Marks And Spencer Group Plc · LSE:MKS
Marks And Spencer — Investor Presentation (2014)
49 slides from Marks And Spencer's investor presentation, 2014
Slide 1: M&S.com Investor Seminar
M&S.COM Investor Seminar Mes
Slide 2: Our Strategy
OUR STRATEGY Marc Bolland YOUR Mas
Slide 3: Transforming the Business
TRANSFORMING THE BUSINESS 2010 2014 Traditional, International, British Multi-channel Retailer Retailer
Slide 4: Transforming the Business
TRANSFORMING THE BUSINESS International by multi-channel Drive International 2015 Drive UK LFL growth presence retailer 2010 A leading UK and UK space and LFL International to multi-channel growth Company 2013 retailer BRAND 2010 Focus on UK STORES to CLOTHING 2013 HOME FOOD
Slide 5: Transforming Our Multi-Channel Capability
TRANSFORMING OUR MULTI-CHANNEL CAPABILITY THEN NOW Outdated infrastructure New EDC Outsourced platform M&S.com flagship site
Slide 6: The Changing Consumer & Retailing Landscape
THE CHANGING CONSUMER & RETAILING LANDSCAPE Laura Wade-Gery
Slide 7: Our M&S.com Model
OUR M&S.COM MODEL A flagship website combining content & commerce A flexible web infrastructure fit for the future Customers able to shop the way they want The right skills and culture to drive continual innovation Multi-channel thinking embedded across the organisation A better, more efficient busi
Slide 8: Customer Opportunity
CUSTOMER OPPORTUNITY Shop with M&S in store Shop with M&S 6.7m in store AND online but do not shop online 8.3m with us or the competition 34m M&S customers in a year 19.0m Shop with M&S in store only but do shop with competitors online
Slide 9: Changing Customer Behaviour - Browsing
CHANGING CUSTOMER BEHAVIOUR-BROWSING 100m weekly visits on the high street 250m weekly visits online Only 14.4% of clothing purchases made online in the market
Slide 10: Changing Customer Behaviour - Devices
CHANGING CUSTOMER BEHAVIOUR-DEVICES Smartphone ownership Tablet ownership 50 Smartphone Basic mobile phone 80 45 70 40 44% % of mobile phone owners % of adult UK population 35 60 30 50 25 40 20 30 15 20 10 14% 10 5 0 0 Apr-12 Jul-12 Sep-12 Jan-13 Apr-13 Jun-13 Sep-13 Dec-13 Apr-12 Jul-12 Sep-12 Jan-
Slide 11: Changing Customer Behaviour
CHANGING CUSTOMER BEHAVIOUR 52% 100hrs 3hrs 41mins of google searches for of video uploaded spent consuming women’s clothing made to YouTube per digital media via mobile device minute per day
Slide 12: Convergence of Content and Commerce
CONVERGENCE OF CONTENT AND COMMERCE VIA SOCIAL An opportunity for retailers
Slide 13: Why M&S Is Investing in Publishing
WHY M&S IS INVESTING IN PUBLISHING Brand differentiation 24% more likely to buy Enhanced product curation Drives frequency of visits Cost effective brand reach Drives new customer acquisition
Slide 14: Our New Flagship M&S.com
OUR NEW FLAGSHIP M&S.COM David Walmsley
Slide 15: Customer at the Heart of the Build
CUSTOMER AT THE HEART OF THE BUILD Segmentation of existing Addressing existing online customers customer pain points Overcoming barriers for Extensive consumer non M&S.com customers testing
Slide 16: Responding to Consumer Trends
RESPONDING TO CONSUMER TRENDS Blending content & commerce Edited point of view Daily publishing
Slide 17: Responding to Consumer Trends
RESPONDING TO CONSUMER TRENDS Enhanced imagery Improved visual navigation Outfit
Slide 18: Enhanced Real Time Stock Availability
ENHANCED REAL TIME STOCK AVAILABILITY Refreshed every 15 minutes on product page Real time at check-out
Slide 19: Delivering on Our Promises to Customers
DELIVERING ON OUR PROMISES TO CUSTOMERS
Slide 20: Platform for the Future
PLATFORM FOR THE FUTURE Kyle McGinn
Slide 21: A Flexible Platform
A FLEXIBLE PLATFORM Easy integration of new technology & innovation Benefitting from ongoing partner WEBSPHERE investment STERLING COMMERCE Proven and reliable technology at its core
Slide 22: Right Skills and Culture of Innovation
RIGHT SKILLS AND CULTURE OF INNOVATION In touch with emerging trends A new agile development Building skills in-‐house & start-‐up community mentality Efficient & fast development in tune with emerging trends
Slide 23: M&S.com Investor Seminar
M&S.COM Investor Seminar Mes
Slide 24: M&S.com Within the Business
Stores as part M&S.COM WITHIN of THEtheBUSINESS multichannel To be updated experience Laura Wade-Gery, Sacha Berendji Sacha Berendji& Scott Fyfe
Slide 25: Multi-Channel Within Our DNA
MULTI-CHANNEL WITHIN OUR DNA Pre 2011 2011 2012 2013 2014 Stores adopt PACK, Limited capability & Top 100 multi-channel inc multi-channel selling isolated group awareness course Large scale iPad roll out Business units and Recruitment of expert team marketing adopt integrated cross channel planning
Slide 26: Channels Joined Up for Customers
