Managing Innovation in the Retail Sector: Marks and Spencer Analysis

This report provides a comprehensive analysis of Marks and Spencer's (M&S) innovation strategies within the retail industry. It begins with an executive summary, followed by an introduction that highlights the importance of innovation. The report offers an overview of M&S, detailing its history, established in 1884, its innovation journey, and its current performance, emphasizing its focus on digital technologies and customer-centric approaches. The report explores key innovations like the introduction of new food products, the pioneering of 'cold chain distribution,' and the adoption of advanced technologies like RFID and digital payment solutions. Furthermore, the report examines the retail industry's performance in 2016, highlighting the positive impacts of e-commerce, online retail, and technological advancements. It also discusses the growth of sectors like video games, health, beauty, and jewelry, and how these contributed to the industry's success. The report concludes by emphasizing the importance of innovation in maintaining a competitive edge and meeting evolving customer demands. The report is a valuable resource for understanding how a prominent retailer leverages innovation to thrive in a dynamic market.

Managing innovation in business

Table of Contents
Executive summary....................................................................................................................3
INTRODUCTION......................................................................................................................4
Organization & Industry overview.........................................................................................4
Organization and its innovation history.................................................................................4
Organization existing innovation performance and capabilities............................................5
Industry in 2016.....................................................................................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9
Appendix..................................................................................................................................10

Executive summary
The report has based upon the Marks and Spencer who is deal in the retail industry
and sustain the brand image at international level. The report has provided that company has
a good innovation performance from the last 130 years because from 19 century, it keep
providing innovative product in order to attract range of new customers toward them. On the
other side, report also provide that Marks and Spencer also have a strong innovation
performance and capabilities such that in every year, company provide innovative products
by complying laws and legislation. Also from 2016, the industry suddenly take a U-turn
which shows the positive impact upon the success of a retail firm.

INTRODUCTION
Innovation is all about to produce the new products and make changes in the existing
ones. In the same way, current report main aim is to create awareness and gain knowledge
related to innovation within retail industry. For that, chosen firm for this report is Marks and
Spencer who is the top retail company in UK and provide the range of products and service to
their customers. Also, report will provide organization’s innovation history and its existing
innovation performance and capabilities as well. Further, study will describe the retail
industry and its performance in 2016.
Organization & Industry overview
Organization and its innovation history
Marks and Spencer (M&S) is known as one of the top luxury brand in UK because it
provide its service from 130 years because it was establish in 1884, in London. Currently the
company is specializes in clothing, home products and food products. Also, there were more
than 600 stores in all over the world who provide food products to their customers and that is
why, it is consider one of the top retail firm in UK as well as in international market too.
Also, from last 130 years, the company history teaches to learn from its innovation strategy.
That is why, through secondary research, it is analyzed that company is focus on innovation
strongly from 2012 onward (Prajogo, 2016). For instance, in 2012, M&S moves to the new
location on the campus of University of Leeds that allow education community in order to
access it for the first time which helps to creates brand reputation within a firm.
Further, in 2013, company add new food products in its food department and also
company used scientific development in order to create products which also change the daily
lives of our customers. Thus, it is difficult to choose just two M&S innovation to include.
Apart from this, in 1948, company also recruit Technical Executive and Chief Chemist for its
food division section who introduce many new food products which people know and love
today. In addition to this, the best key development for the company is ‘cold chain
distribution’ which was pioneered in 1960 (Marks and Spencer partners with true to drive
“digital innovation’, 2020). This is all about to use chilled products rather than frozen or pre-
cooked poultry which was the first time in the food retail industry and this in turn famous till
now, after many years.
Apart from this, its innovation history is not end here, but in 1934, Marks and Spencer
is the only first British retail firm who set up its own research laboratory to pioneer new

