1.1.3 Per una
Nevertheless, age and life-cycle can be tricky variables (Kolter, P., et al., 2006). This range is targeted on female customers who like fashion stuff and aged between 25 and 35 with the sizes of 8-18 as the young women today do not want to stay behind at the fashion trends. They want the fresh fashion and dressing smartly. The limited editions targeted on women they like to have different stylish from other and who pursue for latest fashion. Per una offer better design and price to target on young and middle-income women.
1.2 Conclusion
Market segmentations helps in better understanding of the customers’ needs and wants. M&S should improve their segmentation of clothing especially for Autograph range. It should come out with more brands for more choices to customers. However, in evaluating different market segments, the firm must look at the segment’s overall attractiveness and the company’s objectives and resources (Kolter, P., et al., 2006). M&S have to make sure that each segment has the characteristics to make the size, growth, profitability, scale economies, and low risk of company more attractive. The personal income of customers range is from low to high, so the firm must offer some cheap product, medium price product and expensive price product to different market segments to gain competitive advantages from other competitors.
Question 2
What are the order winners and qualifier for these different ranges?
2.1 Order winner
A particularly useful way of determining the relative importance of competitive factors is to distinguish between order winner and order qualifier. Order winner is the way to examine a firm’s ability to be successful in the marketplace. They are regarded by customers as key reasons for buying the products and services (Krajewski, et al., 2007). It is the most important aspects of the way a company defines its competitive stances (Pycraft, M). It maybe will improve the chances of gaining more business (Slack, N.).
2.2 Order qualifier
For order qualifier, customers may demand a certain level of demonstrated performance before even contemplating a service or product (Krajewski, et al., 2007). Order qualifier may not win extra business even the operation improves its performance, but they are important in another way (Pycraft, M., 2000). However, below the qualifying level, it can certainly lose business (Slack, N.).
2.3.1 Perfect and Classic collection
Order winner of Perfect and Classic ranges are its price, value and timeless as customers particularly value reasonable price and long-lasting collection. Its order qualifier is the quality. The design and quality of classic collection skim and flatter the natural body shape is another important way to the business as it make customers looks greater and feeling good when wearing it.
2.3.2The autograph range
The order winner of Autograph range is their fashion range with its design specification and exclusive level. The beautifully and exclusive designed fulfill what the customers wants. However, its qualifier is higher quality.
2.3.3 Per una
The order winner of per una range is its speed of design changes which always designs at the very latest trend with distinct style. The product is variety of choices with its design. Its order qualifier is the quality of the product which made with quality material.
2.4 Conclusion
Customers are clearly an important influence on the priority of performance objectives within an operation, but they are not the only one (Pycraft, M., 2000). Sometimes, customer service gives a company competitive advantage. It can be one of the order winners to win the business. With providing high quality product and value at reasonable price, if M&S wants to achieve successful in the retailing market, it also need to offer a good service that exceed customer’s expectation.
Question 3
What are the different operations performance objectives for the different product groups?
3.1 Table
3.2 Operations Performance Objectives
Organizations must decide how customers value the competitive factors. The relative importance of the competitive factors to customers will then influence the relative importance of the operation’s performance objectives (Pycraft, M., 2000). Different performance objectives are required from the manufacturing operation. Operations require a more tightly defined set of objectives that relates specifically to its basic task of satisfying customer requirement (Slack, N). However, different product group require different performance objectives.
3.2.1 Quality
Product quality is a dimension of product that is defined by customers. Most customer are not looking for services, they are looking for high value. It is the major influence on customer satisfaction or dissatisfaction (Slack, N.). However, Quality needs to be adequate with its price. Like example, the perfect and classic range provide product with quality and value at a reasonable price. To support the need for high value to customers, operations of M&S must ensure that products are high quality and undamaged.
3.2.2 Cost
Lower cost operation is giving a cost advantage to customers. It is a universally attractive objective (Slack, N). Lowering cost can increase demand for services and products, but it also reduces profit margins if the products cannot be produces at lower cost (Krajewski, et al., 2007). The Perfect and Classic range uses the reasonable cost as their operation priority. However, the Autograph range charge with a premium cost with its unique product designed by famous designer. Hence, cost is less important in Autograph range. Per una range that aims for competitive costs do not necessarily strive for low quality product. They provide with quality design at very affordable prices.
3.2.3 Flexibility
Flexibility is the degree to which an operation’s process can change what it does, how it is doing it, or when it is doing it (Slack, N). There are three types of flexibility, product mix flexibility, variety and volume flexibility. In this case, the flexibility is focus on M&S’s product range and design changes. Product mix flexibility is the ability to offer a range of products (Pycraft, M., 2000). This may simply mean the catalogue contains many items. The range of product which Autograph and per una produces must to be wide enough to deal with all customer possibilities to provide them more choices items. Variety is handling a wide assortment of products. Variety differs from customization in that the products are not necessarily unique to specific customers and may have repetitive demands (Krajewski, et al., 2007). Like perfect and classic range, they provide a wide range of product and given customers more choices of the products. Therefore, they need more flexibility to cope with wide product range. Volume flexibility is the ability to adjust for seasonal variations and fluctuations (Krajewski, et al., 2007). It is particularly important for fashion clothing. For per una, there have customer complaint with not enough stock of the sizes she wants. Therefore, per una can increase its volume flexibility.
3.2.4 Design
The design of what is offered to customers also is an important factor in services especially in clothing market. The design stage is critical because it links the creation of new products to the corporate strategy of the firm (Krajewski, et al., 2007). It is the long term objective to compete in. Several varieties of products can be made quickly through coming out with the different design within a short period, like per una range.
3.2.5 Speed
Speed is in terms of fast response to customers’ request, is something else that is important (Slack, N.). In per una range, customers just should not be kept waiting the speed of the fashion trends. Per una range always follow the fashion trends and do not disappoint its customers. This range competes with rapid introduction of new fashion products for the customers.
3.3 Conclusion
In any kind of organization, it is a responsibility of the operations function to understand the objectives of its customer and set its objectives accordingly. However, operation management also needs to focus more on what other competitors are doing to their product which offer equal quality and cost product. Therefore, the operation can try to extend its product range. Its priority might shift from speed towards developing the flexibility to offer a sufficiently wide range of products to come out with more brands to fight with its competitors. Furthermore, improve communication with supply chain is a need to reduce the operating cost. In addition, M&S have to make sure that their operating expenses do not affect their profit margin. (1997 words)
References
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Bearden, W., Ingram, T., & LaForge, R. “Marketing- Principles and Perspectives, 5th edition”, McGraw Hill (2007)
- Gordon A. Wyner, “Segmentation Architecture,” Marketing Management, March/April 2000, pp. 6-7
- Krajewski, L. J., Ritzman, L. P. & Malhotra, M. K. “Operations Management- Processes and value”. Pearson Prentice Hall (2007)
- Kotler, P., Kevin, L. & Keller. “Marketing Management” Pearson education International (2006)
- Kolter, P., Keller, K.L., Hoon Ang, S., Meng Leong, S., & Tiong Tan, C. “Marketing Management- An Asian Perspective”. Pearson Prentice Hall (2006)
- Pycraft, M. “Operation Management”. Pearson South Afrika (2000)
- Slack, N., Chambers, S. & Johnston, R. “Operations Management”. Prentice Hall
