Takeover of Marks and Spencer by Arcadia Group

Some time ago, Arcadia attempted to a hostile coup bid of Marks and Spencer, but it was rejected by the control panel of M&S. As the two organizations have different strength in customers minds, customers would feel confused with their gulls. In addition, they do non share the same seat customers; M&S target middle class, middle ages and they have practical needs (Lun et al. 2011), darn Arcadias target group belong to young and vogue people (Arcadia, 2011). And Arcadia (2011) would like to extend its international markets which against the closing losing phone line abroad strategy of M&S (Vandevelde, 2001). They do non have strategic fits. According to the issues above, after the takeover of M&S, Arcadia would have entered a invigorated market with a wise brand, as the brands of both are not suitable. For example, brand M&S is quality, not the fashion brand of Arcadia. Then, when they use the be brands names, images or value, customers will feel confused with the brand. So, building a new brand is the most effective way to combining the two groups of customers. In order to keep Arcadias be customers loyalty and reach the M&Ss customers, delirious branding could work. As Lindstrom (2005) said when customers appeal to more frantic brand value, they are more likely to pay.

Although building a new brand can solve the confusion problem, thither will be more risks of building a new brand. As the intensive competition in the supermarket and clothing industry, a new brand is difficult to survive. And as a earthly concern company, they cannot make up brand stories or messages, then the brand of M&S hard change its brand to a new one and even make customers more confused. As the brand issues, it is not feasible to take over M&S for Arcadia. As the brand change, the target should change as well. However, they have two groups of target customers and the two groups have petty similarities. Facing this, Acadia need to re-segment its customers, and find the most suitable target.... If you fate to get a full essay, order it on our website: Ordercustompaper.com

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