CHANNELS JOINED UP FOR CUSTOMERS Customers and M&S.com employees using as the flagship the same base - a 24/7 shop website window Quick and An extended convenient catalogue for stores in store via M&S.com collection
Slide 27: Trading Across Our Channels
TRADING ACROSS OUR CHANNELS A new way of thinking M&S.com a fundamental part of buying process Extended range building New merchandising principles
Slide 28: Talking to Our Customers
TALKING TO OUR CUSTOMERS “One of the most exciilng parts of planning for a “tournament Is always the team sult and this has been io exception. We are detighted with what has been ereated for the team and staff to wear. The FA and Marks & Spencer have enjoyed a great relationship over six years, and
Slide 29: Understanding Our Customer
UNDERSTANDING OUR CUSTOMER SMES [ase I STYLE&LIVING WOMEN BEAUTY MEN Wy | mNDASTORE ¥ | sian KIDS HOME&GARDEN —- FOODAWINE—-FLOWERS GIFTS Reisen (M&S BANK OFFERS FREE DELIVERY WHEN YOU SPEND OVERS50° FINO OUTIMORE | FREE OELERY TO AUSTRALIA NZ. USA OVER #30, GET THE CODE SAVILE ROW INSPIRED. Pure Or
Slide 30: A Convenient Delivery Proposition
A CONVENIENT DELIVERY PROPOSITION Laura Wade-Gery
Slide 31: The EDC-NDC Is the Other Big Part of Multi-Channel Infrastructure
THE EDC-NDC IS THE OTHER BIG PART OF THE RIGHT MULTI-CHANNEL INFRASTRUCTURE Combines national distribution AND all e-comm stock Automation to reduce costs Central location to reduce operating costs and enhance proposition
Slide 32: Progress of EDC Since May 2013
PROGRESS OF EDC SINCE MAY 2013 May 2013 Consolidated all of e-comm volumes over the last year 90% of e-comm GM orders now April 2014 being shipped via EDC 2 million singles a week as of late May
Slide 33: On Track to Evolve the Delivery Proposition Further
WE ARE ON TRACK TO EVOLVE THE DELIVERY PROPOSITION FURTHER All e-comm orders primary fulfilment from EDC Introduction of a free over £50 home delivery service Pre-peak further evolution of our delivery proposition: Later cut offs & more shopping days More focus on non store delivery options
Slide 34: Summary
SUMMARY Delivered new front and back end infrastructure Steadily managing the transition Migrating existing online customers to new platform Will now begin to leverage this new infrastructure Capitalise on the 19m customer opportunity
Slide 35: M&S.com in the Marketing Mix
M&S.COM IN THE MARKETING MIX To be updated Patrick Bousquet-Chavanne
Slide 36: Joined Up Customer Experience
JOINED UP CUSTOMER EXPERIENCE Advertising Windows Welcome zone Instore decor & VM Social Loyalty Mobile Email PR Online advertising M&S.com
Slide 37: Digitalisation of Marketing Landscape
DIGITALISATION OF MARKETING LANDSCAPE UK digital advertising expenditure growth £4.0 billion +58% £6.3 billion 2010 2013 Source IAB / PwC Digital Ad spend study
Slide 38: Digitalisation of M&S Marketing
DIGITALISATION OF M&S MARKETING Readjustment Sole of marketing marketing spend agency Built an engaged New skills social in-house audience
Slide 39: Discover the New M&S.com
DISCOVER THE NEW M&S.COM In-store brochure Windows In-store decor & VM DISCOVER the NEW Marksandspencer.com Social M&S magazine M&S.com Partnerships
Slide 40: Discover the New M&S.com
DISCOVER THE NEW M&S.COM “narksandspeneercoar wr bolder, beter ne rducing the brighter, bolder, beter MES website a <sandspencer.com fans 2D ie: ED) oy Z P : DISCOVER = RECEIVE oe £10 OFF y* DISC OVER LQ weNEW
Slide 41: Discover the New M&S.com
DISCOVER THE NEW M&S.COM THE BEST IN INTERNATIONAL DESIGN AND'DECORATION FASHION FORECAST (iii from just £20 “Has Simon Cowell had Botox? Yes!” Who btching now’?
Slide 42: Discover the New M&S.com
DISCOVER THE NEW M&S.COM
Slide 43: Discover the New M&S.com
DISCOVER THE NEW M&S.COM FOR THE LOVE OF LINGERIE i °
Slide 44: Summary
Summary Laura Wade-Gery Mes
Slide 45: Our M&S.com Model
OUR M&S.COM MODEL A flagship website combining content & commerce A flexible web infrastructure fit for the future Customers able to shop the way they want The right skills and culture to drive continual innovation Multi-channel thinking embedded across the organisation A better, more efficient busi
Slide 46: What It Means for the Business
WHAT IT MEANS FOR THE BUSINESS • ‘Heavy lifting’ capital investment behind us • M&S.com will be at least as profitable as the store channel • We will continue to innovate to stay ahead • Steady build of online run rate • M&S.com will be a key growth engine in the UK and Internationally
Slide 47: In Conclusion
IN CONCLUSION Delivered Transformed the business Fit and agile for the future
Slide 48: Close
CLOSE Marc Bolland Mes
Slide 49: The Transformation of Our Multi-Channel Capability
THE TRANSFORMATION OF OUR MULTI-CHANNEL CAPABILITY NOW & IN THE THEN FUTURE Fit for future platform & infrastructure Outdated infrastructure Agile – fast & flexible Outsourced platform Multi-channel in the DNA
Marks and Spencer Group — Investor Presentation (2014) on 6ix