpretation
 According to the above BCG MATRIX, it can be seen that, M&S
cloths products for men and women, lingerie and night wear grab a
larger market share of the country.
 While, currently, its food products have a greater opportunities
available for the future growth but still, present market share is low.
 On the contrary, children's wear clothing has less market
opportunities to grow and have less market share as well.

PESTEL analysis of M&S

Plan A

Interpretation
 Political: Governmental rules and regulations regarding taxation, tariff, labour policies,
industry investment etc. impact M&S in different ways. In East Europe, liberalization policy
had been implemented in which government allows retail firms to start their operation
across distinct countries across the globe. Moreover, free trade agreements and several
health legislation regarding food products need to be consider by M&S to ensure fair
practices by complying with the political laws.
 Economic: In this, customer spending, their income, inflation, material cost, demographic
factors etc. impact M&S. Rising income of the people enhance customer spendings and as a
result, industry market demand has been increased. Through this, M&S became able to
serve larger customer base and enhanced its performance.
 Social: Social factors mainly includes customers shopping behaviour, fashion trends,
lifestyle, consumer preference etc. In the present age, consumer needs and desires are
changing rapidly hence, it is essential for the M&S to address that what consumer demand
and thereby deliver services accordingly.

Contd.
 Technological: In UK retail industry, automation, use of advanced technologies,
investment in research and development activities etc. comprises the technological
factors. It brings necessity for M&S to upgrade its technology by using tools like e-
commerce, m-commerce, online services, CRM, SCM etc. so that it can offer
qualitative services to the global customer.
 Legal: It includes laws and regulations like customer health and safety legislation,
antitrust regulations etc. Moreover, use of eco-friendly material and standard
regulations for the food production need to be strictly followed by M&S to assure
consumer safety.
 Environmental: M&S needs to maintain a safe environment by complying with the
environmental legislation and waste management. Recycling and reuse etc. manage
M&S's scarp and waste to a great extent. Moreover, it launched Plan A in 2007, to
maintain a healthy environment and become the most sustainable retailer.

M&S's business performance

Customer relationship Management
 CRM is a information technological system which allows enterprises regardless their size to
organize, automate and synchronize consumers at each and every facet of customer
interaction.
 In other words, it refers to the business practices, strategies and technologies which an
organization use in order to manage and examine customer interaction and data throughout
the life cycle.
 The primary goal of CRM is to retain existing customers and attract new customers as well.
By this, firms will be able to increase their turnover, market share and yield as well. It create
life long relationship with the consumers by ensuring consistent consumer interaction.

CRM in M&S
 With reference to M&S, it introduced Siebel CRM strategy in order to
strengthen the relationship by determining the consumer needs, wants and
desires and offer services accordingly.
 Its CRM slogan is that “customers are always and completely right” which
brings consumer attention towards M&S.
 The main focus of its CRM strategy is that what customer need, and what
we need to do to satisfy them?
 M&S use various tools and techniques like websites, direct mail, live chats
etc. in its customer engagement. Moreover, in the present times, use of
social networking sites such as social CRM also has been increasing rapidly
to examine and analyse consumer satisfaction and complaints.

M&S websites