fabrics and this is all because of advance textile technology and the close relationship with
suppliers. This innovation help a company to easy- care of the synthetic fibers and from that,
company start focusing on the innovation, which is carry forward in 2020 also. In addition to
this, in 1960s, the company was the first retailer who launch seam- free, ladder resistant
stocking that solve the problem of ladies who had been bugging for many years. Therefore, as
the technology evolved, company also commit that it introduce wool garments which could
be washed in machine and new finishes for cotton that did not require ironing (Visnjic,
Wiengarten and Neely, 2016). This innovative strategy keep attract range of new customers
towards it and also help to increase the financial performance as well.
This all clearly shows that company is focusing on the digital technology and in the
current date also, the firm wants to introduce the product that meet the demand of customers
with regards to food and clothes. That is why, it is stay ahead in the competition of market
within a retail industry.
Organization existing innovation performance and capabilities
From the history, it is clearly analyzed that company is mainly focus on the
innovation strategy, through which it stay ahead in the competition. In the same way, as per
the current position, the existing innovation performance and capabilities of Marks and
Spencer clearly reflect that the firm is mainly focus on the digital technology and it keep
complying with new and advance techniques in order to draw attention of range of customers
towards it. Such that its current strategy is to push forward with as strategy to become a
digital-first retailer in the world (Ortiz-Villajos and Sotoca, 2018). That is why, it set a
program in 2017, November whose main aim is to ‘restoring the basics, shaping the future
and also making Marks and Spencer special in the retail industry’. Thus, to meet the define
aim, company also create Retail Data Academy where it provide training to its staff members
through technology such that machine learning and artificial intelligence with an aim is to
become a most data- literate leadership team in retail.
Therefore, it is also clearly analyzed that company is keep complying with advance
tool and techniques in order to stay ahead in the competition and that is why, due to having
strong financial performance, it did not hesitate to take any risk (Ferreira and Vargas, 2016).
As per the article published in 2013, in which it is clearly mention about M&S and its
innovation strategy with regards to the clothes. When company has opened its first store in
Holland in Amsterdam where it provide an opportunity to the people in order to explore the

full range of clothing with food products. A 9 panel videowall display content using a new
digital signage software solution that shows the new fashion to the fashion-lovers. Also, the
stylish touch screen order point also allow the customers to browse the full catalogue and also
provide home delivery to the customers (M&S innovation, 2019). This is the biggest
innovation that attract range of customers to select the best and fashionable dress by their
own choice. Also it is analyze that this increase the demand of customers and innovation
creates a positive impression upon the customers and its rival firm as well.
In addition to this, another digital solution which a company introduce in the market
is its RFID solution for the footwear. Such that in 2013, the company launch a trial of a
digital solution within a selected footwear department, whose main aim is to inspire, entertain
and educate customers with regards to new footwear and accessories area. This is also used
RFID technology in order to recognize the customer’s chosen show and then display
inspirational catwalk videos. This new innovation also assist the company to attract the range
of public and also the 2nd generation RFID technology which M&S intends to have all general
merchandise and clothing product that adopt new techniques as well (Vom Brocke and
Mendling, 2018).
From last many years, the company start offering online products and start accepting
digital payment as well. But this online payment acceptance is not a good option for Apple
users and that is why, in order to solve the issue, M&S start launching new application for
Apple user by following the strategy of other company. This in turn, help iPhone 6 and Apple
watches users to use their own devices to make purchase and pay through digital transaction.
Thus, the sources also shows that there is a wide range of people who adopted mobile
payment technology because it will make a payment system little bit faster and more
convenient as compared to others. Hence, this is clearly shows that company is keep
investing in its new innovation strategies which in turn assist to grab attention of many
customers towards it (Pilav-Velić and Marjanovic, 2016). Therefore, it can be stated that
company keep determine the improve business opportunities in the market to make sure that
it offer the special and different products through a new varieties of packaging. Along with
this, company still comply with laws so that it did not cause any negative impact upon the
business performance and also make sure that it will not affect the environment in negative
manner.

