Marks and Spencer (M&S) Innovation Strategies in the Retail Sector

This report provides an in-depth analysis of Marks and Spencer's (M&S) innovation strategies within the evolving retail landscape. It begins with an executive summary highlighting the company's focus on adapting to changes in consumer behavior and market conditions. The introduction emphasizes the importance of innovation for business competitiveness, particularly through price leadership and differentiation. The main body of the report explores the future of the retail industry, including the impact of political, social, and technological changes. It examines M&S's initiatives in sustainability, such as healthier product offerings and collaborations with organizations like Oxfam. The report also discusses the role of knowledge transfer through cross-functional cooperation and highlights M&S's innovation requirements, including wage distribution, sustainable packaging, and enhanced consumer engagement through technologies like AI. Furthermore, the report outlines how M&S can build its future innovation capabilities through technology transformation programs, venture labs, and digital platform development. The report concludes by summarizing key findings and recommendations for M&S to remain competitive and successful in the retail sector.

INNOVATION

.......................................................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Future of the retail industry in 2022 and beyond........................................................................4
M&S innovation requirements....................................................................................................7
Building of M&S future innovation capabilities.........................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

Executive summary
This report presents the analysis of current strategies adopted by Marks and Spencer
which is a retail giant headquartered in United Kingdom . This report analyses the future of the
retail industry in 2022 and beyond by seeing the current scenarios ,markets condition and
consumers behaviour. The requirements of the retail company for innovation and measures for
building environment for the business were also be explained. Building of future innovation
capabilities will be briefly described about how can a retail company can innovate to stay in the
market and grow in the industry. The company is using various new methods for innovation
capabilities and is focusing on artificial technology and new age technology for introducing new
change in the retail industry. It is one of the very few companies which is is offering new age
high tech technology for consumer experience. It has installed different robots in its retail stores
which help consumers in their shopping and also helping the company in their supply chain.

INTRODUCTION
Improving and replacing something refers to the innovation like a process,product,or
service. It is a process through which products and services are replaced by using new techniques
and tools. Creating some value is the main feature of the innovation. Business have various
options to improve their competitiveness by price leadership and differentiation ,for both of
them innovation is required. Organizations can go for price leadership by developing new
innovative and effective processes. Business which want to go for differentiation they innovate
new features in the products in compare to their competitors. Today start-ups launch their
business by developing new and very innovating products and services. Innovation is the
important factors for log term success and growth of the firm. It requires higher level of
creativity. Innovation needs extra efforts and willingness for taking risks than the typical
projects. All the businesses need to innovate to grow in the dynamic environment. This report is
going to mention innovation plan for MARK and SPENCERS about how come their leaders can
implement it. Future of the industry and various innovations requirements will be also discussed.
Building innovation capabilities for the company will also be studied in brief.
MAIN BODY
Future of the retail industry in 2022 and beyond
As there is change in consumers world there should be parallel change in different
industries. Because of the changes in consumer's world, they are living in a time of huge
political, social and technological changes. Marks and Spencer observed that the consumers are
looking for organisation with leadership(Simões, Lyra and Otola, 2021). The company has been
a organisation working for social change since last 133 years. The company is showing potential
to play a leading role in future by being sustainable. Through this the company is enabling the
consumers to have positive effect on well being, communities and the planet, by the initiatives,
the company is making(Bălăsescu, 2021).
The company's aim for the future is to take care of consumers needs in environment
friendly ways. The company is increasing the global food sales from synthetic to healthier
products. It is also initiating to serve their single serve packs of snacks, ice creams, etc. which
will not be containing more than 250 calories. Many stores of the company which are full line
are arranged to have spaces for charity work, community groups and local interest groups for

use. The company has also planed a collaboration with Oxfam in future for a span of 3 years
between UK and India with aim to develop a better and deeper understanding about the relation
between the sourcing practices and human right impacts of the company. Under Plan A there will
be products having attributes which will be addressing the prioritized social, ethical and
environmental impacts. The precious environment of planet earth is under increasing pressure of
extinction of resources because of the growing population of world and the consumption increase
due to raise in population. Although the company by its initiatives is making a great progress in
raising awareness regarding the climate change our planet is facing, the science indicates that
there is still a huge need to accelerate efforts by humans to create a low carbon future. This is
the reason why the company is also concentrating on the the use of plastic packaging and is
focusing on more environmental friendly alternatives like recyclable plastic packagings(Omri,
2020).
The respective company is also focusing on the stake holder's needs as on their demand
the company is going towards more sustainable and healthier lifestyle of their consumers. Their
demands are fulfilled by the company by focusing on incorporating sustainability in the
company's supply chain.
Hence, the main aim of the Board is to establish a sustainable, environmental friendly and
consumer friendly business with the help of consistent, profitable growth and other aim is to
make sure that organisational people act responsibly in meetings in order to take care of
important decisions to positively and innovatively change the organization(Bodolica, Spraggon
and Soueid, 2019).
Use of Knowledge Transfer through Cross-Functional Co-operation
By cross functional cooperation the transfer of knowledge is the main cornerstone of
consumers value creation in the organization. For formulating the service in different areas it is
important to share knowledge between executives, functions of business and units. Ineffective
communication leads to problems in knowledge transfer. It makes difficult to combine expertise
and innovate services for consumers. Knowledge transfer helps in solving all these problems as
it functions as a link for maintaing relationship with consumers. Marks and Spencer is a multi
national company and use this knowledge transfer for effective communication between

managers of the company as it must be integrated across all the department for effective function
of the operation of the business. Knowledge must be shared to all department like
research .manufacturing,consumer service departments for effective functioning. Increased
relational exchanges makes utilization of knowledge resources to offer consumers with better
offering. Marks and Spencer encourages cross functional collaboration and structured their
business around teams of cross functional. Earlier the functions of the business were running in
silos and for making company more agile and function in complex environment, requirement of
communicating and collaborating with employees for smooth integration of brand new systems
and process has become very important.

M&S innovation requirements
Apart from only concentrating on the consumers the respective company need to
concentrate on the stake holders and the workmen in the company too. The main issue is the
wage distribution. The company, Mark and Spencer is not being able to distribute the salaries
and the wages in proper manner. If the people working in the company will not be paid well
enough, it is possible that the company may cherish for a while but not for longer terms(Gupta,
Kusi-Sarpong and Rezaei, 2020).
The company should be more concerned about taking steps innovatively in the matter of
packagings. There should be use of cloth or paper baggages for packing purpose because it will
be the more sustainable packagings. Other then plastic bags even if they are recyclable, cloth
bags and paper bags as packagings are more sustainable because they can be used again. The
company should prioritize sustainability over anything else.
The company should also be focusing on the other important factors related to the voice of the
company. There should be more collaborations, partnerships and advocacy to confirm that the
voice of Mark and Spencer is reaching out and heard.
By the consumers, investors, target audience and suppliers there is a high exception by
the company to be more transparent about the challenges they are facing. The company should
be stating the barriers that are coming in between the goals of the company so that there should
be support of the suppliers, consumers, investor and even the target audience.
The companies are expected to develop environmental and social targets that support the U.N.
Sustainable Development Goals(De Oliveira and et, al., 2020).
The company, Mark and Spencer should also be focusing on the other needs of consumers too as
there are more wants of consumers apart from health cautious products the consumers want
quality product which should also be at a reasonable price. All of the consumer needs should be
taken in consideration to make them satisfied. The company should be concerned on engaging
the consumers so that they do not opt for other companies in the market.
To attract and satisfy more consumers the respective company should enable facilities like “Try
before you buy”. The consumers will prefer the company more which will let the consumer first
try the product and then choose if they want to buy it or not.