Industry in 2016
In 2016, the retail industry earn a good reputation and also earn a good amount that
help in the success of economy. Such that this year is consider one of the most successful and
exciting year in UK retail industry which thoroughly recovered from the low point of 2000
recession. Even in this year, the customers are willingly spend their money to purchase the
product without any bargaining. But on the other side, the most affecting trend in retail
industry is the use of technological innovation i.e. e- commerce, online retail and alternative
to physical media that replace the traditional advertisement strategy from market (Abdelkafi
and Pero, 2018). On the other hand, through customer survey, which is also clearly indicate
that they are highly prefer to purchase the product online which also creates a positive impact
upon the industry.
The importance of online shopping to UK retail industry is almost impossible, but
from 2016 onward, retail industry shows that this is the most comfortable mode to reach large
amount of customers and start selling the product online with different offers (Paredes and
et.al. 2018). This is the positive action taken by the retail industry in 2016 and this is
successful as well. Not only this, 2016 also consider as a growth year for the retail industry
because company start focusing on new product and start making changes in the existing ones
which in turn help to attract range of new customers as well. That is why, the change is start
from introducing video games in retail sector and now it had become one of the biggest
source of entertainment. Such that in UK, the video games help to earn £4.9 billion in 2016
which is one of the biggest hike since 2010 (Retail industry in 2016, 2019).
In addition to this, retail sector also expand its business in health, beauty and cosmetic
line which is also become a fastest growing industry in 2016 and its revenue is also increases
up to 5.7% from last year. As a result, three of the top European beauty and cosmetic
franchise companies originated in UK i.e. Body Shop, subsidiary of L’Oréal and Body
washes. Apart from this, jewelry is another prominent sector in the retail sector which grows
in 2016. Such that the British Jewelry also achieve success with online purchasing as are the
other sector in the retail industry. Thus, it is clearly determine that the growth of the retail
sector is proceed from 2016 onward because this year, the retail sector help to cope up with
the recession period and that is why, this year is known as a most promising year among all
which assist to enhance the economic condition of the country in well manner and also meet
the define aim (Andersson and Forslund, 2018). Not only this, companies start complying
with the advance technology i.e. artificial intelligence and online selling which also attract

range of new customer towards it. Thus, it can be stated that 2016 is one of the most
promising year for the retail industry as it help company to divert from technological
development and innovation by meet the demand of customers as well.
CONCLUSION
By summing up above, it has been concluded that innovation is consider the major
key of success of every company. Such that report conclude Marks and Spencer is also keep
introducing innovative products to their customers which in turn assist to meet the define aim
and objectives. Also, report concluded from the innovation history that M&S uses innovation
products from 130 years and as per the existing innovation performance and capabilities, its
stand in the top among all rivals. Lastly, from the report it has been concluded that retail
industry took a high jump from 2016 with regards to using innovative products and
complying advance tools and techniques as well.

REFERENCES
Books and Journals
Abdelkafi, N. and Pero, M., 2018. Supply chain innovation-driven business models. Business
Process Management Journal.
Andersson, P. and Forslund, H., 2018. Developing an indicator framework for measuring
sustainable logistics innovation in retail. Measuring Business Excellence.
Ferreira, L. B. and Vargas, E. R. D., 2016. Innovation in retail and the service-dominant
logic: case studies in Brazilian retail networks.
Ortiz-Villajos, J. M. and Sotoca, S., 2018. Innovation and business survival: A long-term
approach. Research Policy. 47(8). pp.1418-1436.
Paredes, K. M. B. and et.al., 2018. Retail innovation: perceptions, management, and
challenges of a systematic approach. In ISPIM conference proceedings (pp. 1-15). The
International Society for Professional Innovation Management (ISPIM).4
Pilav-Velić, A. and Marjanovic, O., 2016. Integrating open innovation and business process
innovation: Insights from a large-scale study on a transition economy. Information &
Management. 53(3). pp.398-408.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment
in delivering business performance. International journal of production Economics. 171.
pp.241-249.
Visnjic, I., Wiengarten, F. and Neely, A., 2016. Only the brave: Product innovation, service
business model innovation, and their impact on performance. Journal of Product
Innovation Management. 33(1). pp.36-52.
Vom Brocke, J. and Mendling, J., 2018. Business process management cases. Digital
Innovation and Business Transformation in Practice. Berlin et al.: Springer.
Online
M&S innovation. 2019. [Online]. Available through: <
http://retail-innovation.com/index.php/top-uk-retailers-launch-applepay-mobile-
payment>.
Marks and Spencer partners with true to drive “digital innovation’. 2020. [Online].
Available through: <https://fashionunited.uk/news/retail/marks-and-spencer-partners-
with-true-to-drive-digital-innovation/2018080731135>.
Retail industry in 2016. 2019. [Online]. Available through:
<https://www.franchisedirect.co.uk/information/ukretailindustryreport2016/>.

Appendix
Innovation in
Marks and
Spencer
Accept the payment
from Apple users
Provide 3-D video
gallery option to
fashion-lover
Provide footwear
inspiration through
RFID Technology