An introduction to the AI technology will be the most innovative step any organization could
take for the growth. With the help of Artificial intelligence the company can manage the
inventories more effectively. For example, AI can measure consumer spending analytics to
predict when and which types of items might be required for the sales. This will help the
company to drive the system efficiently. On the other hand auditing the whole store will be a
difficult task to analyse the consumer needs( Ferreira, Fernandes and Ferreira, 2019).
Building of M&S future innovation capabilities
Marks and Spencer can plan its future transformation. It can do innovation by using
innovative technology transformation programme which will help it to become digital first
business and provide consumers a better consumer experience. Company can design it to create
it more agile,fats and commercial technology function which will help the organization to deliver
exponential growth(Simões, Lyra and Otola, 2021). M&S has its core presence in United
Kingdom,old citizens of the country will you about the superior quality socks,tights and various
other products. While the organization has remained traditional from its formation,but the retail
sector of the nation and world has been changing rapidly. Various new trends of fashion have
come in the market,new entrants is increasing day by day and dominating the market. Company
has to find out new ways for competing with them. Company is struggling to target consumers
especially young consumers and keep up with the trend. Customer behaviour is changing from
stores to online. Supply chain issues,multiple year sales declines in clothing and home products
business has made organization to change its strategy. The company has recognized the
importance of digital marketing and technology platforms. Britishers are one of the biggest
buyers of clothes from online platforms and expect retailers to provide them omni channel sales
experience(Santoro and et, al., 2018). Consumers may see the products at store,gather
information on mobile phones and buy it through personal computers. So this has created a big
problem for M&S. Here are some of the innovative capabilities which company can explore to
grow-
 Venture labs- M&S has less retail presence in the online market as its site was runned by
amazon. Company can never win the evolving market with this strategy ,they have to put
in the investment,change the web design and relaunch in the market if they want to gain
position in the market of retail industry. The new web platform must have high end

technology features and all the information about the products and prices of the products.
Consumers must not face any issues while browsing and gets the right content as it will
attract more business to them. Company should establish a new unit venture labs which
will help company in experimenting different ideas to improves the products and services
while providing better consumer experience to consumers. Venture lab will find out the
shopping behaviours in next 10-15 years(Ravi and Bhagat, 2020). Testing and building
digital platforms and products that will fulfil the expectations of the consumers in the
upcoming era. Organization can provide consumers with virtual experience of stores and
shopping by the use of technology. They even can personalize the experience of online
buying and become a luxury brand. For all of this venture labs will provide the
technology and expert skills to the company.
Illustration 1: Use of Ai in stores,2022
 Improving stores experience- With the decreasing sales industry is facing issues while
operating the stores. The expenses of stores are more than the profits. Many stores are

thinking of closing the stores as it will reduce the loss but also decrease the scale of
business in the market. Physical stores matter a lot as consumer will not buy products
from online platforms only. The solution for this problem is that M&S can innovate the in
store experience for consumers. They can provide browse and buy kiosks,it will provide
consumers the facility to scan the products by bar codes and buy the products in their
requirement size. Company can even provide features like interactive digital displays,
touchscreens,magic mirrors and many more. These facilities will help consumers in
buying the products easily and in simple manner. Consumers today want value for the
money. Digitalization today has changed the consumer experience. M&S can improve
their stores interior to show that they support sustainability( WPantano and Vannucci,
2019). This will show their concern towards nature and help in improving their brand
image. They can target consumer groups for providing them personal experience like for
young consumers ,for aged consumers.
 Working with partners- M&S can partner with suppliers to grow technology
business ,it will help them to increase the market share. They can provide innovative
packaging which will provide some differentiation to the products to the
products,improving the sales and market share of business. Due to the covid pandemic
the retail sector has been affected a lot. Company has to work with local suppliers as
international import was shut down. This has made the dependency on international
vendors to an end and local vendors are also getting business. Use of local made products
will help company to improve its brand image in between consumers. They can market
their products as made in nation products,which will increase their sales(Liu and De
Giovanni, 2019).

Illustration 2: Digital mirrors in stores,2022

 Indoor positioning- IPS has been new trend in the retail sector,which helps consumers to
find products in stores. It has a great potential in the industry. But the main challenge is
its implementation as for this it require hardware and infrastructure. M&S will have to
use high end tools for this and provide necessary skills to its staff regarding how to
operate it(Haas, 2019). Using it on the stores will help consumers to navigate products
easily in the stores where there are thousands of products.. These systems have huge
potential and are not even used by the competitors of M&S. This will provide the
company a advantage in future in the retail sector(Dahlande and Wallin, 2020).
 Using artificial intelligence- This will be a game changer for M&S and will change the
operations of business. This industry is technology driven in todays environment. But AI
is far more complex than any other technology. It may result in inefficiencies as workers
may find incorrect sales of SKUs. If company is able to solve all these issues then it may
help the business to save money and time in long term. AI can provide managers to
manage inventory more effectively. It can easily measure consumer data to know what
items or products they are buying. They can do the auditing of business in simple
manner(Lee and et, al., 2021)(Aithal and Aithal,2019) .
Illustration 3: Interactive mirrors,2022